Hotelier Khoo Boo Lim (above) has "rescued" tourists who faced bad deals with illegal hotels in the state, saying such incidents tarnish the good name of the tourism industry in Penang.
Last month, he offered a Spanish family complimentary rooms in the hotel where he serves as general manager, after they had a bad experience with an Airbnb accomodation.
The incident came to light when it was reported in a local website, Penanghyperlocal.com.
Airbnb is an online hospitality service brokerage company based in the United States, and is a popular site for those seeking affordable accommodation.
Khoo also has had to deal with other complaints which were directed to him by the Penang government.
Khoo, who is Malaysian Association of Hotels (Penang branch) (MAH) chairperson, laments that Airbnb accommodation and illegal hotel operators have a negative impact on occupancy rates in licensed hotels.
A solution seems to be on the cards, according to the Penang government, but according to Khoo, despite the promises made, nothing has been done so far.
In an interview with Malaysiakini, Khoo said tourists attracted by Airbnb and illegal hotels is unavoidable with the mushrooming of new technologies.
"However, we want the government to step in and regulate them, as this is only fair," Khoo said.
"To open a hotel, we go through a massive process. We have to apply for various licenses and comply with many regulations," he added.
"For Airbnb and illegal hotels, one only has to have an apartment with aircond, promote it via internet, and viola, guests will start booking the rooms," he stressed.
"The situation is truly hurting us. It's not only a problem in Penang, but one that is nationwide, where MAH representatives in all the states are urging the government to step in and do something," he said.
On July 2, Airbnb general manager for Southeast Asia, Hong Kong and Taiwan Mike Orgill (above) said the company recorded 3.25 million guests in the last 12 months, a jump of 73 percent year-on-year.
He was quoted by Bernama as saying that Airbnb has 53,000 accommodation listings in Malaysia, and over six billion listings globally.
To this Khoo replied, "What is the point when the country is not benefitting from this?"
"The government put in so much effort to promote tourism, but these challenges continue to bog down licensed hotels which contribute a lot to the country via taxes," he said.
Khoo said the matter has been raised at the federal level, but it appears the ball is being "pushed from one court to the other."
When contacted, Penang executive councillor on tourism, art, culture and heritage Yeoh Soon Hin said he had met recently with the AirBnb representative in Komtar to discuss the matter.
"Airbnb is quite receptive towards working together on regulating short-term accommodation and integrating their platform with the regulatory requirements when the need arises," Yeoh told Malaysiakini.
"Data has shown that licensed accommodation receives a higher number of bookings as it tends to inspire more confidence among the consumers," he said.
"We would be able to look closely into how the regulatory framework can be implemented once it is released by the federal government," he added.
In February, the Tourism, Arts and Culture Ministry urged unlicensed hotel operators and those offering vacation rental services on Airbnb to register with the ministry to avoid legal action.
Minister Mohamaddin Ketapi had warned that delays in registering could subject the operators to stern action from the ministry and local authorities under the Tourism Industry Act (AIP) 1992. - Mkini
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