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Friday, 23 October 2026

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Penang Has Cut Short-Stay Fees. It Has Not Removed the Hardest Rules

Penang is reducing short-term accommodation licensing fees, offering relief to smaller operators. But cheaper licences do not remove property restrictions or residential concerns. The real challenge is creating fair rules that support tourism businesses while protecting communities.

By Katherine (Kay)3 min read

George Town, 23 October 2026 – Penang is making changes to its private short-term accommodation regulations, reducing licensing costs and offering greater flexibility to smaller operators.

The state announced revised fees on 23 October, following approval by its executive council earlier in the week. Under the proposed amendments, the basic annual licensing fee will fall from RM1,000 to RM500.

A separate tiered fee structure will also reduce charges for smaller accommodation premises, while the maximum permitted number of rooms will increase from five to ten, subject to local authority conditions.

The changes could ease operating costs for legitimate accommodation businesses. But cheaper licensing does not necessarily mean easier access to the market.

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Author

  • Kay like to explores the intersection of money, power, and the curious humans behind them. With a flair for storytelling and a soft spot for market drama, she brings a fresh and sharp voice to Southeast Asia’s business scene.
    Her work blends analysis with narrative, turning headlines into human stories that cut through the noise. Whether unpacking boardroom maneuvers, policy shifts, or the personalities shaping regional markets, Kay offers readers a perspective that is both insightful and relatable — always with a touch of wit.