Budget hotels are hoping that an app will help them to counter the increasing popularity of Airbnb accommodation online travel agencies.

According to Malaysian Budget Hotel Association, the app is being developed “with the cooperation of the Tourism, Arts and Culture Ministry as part of an effort to promote Visit Malaysia 2020”.

The app will provide choices “from a package of hotels and facilitate visits to places of interest”.

Online travel agencies and Airbnb “had disrupted the hotel business, causing budget hotel occupancy to drop by up to 30% in Kuala Lumpur alone”.

The Malaysia Productivity Corporation and several other stakeholders are undertaking a public consultation exercise on a draft guideline to regulate ShortTerm Residential Accommodation (STRA) activities on digital platforms, including Airbnb, Agoda and Booking.com.

The guideline is a collaborative effort by a technical working group, co-chaired by the Department of Local Government, the Ministry of Tourism, Arts and Culture, facilitated by the MPC and involving several relevant stakeholders.

The draft guideline has six components, which covers the licensing of hosts and agents, licensing of platforms, number of days that the STRA can operate, fire safety requirement, managing public nuisance and taxation.