By Rosli Mansor Ahmad Razali
As Malaysia gears up for Visit Malaysia Year 2026 (VMY2026), the nation faces a pressing challenge that could undermine the image and future of its tourism industry.
The threat stems from the unchecked rise of unlicensed short-term rental accommodations (STRA), increasingly promoted on digital platforms and social media.
The Malaysia Budget and Business Hotel Association (MyBHA) has long raised the alarm, but the issue remains unresolved.
MyBHA warned that if the government continues to delay decisive action, the credibility of VMY2026 could be jeopardised, sending a negative signal to international tourists about Malaysia’s ability to uphold safety, fairness, and proper regulations in the hospitality sector.
These unlicensed operators not only hurt legitimate hoteliers but also put travellers at risk. Without adherence to safety standards, visitors face threats such as fire hazards, theft, fraud, and disturbances to local communities, while the government loses vital tax revenue.
The situation is worsened by digital platforms and online travel agencies (OTAs), which continue to profit from listing illegal accommodations, further eroding Malaysia’s tourism ecosystem.
MyBHA President Dr Sri Ganesh Michiel stressed that Malaysia must not allow illegal operators to profit from a national tourism campaign funded by the government, while licensed hotels shoulder the burden of compliance, taxes, and inspections.
“This situation punishes the honest and rewards the dishonest, sending a damaging message to the tourism industry and tarnishing Malaysia’s international reputation. Lessons from countries such as Singapore, New York, Tokyo, and Amsterdam clearly show the need for strict regulations on STRA. Malaysia cannot afford to fall behind,” he said.
He added that the government should urgently establish an inter-ministerial task force and empower local authorities to clamp down on illegal operators without compromise.
This editorial holds the view that Malaysia must introduce specific legislation and enforce strict measures against unlicensed accommodation.
Otherwise, the investments and aspirations for VMY2026 to become a catalyst for the revival of tourism will be at risk.
