The Penang government has allowed guesthouse operators with temporary licences, who face closure by today for not complying with local council laws, one year from now to renew their permits.

Those operating illegally should try to apply for licences by complying with the requirements of the Penang Island City Council (MBPP) or George Town Heritage Special Area Plan (SAP) for those located within the Unesco site by the Oct 31, 2017 deadline.

The decision comes after a group of disgruntled guesthouse operators handed a memorandum to Tourism Minister Nazri Mohamed Aziz in Penang on Oct 17, complaining that they could not afford to comply with MBPP’s requirements.

But Nazri told them that they must obey local council laws before starting their businesses, as this also involved the safety and security of tourists.

The operators also staged a protest on Stewart Lane to express their grievances about the “strict and costly” MBPP laws' which would render their closure by today.

Penang executive councillor Chow Kon Yeow (photo) said the State Planning Committee during its meeting on Oct 27 had approved the MBPP’s guesthouse moratorium programme.

Chow said the operators would be given time to submit an application for planning approval and a building plan to the MBPP, as they were required to do so before Oct 31 this year.

These two items allow the operators to apply for permanent licences to run their guesthouses in George Town.

Chow denied that the Penang government was out to destroy the guesthouse business.

“If we wanted to do that, we could have just demolished the buildings, which is why we are implementing this programme to legalise the business,” Chow said at a press conference today.

“To all those who want to start businesses, please comply with all the requirements by MBPP before you start.”

'This is the final extension'

Chow said this is the third and final extension and MBPP would not allow another extension as ample time has been given the guesthouse operators to comply with MBPP’s requirements.

He added that for now, the MBPP would only renew the permits and will not approve anymore new permits. Those without temporary licences would not be given one.

“Those without any licences must submit their building plans or applications for planning approval and must comply with the George Town World Heritage Special Area Plan (SAP),” said Chow, who is also state DAP chief.

“Action will be taken against those without any temporary permits to run the guesthouses (for the period Nov 1, this year to Oct 31, 2017),” Chow warned.

“The actions include demolition of such guesthouses or court action initiated by MBPP, as this group of operators have ignored our gestures to get them temporary or permanent licences,” said the Padang Kota assemblyperson.

Chow said the MBPP had considered the operators' complaints of not being able to afford the provision of car parks within their premises.

He added that MBPP had decided to allow each guesthouse to have two car park lots to satisfy the council’s requirements.

He said the MBPP also allows payment for car park lots to be made on a one-year instalment from the date the temporary licences are approved.

“Before any applications are submitted to the MBPP, guesthouse operators and their architects are invited to consult the state Heritage Conservation Department and Fire and Rescue Department so that their requirements can be complied with,” Chow said.

He also produced statistics to show that 54 unlicensed guesthouses (41 old and 13 new) would be shut down tomorrow as they have yet to apply for temporary permits in the last three years.

As of now, out of 111 premises, 49 have applied for permanent licences while the 62 have yet to submit their applications.

The 62 have been given one more year to apply for their licences.

On the number of guesthouses within the city’s heritage zone, there are 124 out of a total of 179 old ones, and 75 new.

While 99 have applied for licences, only 12 old and new hotels have been given permanent licences, Chow said.