KUALA LUMPUR (Nov 19): Malaysia’s short-term rental accommodation (STRA) industry requires “fair and balanced” regulations to ensure its growth is not stifled while addressing concerns raised by traditional hotel operators, according to Airbnb.

There is a need for the industry to have regulatory clarity that does not hinder the sector's potential, especially as it plays an increasingly significant role in driving tourism, Airbnb’s Asia-Pacific public policy director Mich Goh said during the roundtable discussion on Malaysia's tourism growth.

“We agree that some level of regulation is important, but it's [also] important to make sure that these are fair and balanced regulations, so that they [the regulations] do what they [are] intended to do without necessarily hampering the growth of the industry,” Mich said.

The call for fair and balanced regulations on the STRA industry came amid urges from the hotel sector for stricter rules on the industry, especially on its pricing and safety standards, among others.

Earlier in June, Airbnb introduced a framework guide, dubbed Guide to Responsible Hosting in Buildings, designed to help strata hosts, property managers and management bodies operate STRAs responsibly.

Airbnb also partnered with legal firm Zaid Ibrahim & Co, in association with KPMG Law, in developing reference building by-laws aimed at equipping condominiums and apartment buildings with suggestions to ease the management of their STRA activities.

“The adoption of clear STRA guidelines is crucial to fostering a dynamic and innovative tourism sector," Zaid Ibrahim & Co partner Mohamad Izahar Mohamad Izham said.

“As Malaysia assumes the chairmanship for Asean in 2025, spearheading initiatives such as the upcoming national STRA guidelines will play a pivotal role in strengthening public-private partnerships, ensuring greater clarity and confidence for hosts, guests and stakeholders alike,” Izahar added.

For the first half of 2024, Airbnb has reported a 30% year-on-year increase in nights booked in Malaysia. Kuala Lumpur was ranked as the second most visited city in Southeast Asia during the period, while domestic travellers favoured destinations like Johor Bahru, Petaling Jaya, Penang and Malacca.

Malaysia has allocated RM550 million to promote tourism ahead of Visit Malaysia Year 2026. The government aims to attract international visitors while encouraging sustainable and diversified tourism practices.

"As we look ahead to Visit Malaysia Year 2026 and beyond, we believe that short-term rental accommodations and Airbnb’s community of hosts and guests will be instrumental in driving further growth in Malaysian tourism," Mich said.

"We eagerly anticipate the swift introduction of national STRA guidelines that will empower Malaysians to continue sharing their homes and enable visitors to discover unique stays that cater to their needs without excessive barriers,” she added.