Ipoh, Malaysia, is embarking on ambitious plans to bolster its hospitality sector, with local officials setting their eyes on registering 1,000 hotels by June 30, 2025, before the new regulations come fully enforceable. Perak State Executive Councillor for Housing and Local Government, Huang Shiqing, announced this target during her recent visits to various hotels within the city.
Huang highlighted the importance of this registration process, noting, "The state government is targeting to complete the registration of 1,000 hotels before the grace period ends on June 30 of this year." Currently, 700 hotels from five different categories have achieved registration, though some still hold temporary licenses.
The local government is actively encouraging all operators, particularly for types of accommodations like hostels, homestays, and campsites, which have previously lacked clear regulatory guidelines. There are already at least 60 applications from this fifth category, indicating positive growth as businesses adapt to the regulatory changes, according to Huang.
Huang’s comments follow the implementation of the 2023 Perak Hotel Ordinance, which states, "No unit should operate hotels without obtaining the formal license from the local government." This ordinance aims to streamline the operations of hospitality establishments and improve overall standards.
For those remaining businesses still without registration, the countdown to compliance has officially begun, emphasizing the need for expediency among hotel operators to apply for their respective licenses. Huang remarked on the looming enforcement actions by the local government, stating, "Once the grace period ends, local authorities will commence enforcement actions against non-compliant establishments. Therefore, business operators are prompted to apply for their licenses without delay."
Another significant initiative tied to the hotel registration is the introduction of the local service fee (CPT), set to take effect on January 1, 2025. All hotels will be required to charge guests RM3 per room per night, marking the first time this fee is being systematically collected. Huang pointed out, "From January 2025, every hotel will need to charge a fee of RM3 per night per room," adding transparency to the expenses guests can expect during their stays.
To facilitate ease for travelers, hotels approved to collect this new fee must display their operating licenses and CPT notification prominently, be it through physical signage, QR codes, or other appropriate means. Huang also mentioned the state government’s intention to innovate the process by considering establishing an integrated online system to simplify payment methods and improve data management.
Since the beginning of the implementation of the 2023 Perak Hotel Ordinance, records show approximately 160,000 legal stays at registered hotels. "This number reflects on school holidays and festive seasons, but more fundamentally, it indicates the growing recognition of the Perak government's commitment to creating safe tourism policies," Huang noted.
At the press conference, held after Huang's visits to three of the hotels, various local leaders were present, including Ipoh Mayor Dato' Rumaiz, high-ranking officials from the Local Government Economic Planning Unit, and others from the state treasury. Their attendance underscored the collective efforts being made to uphold the ordinance and contribute to the local economy.
On another note, Huang announced stern measures against local vendors at Ramadan bazaars who illegally rent out stalls to foreigners. She stated, "According to local government regulations, local vendors are strictly prohibited from renting or leasing out their stalls to foreigners during the Ramadan market, and violators will face penalties." The compliance measures aim to protect local enterprises and maintain the integrity of community markets.
The coming months will be pivotal for Ipoh's hospitality sector as it strives to achieve the ambitious yet necessary goal of registering 1,000 hotels within the newly established guidelines. The focus will be not only on increasing registrations but also on ensuring compliance to enjoy the benefits of orderly development and sustainable tourism practices in Perak.