Penang State to study Airbnb woes before legalising operations

Airbnb, Why the New Logo?

HOW other cities worldwide tackle their Airbnb problems are being studied to see if the home-sharing business could be legalised or regulated in Penang.

The office of the Penang State Exco for Tourism Development, Arts, Culture and Heritage (Petach) is studying their policies to tackle the issue of residential home owners who rent out their units as if they were running a hotel or serviced apartment.

Its exco member Yeoh Soon Hin (pic) said the global home-sharing business was quite established in Penang now that when people buy a house or condominium unit, someone might approach them and offer to guide them to sign up with Airbnb and make money from their new property.

He told the assembly that Penang Global Tourism had met with Airbnb’s management team to discuss how to regulate the business.

“Airbnb told us that they are ready to cooperate and register Airbnb units in Penang with the local authority, but we have no laws or policies for this yet,” he said.

Yeoh said in San Francisco, Airbnb operators are limited to renting their homes to a maximum of 90 days a year.

“In Catalonia, Spain, Airbnb operators can be fined up to 30,000 Euros (RM140,000) and the unit owners fined up to 90,000 Euros (RM420,000) if there are complaints.

“In Singapore, the Urban Redevelopment Authority is proposing to limit Airbnb units to only allow up to six people each time to rent them and for only up to 90 days a year.

“For strata units, Singapore plans to allow it only if at least 80% of all unit owners in the building give consent.

“Japan enacted a law to allow home-sharing of units for only up to 180 days a year,” he said when replying a question from Daniel Gooi Zi Sen (PH-Pengkalan Kota).

Gooi said he was concerned because despite strong enforcement from Penang Island City Council since 2017 to stop residential property owners from using their units commercially, the Airbnb portal lists thousands of units in Penang.

“We cannot deny property owners from benefitting from their assets, but we also cannot let them continue to operate without paying their dues such as commercial assessment rates or the hotel fee,” he said.

Yeoh said Petach was studying how Airbnb operators are regulated while waiting for the federal government to draft laws on home-sharing.

“We raised the issue and were told that the Housing and Local Government Ministry and the Tourism, Arts and Culture Ministry are studying possible laws on this.”

Yeoh said the business was unfair to neighbours, the hotel industry and local authorities.

“They are paying assessments and utility rates for residential units but are using those units commercially while legal hotels that comply with all laws such as safety and traffic provisions pay much more.

“The peace and privacy of their neighbours are being intruded upon,” Yeoh said.

He said his team in Petach was also considering the possibility of recommending that Airbnb operators be charged double or triple the current residential assessment rates that they are paying now after they are legalised.

By arnold loh and r. sekaran at the penang state assembly

Should Airbnb be regulated?

MUCH has been said about Airbnb in the news of late. The Malaysian Association of Hotels (MAH) Penang branch has claimed that the emergence of Airbnb and illegal accommodation are among the main causes for Penang hotel occupancy rate to decline.

Another news report indicated that Airbnb operators are required to register with Kuala Lumpur City Hall. At this point in time, it is vital to see the concept of Airbnb. The platform was started to connect people who were looking to rent their homes to those who wanted hotel-free stay accommodation for short periods. The reason for the registration must be for the purpose of regulation by the authorities.

The claim by MAH that the emergence of Airbnb has caused hotel occupancy rates to drop must also be examined.

In terms of cleanliness and hospitality, although hotels do fit the bill, not all hotels are in that category. All hotels must be refurbished and kept clean at all times. It may be a bit too much to ask for luxury bedding or first class service, but cleanliness and pleasant service is not too difficult.

Airbnb hosts are conscious about their guests and the reviews that are given on the website. They go the extra mile, and it is not always accurate to say that Airbnb is cheaper and therefore people choose them over hotels. It is the space, the home away from home concept, and being looked after, the occasional bottle of wine left for guests, the fruit basket, the bottles of fruit juice and mineral water in the fridge — all of these go a long way in wooing guests.

