GEORGE TOWN, Oct 13 ― Unlicensed hotel operators here are demanding the state government extend a temporary amnesty for them to bring the operations into compliance.
The operators from about 70 guest houses also want the state government to license them as “guest houses” or “city stay” locations rather than hotels.
“We find the state government is financially burdening us by imposing exorbitant temporary permit fees on us when guest houses commonly operate less than 10 rooms at reasonable prices so we are already struggling to make ends meet,” said one of them, Tony Yeoh Chee Yong.
He also said the state's requirements for hotels to obtain licences were too stringent and costly for guest houses to comply with.
Yeoh said they are unable to pay the provisional licence fee of RM7,200 a year and could not afford to hire architects to submit their building plans to the local authorities.
“Many of us, if not all, are unable to comply with the requirements and now run the risk of closure by the Penang state enforcement agency,” he said.
He said there are about 200 guest houses in Penang that are operating under temporary operating permits, and claimed that over half would be shuttered once the enforcement resumes.
He claimed the state government's licensing programme for illegal hotels are flawed as it did not take into considerations the issues that guest houses faced.
The group had gathered a petition signed by 36 operators and submitted it to state exco Chow Kon Yeow in March, and met with him after.
“The meeting went well but later we saw, the state leaders have once again let us down when they announced that all guest houses that fail to comply with their existing laws will be forced to cease operations,” he said.
The group proposed that the state authorities come up with an inclusive strategy to resolve this issue.
“They can allow us to continue operations and in the meantime, collect temporary licences at RM2,400 per annum,” he said.
He said the state should also consider working with the tourism board to issue lodging licences for guest houses and city stays.
“Guest house operators will also form an association to carry out our activities officially,” he said.
It was earlier announced that all illegal hotels that have not obtained licences will have to cease operations by end of this month.
Chow had said strict enforcement actions will be taken to close down illegal operators.
