GEORGE TOWN, Oct 31 — The Penang Island City Council (MBPP) will close 54 illegal hotels on the island from tomorrow onwards.
These hotels, consisting of 41 old and 13 newly opened ones, have not applied for temporary permits during the last three years of the licensing process for unlicensed hotels in the state.
State executive councillor Chow Kon Yeow said these hotels have ignored the whole three years of licensing process for hotels.
“They will not be given temporary permits after this, but they will need to apply for licence by submitting their building plans, planning permission and be required to comply with the George Town Special Area Plan if they are in George Town,” he said.
All hotels without licences or temporary permits will be closed down by MBPP.
As for hotels, including guesthouses, with temporary permits, they have been given another year to apply for full licences.
“There are 111 existing hotels with temporary permits and only 49 had applied for full licences while the 62 have yet to submit their applications,” he said.
The 62 are given another year’s reprieve to extend their temporary permits for another year until October 31, 2017, pending their application to get permanent licences.
“Contrary to their claims that we are trying to ‘kill’ the industry, we have continued to give them chances to submit their applications,” he said.
He also said the council had taken into account the complaints on contributions for carpark and they have reduced it to one to two carparks for each premises.
There are now a total of 179 old and 75 new hotels in the state, out of which 124 are within the heritage zone.
Only 12 old and new hotels have obtained full licences, while 99 have submitted their application for the licences.
The Penang state government started the licensing process for illegal hotels in the state three years ago.
All hotels are required to apply for temporary permits first before they ensure compliance with all local bylaws and submit applications for full licences.
“While we admire their entrepreneurial spirit in opening these businesses, I want to advise them to comply and adhere to the law when they embark on their business,” Chow tells the hotel operators.
Last few weeks, about 70 illegal hotel operators, most with temporary permits that expire today, have gone up in arms against the state government for threatening action against them after their permits expired.
They had demanded for extension and also more lenient guidelines for them to apply for full licences.
