Illegal Budget Hotels Mushrooming

October 29, 2011 at 12:00 pm

A recent article highlighted that nearly half of Malaysia’s 6,000 budget hotels are operating illegally. What’s more, the illegality of the hotels does not stop their popularity as many of these illegal hotels receive many local and international tourists daily. According to the report, most tourists are not aware that the hotels are actually illegal. This leads to an interesting thought, how many tourists actually bother checking about whether the hotels they stay in are actually legal or not?

How can tourists differentiate between a real budget hotel like Coliseum Hotel and an illegal one?

By and large, most tourists who use budget hotels are travellers who are ready to rough it out and are pretty independent. They are also perhaps used to more rugged conditions and are more focused on budgetary concerns rather than legalities. The upside of this is that they do actually stretch their funds, but the downside is of course, the inability of receiving any compensation in the event of a fire or a break-in.

So, perhaps it is better to check whether the budget hotel you stay at is actually legal or not the next time you go on a trip.

Read the full article below:
Malaysia has about 6,000 budget hotels nationwide, half of which are operating illegally, Nanyang Siang Pau reported.

According to the legal operators, the illegal ones receive many local and international tourists daily, it reported.

However, the tourists aren’t aware that they are staying at illegal hotels.

They would be unable to receive any compensation in the event of a fire or break-in as the hotels were operating illegally, it reported.

The illegal hotels are mushrooming as operators needed only about RM500,000 to build one and they break even in two years’ time or less.

Source: The Star

Photo (c) goosmurf

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