An association of hotels and a group representing tour operators conflict with a new law intended to regulate visitor lodging in Perak.
The state law, which aims to treat hotels and other lodgings equally, will level the playing field for operators, according to Jimmy Leong, head of the Malaysian Tourist Guides' Council. He did, however, express skepticism over the effectiveness of the legislation's implementation, noting that it is "easier said than done."
Leong praised the law that makes permits for hotels and homestays a requirement, but he questioned how the government would punish people who disobey it.
The Perak Hotel Enactment 2023, which broadens the definition of "hotels" to encompass boarding homes, chalets, rest houses, tents, and houseboats and mandates their operation under a license, was the subject of his remarks.
The Perak government is now able to control these accommodations and impose charges thanks to a new law that was passed on May 23 and replaces the 96-year-old Boarding House Enactment 1927.
Leong cautioned against enacting a comparable rule at the federal level, claiming that doing so would subject operators to needless red tape.
The extended definition of "hotel" established by the Perak state assembly, according to Malaysian Budget and Business Hotels Association president Sri Ganesh Michiel, conflicts with current federal law.
"They cannot just change the definition of 'accommodation' because it is already contained in the Tourism Industry Act 1992. Because the services provided by each are different, you cannot treat a guesthouse the same as a hotel, he said.
"Accommodation premises" is defined in the Act as "any building, including hostels, hotels, inns, boarding houses, rest houses, and lodging houses, held out by a proprietor for lodging or sleeping accommodation to tourists."
According to Sri Ganesh, the new state law will ultimately force users to pay a greater share of higher prices as a result of operators being subjected to more taxes and levies.
Instead, he urged the government to simplify rules and crack down on unauthorized businesses to protect the future of the hospitality sector.