LANGKAWI hoteliers are not feeling the rise in tourist arrivals, especially during peak seasons, despite higher numbers each year.

They told The Malaysian Insight that hotel reservations remained low, aggravated by those who prefer to book rooms via property renting app Airbnb.

Malaysian Association of Hotels’ (MAH) Kedah/Perlis chapter chairman Eugene Dass said this year, hotels in Langkawi only achieved 60% capacity.

“In contrast, occupancy rates reached 70%-80% or more in previous Decembers. Now, we are seeing more vacant rooms,” he said, adding the trend has become more pronounced in the past five years.

This issue is not just in Langkawi, with MAH last month reporting average occupancy rates between January and September this year fell 4.75% for hotels nationwide compared with the same period last year.

This is despite a 4.9% increase in tourist arrivals from August.

Airbnb is an online platform that connects travellers with homeowners renting out rooms and apartment units.

Due to Airbnb’s convenience, coupled with lodging offerings with localised flavour, hoteliers have taken a hit.

Reviews on the app showed more than 300 rooms or residential units registered in Langkawi, offering accommodation between RM50 and RM300 a night.

They range from homesteads to serviced apartments and bungalows.

According to Langkawi Development Authority (Lada), 3.68 million tourists visited Langkawi last year. That was an increase from 3.67 million in 2017 and 3.63 million in 2016.

Dass said while there is no data on the number of travellers choosing Airbnb, there is a correlation between the app’s increasing popularity and dwindling hotel bookings over the past three years.

“We do not want to stop tourists (from choosing Airbnb or a hotel).

“We can only hope the government will regulate the industry and issue licences to Airbnb operators to ensure the safety and comfort of travellers.

“If something bad happens, it will affect the tourism industry in Langkawi.”

Among the safety aspects, he said are lack of security cameras and fire prevention equipment.

“There are (some houses for rent) that do not follow fire safety specifications.”

Unlike hotels that are subject to business licences and operating taxes by local authorities, those renting out accommodation through Airbnb do not need to be registered with any government agency.

Earlier this year, Tourism, Arts and Culture Minister Mohammadin Ketapi had warned unlicensed people against providing accommodation to tourists.

The ministry had also set up a special task force to look into regulating Airbnb services and a decision on the study is expected to be announced early next year.

In welcoming this move, Dass said anyone or company providing accommodation services should be regulated, just as hoteliers are.

“We have asked the government to regulate Airbnb services and impose taxes on them.”

He said potential revenue from taxing Airbnb operators can generate some RM8 million for the government, based on a national hotel industry survey.

Meanwhile, Langkawi Tourism Industry Association president Ahmad Phisol Ishak said the hospitality industry and travel agencies have suffered a 30% drop in business in the last five years following the popularity of Airbnb, as well as countryside accommodation offering travellers a more “authentic experience”.

He said the village experience is a tourist attraction in Langkawi and those providing such accommodations should be registered under the local authority.

“Hotels are taxed but Airbnb operators are not. This creates extreme competition.

“Some of these homestays offer car rental services to attract tourists, but they don’t have (business) permits.”

He hoped the authorities would set clear definitions of such village properties so they could be distinguished from hotels.

“Ideally, homestays should have a host and offer village activities.

“But the concept is practiced only on Tuba Island. The rest just rent out houses daily.” – December 15, 2019.