Crackdown on unlicensed hotels in Penang tomorrow

In a bid to eradicate illegal hotels from operating in Penang, local councils will be taking action against these unlicensed businesses beginning tomorrow.

State local government committee chairman Chow Kon Yeow (pic) said there were a total of 194 unlicensed hotels in the state, with 168 located on the island and the rest on the mainland.

"Ninety-five operators had applied for licenses, which are now being processed, while 99 others had never submitted any application. Only 14, which were previously unlicensed, had obtained permits to operate from the local authorities,"

Chow said the 95 operators would get temporary licenses for a year from November 1 and operators have two months to accept the offer.

"However, these temporary licenses does not mean the operators are exempted from enforcement operations by authorities or agencies such as the police," he told a Press conference at Komtar today.

The remaining 99 operators, who never submitted applications for permit during the legitimisation period that began in January, have until December 31 to apply for the temporary licence.

Failing which, the unlicensed operators will have to face the music, Chow said.

"This goes for new hotels coming up too. New operators starting from tomorrow must first get their licenses from the councils before they can open their business."

New operators, who have no record with the local councils, Chow said, must get their papers all in order first.

He said the councils will also not entertain any applications for new hotels unless the operators already have approval to convert their premises for commercial use.

"They must bear mind that using a residential building as a hotel is not allowed. Even converting the building use is difficult.

"We hope all operators will respect the law," he said.

Chow said the statewide enforcement exercise by the Penang and Seberang Prai municipal councils against unlicensed hotels are also aimed at preventing problems that may affect the city's Unesco world heritage listing.

He said of 194 unlicensed hotels in Penang, 95 are located in the George Town Unesco heritage zone.

Asked if the illegal hotels would be shut down, Chow said the local councils have no power to do so.

"We may seize some of their equipment like mattresses or the cash registers," he said.

He said in Macau, tourists who are caught staying in unlicensed hotels or boarding houses can be fined.

"We want to contain this problem but we have not reached that stage yet to go after tourists," he said.

On whether too stringent regulations have caused some operators not to apply for permits, Chow said fire safety requirements cannot be compromised.

The MPPP has been trying to regulate the hotel business that has been booming in recent years following George Town's inscription as a Unesco world heritage city in 2008.

Heritage hotels, and small but trendy hostels have been mushrooming around town, opening in refurbished prewar shophouses.

Last month, Chow had warned unlicensed hotel operators that they could be slapped with a fine or even taken to court.

Apart from having no permit to operate, unlicensed hotel operators also face action if they had unlawfully converted their premises for business use, an offence under the Town and Country Planning Act that come with a RM500,000 fine, two years jail or both.

Renovating the buildings without the relevant approval from the council could also get the unlicensed operators a fine of up to RM50,000, three years jail or both.

Meanwhile, state tourism exco Danny Law Heng Kiang said by year-end, Penang will have an additional 1,000 hotel rooms, with three new hotels opening soon.

The number of new rooms is expected to double next year, he said.

He also said the state has collected RM570,000 in hotel levy in June, the first month the new tax was introduced.

In Penang, hotel guests pay a levy of RM3 per room per night at four- and five-star hotels, and RM2 per room per night at three-star hotels and below, including dormitories, budget hotels, hostels and guest houses.

The proceeds generated from the levy will be used to develop and promote tourism infrastructures in the state. – September 29, 2014.