In terms of protection for the hosts and the guests, Airbnb has enough protection in place. It is up to the renter to choose who they want to rent out to. Those who want to rent and those who are renting out their properties have their profiles. Reviews as to the safety of the place and its convenience — all can be seen from the website. It is a very transparent website and no one can complain that they were not aware that there was a danger or that they did not get their money’s worth. There are times that unfortunate Airbnb hosts unwittingly allow roguish guests and their premises are wrecked. The Airbnb hosts too, have a risk to take.

From the reports, it is unclear of the need for Airbnb to be registered or regulated. Hotel operators are required to register as it is a business. Airbnb is a service platform and not a business. For hosts, it is an additional income — especially for the elder population whose children have left, or even for those with university fees to pay, this additional income will be a good supplement. Unlike hotels and motels, Airbnb operators are there on a temporary basis. Sometimes, the owner may get a long-term tenant, and may not want to continue with the Airbnb concept.

Maybe we can take a leaf from countries where Airbnb has been regulated. In Los Angeles, United States, a regulation was passed for short-term rentals (vacation) with an initial cap on rentals for up to 120 days with flexibility to increase that number of days.

In New York, it is illegal to rent out an entire residence for less than 30 days. Short-term rentals are permitted if the homeowner is also staying there throughout the rental period and there are no more than two renters. This would be ideal for an elderly couple who would enjoy the company of young tourists who would in turn enjoy being in a home environment.

In Japan, anyone wanting to list their property on Airbnb will need to register with the local government, who will conduct fire and safety checks on the premises. The new regulations also limit rentals to 180 days per year.

Singapore has prohibited public housing rentals that are under six months, or three months in the case of private housing without the approval of the Urban Redevelopment Authority. In London and Paris, new laws have limited short-term rentals up to 90 days per year, and Liverpool City Council has pushed for national regulations to ensure that landlords register short-term rental properties.

Regulation is of critical importance in shaping the welfare of economies and society. Any form of regulation must work effectively and serve the public interest. Government agencies, in this case, the local councils are responsible for implementing regulatory policies and must be aimed towards protecting the consumer. When imposing such regulations on individuals, such as Airbnb hosts, there must be a goal that will help the government to achieve its purpose. The objective of a government or regulatory body is to ensure better and cheaper services and goods, and to provide a fair competition to any particular industry without encouraging a monopoly. Airbnb may be regulated and the town and city councils may want to draw up guidelines following from the examples cited above.

 By GRACE XAVIER
Grace Xavier is research fellow at the Faculty of Law, Universiti Malaya and she can be reached at gracem@um.edu.my

Read more:

13 Places Cracking Down on Airbnb - Condé Nast Traveler

MAH highlights need to scrap tourism tax, regulate Airbnb

Tourism Ministry to review laws to regulate Airbnb operators

Airbnb enters restaurant reservation business

Reading opens up minds

BACK in my first year when I was asked to read cases by my professor, my immediate reaction was to ask how many pages were there to read.

My professor replied: “There’s no harm reading more.”

I also remember attending a scholarship interview where I was asked to give an account of the books I had read.

Proudly I answered: “I did not read any books besides the academic textbooks.”

It is really depressing and shameful that I took pride of my disinterest towards the habit of reading.

This may appear unusual for a law student like me to recount such a disinterest but I am afraid to say that many of my fellow Malaysian friends share such a disinterest, too.

Many students read for the sake of passing their examinations. Many spend time on computer games and working adults may find it tiring to read outside working hours.

As for myself, I turned impatient, disappointed, annoyed and even regretted choosing law as I later found out that I had to read hundreds of pages of cases every week (putting aside the textbooks, commentaries and other journal articles).

Over the years while in law school, I cultivated the habit of reading.

It was hard at the beginning when I had to flip through the dictionary to check the meaning of the words I did not understand, that I lost patience reading the countless pages of books and needless to say I shed many tears in my struggle to finish my law studies.

