The number of illegal operators in the state was believed to be substantial and continuing to grow due to weak enforcement and loopholes in existing regulations.
PETALING JAYA: Hotel operators in Pahang are up in arms over weak enforcement against illegal accommodation providers, saying licensed hotels are being forced to comply with strict regulations while many unregulated operators continue to operate openly.
The Malaysia Budget & Business Hotel Association (MyBHA) Pahang chapter said the growing number of illegal accommodation providers and unregulated short-term rental accommodation (STRA) units was creating unfair competition within the tourism industry.
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“However, many illegal accommodation providers continue operating openly without being subjected to the same level of enforcement,” MyBHA Pahang chairman Datuk Sri K. Vijayendren told theSun.
He added that the number of illegal operators in the state was believed to be substantial and continuing to grow due to weak enforcement and loopholes in existing regulations.
“You may view the booking portals, for example, in Genting,” he said, referring to the large number of STRA units or unlicensed accommodation listings being advertised online.
Vijayendren said licensed hotels are required to comply with hotel enactments, safety standards, staffing obligations, taxation requirements and various local authority regulations.
He questioned the purpose of having hotel enactments and tourism regulations if illegal accommodation providers were still allowed to operate without proper enforcement action.
He said regulated STRA units and community-based accommodation could contribute positively to the tourism sector, but all operators must comply with properly enforced legal requirements.
“The industry continues to face various threats and challenges, including rising operational costs, manpower shortages, global economic uncertainties, digitalisation challenges, cybersecurity risks, and increasing unfair competition from illegal and unregulated accommodation operators,” he said.
Vijayendren also raised concerns over tourism-related bureaucracy and last-minute event cancellations, saying they could affect hotel bookings, local businesses and tourist confidence.
“When an event is cancelled at the very last minute, it not only affects the organisers, but also directly impacts hotel bookings, local businesses, transport operators and tourists’ confidence in the destination itself.
“The industry requires stronger coordination, clearer approvals and more consistent planning,” he said.
He said tourism hotspots such as Cherating and Pulau Tioman required stronger destination management. Among the issues highlighted were tourism promotion, infrastructure, ferry transportation, travel costs, cleanliness and maintenance.
Vijayendren described Cherating as a once well-known international beach tourism destination that now requires renewed focus in terms of branding, products, events and visitor experiences.
He added that Pulau Tioman continues to face challenges involving ferry services, basic infrastructure and maintenance issues that still need to be addressed.
Vijayendren said tourism planning should place greater emphasis on visitor experience, destination quality and sustainable tourism development.
“People who have lived in a destination for a long time may feel comfortable with existing conditions and assume everything is adequate, while outsiders and visitors are often better able to identify weaknesses and areas for improvement that may not be visible to locals,” he said.
He also called for greater transparency involving the Fi Kelestarian Pahang sustainability fee, which imposes a RM3 per room, per night charge on hotel guests, saying the collections should be channelled back into tourism infrastructure, cleanliness, safety and destination improvements.
“Pahang must continue adapting to changing tourism trends to remain competitive both domestically and internationally,” he said.
On April 6, Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi announced that the Visit Malaysia Year 2026 campaign would be extended until the end of 2027 due to global tourism uncertainties and the impact of the West Asia conflict on international travel flows.
