Cheaper, non-taxed Airbnb pushing us out of business, say budget hotel owners

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Budget hotels say they are losing to Airbnb operators who do not have to pay taxes imposed on hotel operators.

PETALING JAYA: Budget hotel operators have warned that they would be forced to shut down their businesses as they battle stiff competition from global online accommodation booking service, Airbnb.

It said operators have been forced to reduce staff to cut down overheads, adding that 10 budget hotels had ceased operating in Kuala Lumpur in 2017. “Of course we cannot compete in terms of price with them. We are losing money,” the association’s president PK Leong told FMT.Leong said the once flourishing business started taking a nose dive in 2013 when Airbnb started gaining popularity in Malaysia as it was even cheaper than budget hotels.

“They are enjoying the benefits while we have to pay for every single thing. It makes more sense for us to close down our commercial premises and run Airbnb too,” he said.

 

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