The plan would risk derailing economic recovery efforts, damage Penangites’ livelihood and put jobs at risk “at an incredibly critical juncture”, said Mich Goh, who is the Airbnb head of public policy, Southeast Asia, India, Hong Kong, and Taiwan.

“With tourism playing such a crucial role in Penang’s economy, imposing such ill-considered restrictions on short-term rental accommodation (STRA) in highrise residential buildings would negatively impact the state’s recovery momentum and long-term tourism growth,” Goh said.

The plan would make it harder for the state to remain competitive and attract tourists, he added.

In its own survey, Airbnb claimed that 60% of Penangites believe that STRA increases tourism revenue.

The survey also found that 80% of Penangites agree that using surplus vacant apartments for short-term rentals helps combat the property overhang.

Goh suggested that the government let individual Joint Management Bodies (JMBs) and Management Corporations (MCs) decide on whether to enact additional STRA by-laws or restrictions.

“This empowers residents to decide if and how STRA should be run in their buildings,” he said.

Yesterday, state executive councillor Jagdeep Singh Deo, who is the housing committee chairman, said the homestay ban would manifest in the form of a “guideline”, which will be passed to local councils for enforcement.

He added that though the starting date for the ban had not been decided, the state government has agreed with the plan, based on the numerous complaints from residents’ groups at apartments, condominiums and residential neighbourhoods.