GEORGE TOWN, Jan 18 — The Penang Fire and Rescue Department says a large number of the island’s budget hotels have not met their safety standards, putting their guests and the public at risk. 

Records of local authorities show the island has 301 budget hotels but only 27 per cent have met all the requirements and are fully licenced to operate.

The department’s state chief, Azmi Tamat, made the startling revelation after a budget hotel in Lorong Bagan Luar 1 was destroyed in a blaze last week. The 30-year-old three-storey building which housed the hotel had earlier been found to be unsafe by the department. 

Azmi said many budget hotels were operating in modified and renovated structures in shop houses that were not designed to be hotels. 

“Many have failed to comply with the safety requirements to obtain the operating licences,” he told Malay Mail.

“These hotels should install fire alarms and exits to provide sufficient time for occupants to escape in case of an emergency.

“Some are also located along narrow roads in areas with high population density, creating traffic congestion when too many of their guests park in the area.” 

Of the 278 hotels under the Penang Island City Council, 79 are fully licenced while 163 have been issued with temporary operational licences (TOL) which will be upgraded to full licence after they have complied with all the requirements.

Another 36 unlicensed premises have been given until Oct 31 to apply for the full licence or the TOL.

Azmi said the department’s inspection and approval were among the requirements and hotels were subjected to their checks annually. 

“The licence is renewed annually. If they fail to comply with our requirements, they cannot get it,” he said.

He declined to disclose the exact number of budget hotels which have not complied with his department’s safety standards.

City council secretary Ang Aing Thye said the unlicensed hotels were initially given until Dec 31 last year to apply for licences but it was extended to give them more time to comply, especially on safety.  

He warned that the council would seize property in the premises and even demolish the buildings if they still failed to comply at the end of the grace period.

“Seizing property and demolition will be our last resort. But we would like to remind them the council will not compromise on safety standards,” he said.

The Seberang Perai Municipal Council has issued permanent operating licences to four budget hotels and TOL to 19 premises.

Council secretary Rozali Muhamad said temporary operating licences were issued to give the hotels enough time to comply with safety standards and other requirements.

“We will decide later on whether to issue them permanent licences after a thorough inspection of the premises,” he said.

It was reported last November Penang island authorities were imposing premium rates on hotel operators who had not applied for their licences. 

Hotels that submitted their applications before Nov 1 were required to pay RM2,400 but the rate triples for those who fail to do so. Illegal hotel operators have to pay RM9,600 — four times the regular rate.

Rozali said the council had found another 30 new hotels operating without licences, even after it had started to act against illegal premises.

A temporary permit costs RM4,800 for new hotels if they apply before November 1. Late applicants have to pay RM7,200.