However, one thing I can assure you is that the sufferings bore fruit. Indeed, they were rewarding. I am no longer sheltered and ignorant.

My general knowledge and vocabulary have increased and with it, my ability to communicate. With the increased knowledge, I can voice an opinion if needed.

The habit of reading opened up my mind that I am now able to see things more objectively than before.

The treasure of knowledge also taught me to keep an open mind and not to accept another’s views blindly.

Reading news and non-fiction illuminates the world for us and reading fiction gives us what non-fiction cannot.

Through reading we travel and through books we find treasures. In those wanderings we find humanity, through the characters we find knowledge.

As how human beings need to be fed, knowledge serves as nourishment for our minds.

Reading opens up the door of knowledge, an important treasure for our country to achieve the 2020 Vision.
So, I urge all of you to cultivate the habit of reading, for yourselves and our country.

JUNE LOH Kulim, Kedah

What Great Entrepreneurs Have In Common?

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By Drew Hansen Prime Movers

Image via Wikipedia What does it take to be a great artist?

Richard Russo evokes this question near the end of his 2007 novel, Bridge of Sighs. In it, he chronicles Lou Lynch, Jr. (Lucy) and his friend Bobby Marconi, who grew up together in a small town in upstate New York. The two friends couldn’t be more different. In sixty years, Lucy has never left his hometown, but Bobby on the other hand, leaves as soon as he graduates high school, fleeing Thomaston never to return. He eventually becomes a world-famous artist and lives the rest of his life in Venice. After Bobby passes away, a reporter interviews Lucy to learn more about his friend’s childhood.

On Saturdays, the two friends took turns surfing in the back of Lou Sr.’s milk truck. The thrill came when the truck, turning unexpectedly, caused one or the other to lose his balance and crash into the side.  Unlike Lucy, who braced himself before turns, Bobby let go and even shut his eyes. In Lucy’s words, “Bobby wanted what was coming down the road to be a surprise, even if it meant he got hurt.”

In my previous post, I explained that entrepreneurs are similar to artists because they’re outsiders. In my opinion, Bobby’s behavior represents a willingness to be vulnerable, another trait that entrepreneurs and artists have in common.



Anthony Tjan, founder of the VC firm Cue Ball, calls vulnerability the defining trait of great entrepreneurs. He describes it this way:

Active vulnerability comes from engaging in a contemplated risk that considers and hopes for the payoff, financial or otherwise, that will be worth the effort. Active vulnerability is in essence proactive and informed risk-taking.

I describe entrepreneurial vulnerability differently.

An entrepreneur’s work, like that of an artist, is a form of self-expression. When painting, an artist injects her canvas with her beliefs and values — knowingly or unknowingly — and the completed painting becomes an extension of herself. Likewise, when an entrepreneur founds a company, she imbues it with her opinion of how the world ought to be. It, too, springs from her deepest yearnings, making it unique and personal. There is no guarantee that the audience or market will accept her work. Vulnerability, then, is the willingness to reveal one’s true self and risk misunderstanding, ridicule, and even rejection.

At the core of human experience is a longing to be accepted. Some people, to satisfy this innate desire, conform to the norms around them, but in the process, compromise a part of themselves. Other people, the misfits, resist the temptation to fit in and remain true to themselves. As exhausting and demoralizing as it can be, the misfits’ willingness to defy norms gives life its nuance and beauty.

Dan Pallotta explains where this strength comes from:

To embrace the misfit in oneself is to be vulnerable. It is to forsake the easy acceptance that comes with fitting in and to instead be fortified by a kind of love, really. A love of life, a love of wonder, and, ultimately, a sustaining love for oneself. Far from egoism, that love for oneself is a measure of one’s love for others, for humanity. And it is only from love that great ideas can be born.

The greatest artists, entrepreneurs, and leaders don’t seek acceptance. Instead, their love and compassion fuel a yearning to make a ding in the universe and persevere despite rejection.

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