Short Term Rentals Not Under Us Says Sarawak Tourism Minister

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Sarawak’s tourism, creative industry and performing arts minister Abdul Karim Rahman Hamzah repeated a call for budget hotels not to raise rates as they were enjoying an increase in occupants.PETALING JAYA: Sarawak’s tourism, creative industry and performing arts minister Abdul Karim Rahman Hamzah said the regulation of online travel agents (OTAs) and short-term rental accommodations (STRA) is not under his ministry’s purview.
Karim said the tourism, arts and cultural ministry (Motac) issues licences or permits for travel agencies while the local government and housing ministry regulates STRAs.
“I don’t think my ministry is responsible for any perceived threats to those who run budget hotels here in Sarawak,” he was quoted as saying by The Borneo Post.
Karim reiterated his call for budget hotels not to raise rates, highlighting that operators are already profiting from increased visitor numbers to the state.
He assured budget hotels in Sarawak that his ministry would step in if issues with STRAs begin to significantly impact the tourism industry as his ministry is responsible for promoting visitor growth and ensuring a positive tourist experience.
Karim was responding to the Malaysian Budget and Business Hotel Association (MyBHA) which said on Saturday that budget hotels in Sarawak might consider raising their rates due to unresolved threats to the industry in the state.
In a statement, MyBHA president Sri Ganesh Michiel appealed to Karim for assistance after citing challenges faced by budget hotel operators.
Apart from competition from unlicensed accommodation providers, he also noted the unregulated conversions of residential units into short-term accommodations and advertised on online portals, and the lack of action against unlicensed operators.
MyBHA had previously warned of a 30-40% rate hike over the next three months because of various factors that had impacted operational costs. - FMT

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