GEORGE TOWN (Oct 23): The Penang government has amended several provisions of the Private Short-term Accommodation By-Laws 2026, including increasing the maximum room limit to 10 from five previously and reducing fees, with changes taking effect on Jan 1, 2027.

State Local Government and Town and Country Planning Committee chairman H’ng Mooi Lye said the amendments were made following feedback from operators and stakeholders after the by-laws came into force on Aug 1.

He said the amendments aimed to ensure that the interests of all parties, particularly local residents, continued to be protected, while clarifying the regulatory mechanisms governing the operation of private lodging premises in the state.

Key amendments include the introduction of a fixed annual licence fee of RM500 for each unit, compared with the previous annual fee of RM1,000 for units with up to three rooms.

The annual fees have also been restructured according to the number of rooms, at RM400 for one room, RM600 for two rooms, RM800 for three rooms, RM1,000 for four rooms and RM1,800 for premises with five to 10 rooms.

H’ng said the new fee structure would lower charges for premises with one to four rooms while ensuring that the rates were more reasonable in relation to the scale of operations.

He said the definition of private short-term accommodation had also been clarified to distinguish such premises from hotels based on their nature, use and actual operating arrangements, thereby preventing hotel operators from reclassifying their premises to avoid licensing requirements.

He said the amendments were approved at the State Executive Council meeting on Oct 19 and were now undergoing the gazettement process.

Their implementation from Jan 1, 2027 would also give relevant parties time to prepare, while the two local authorities, namely Penang Island City Council (MBPP) and Seberang Perai City Council (MBSP), could refine their guidelines and operating procedures.

He stressed that the amendments did not mean the state government was relaxing its regulatory oversight, as operators would still be required to comply with the applicable licensing conditions and regulations.

Meanwhile, Penang Malaysia Homestay/Short-Stay Operators Association chairman Lydia Tan welcomed the amendments, particularly the reduction in fees, and expressed appreciation for the state government's willingness to listen to industry feedback.

She hoped dialogue between the association and the state government could continue.

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