GEORGE TOWN, Nov 4 — Illegal hotel operators who persist in running their businesses without permits from the local council will soon be hauled to court, Penang state executive councillor Chow Kon Yeow cautioned today.
Currently, there are a total 221 illegal hotels on the island including 30 newly opened ones.
“We will continue with the legalisation exercise and encourage the operators to apply for full licenses for now, failing which we will charge them with the Town and Country Planning Act,” Chow said.
Out of the 221 illegal hotels, 191 are existing ones listed in the local council’s legalisation exercise.
Three out of the 191 hotels have been recently issued their full licenses with four more in the process of obtaining their licenses.
Another 50 hotel operators, out of the total 221 hotels, have also submitted applications for full licenses, said Chow.
The Penang Island City Council (MBPP) have conducted several enforcement exercise to shut down illegal hotels on the island in the past few weeks but some have stubbornly reopened.
Chow said the council is compiling a list of those that refused to apply for permits and had remained open despite being illegal to be taken to court.
The illegal hotel operators can be charged under Section 27 and 28 of the Town and Country Planning Act for not applying for planning permission and for breaching the planning permission.
Those charged in court are liable to be fined between RM50,000 and RM500,000 or two years’ jail if they fail to pay the fine imposed.
It is learnt that the city council have already compiled a list of 12 illegal hotel operators who may be brought to court soon.
Chow said the process of applying for a full license may be tedious and could cost up to RM100,000 due to consultant and architect fees they have to fork out in the process.
“The RM100,000 is not paid to the council but to the various consultants they have to engage for the application process and these are part of the business costs they have to consider when they want to open a hotel,” he said when visiting one of the fully licensed hotels in George Town, Spices Hotel along Lumut Lane.
He added that previously, a number of hotels were unable to get licenses as they could not fulfil the parking lots requirements.
“It is understandable that some hotels could not provide parking lots such as Spices Hotel because they do not have the space so we allow applicants to pay a RM25,000 carpark contribution in lieu of building carpark lots for each hotel,” he said.
He said the RM25,000 contribution to the city council will be used to build more carpark facilities around the island such as the multi-storey carpark at Union Street, Victoria Street, Hutton Lane and the yet-to-be completed one at Chowrasta Market.
After the council started its enforcement exercise, a total 15 newly opened ones have already closed down.
Chow said the others can still apply for temporary annual permits at RM7,200 per annum.
