Short-Term Rental in the Socioeconomic Aspect in Kuala Lumpur
Abstract
The rapid growth of short-term rentals, facilitated by platforms like Airbnb, has raised concerns about their effects on housing affordability, community dynamics, and the local economy. The effects are growing concern amongst the people since studies have found that short-term rentals have affected the local community and the local real estate economy. The first objective in this research is to identify the effects of short-term rentals on socioeconomic in Kuala Lumpur. The second objective is to investigate the most effective strategies to minimize the effects of short-term rentals on socioeconomic of Kuala Lumpur. The selected study area is Kuala Lumpur where short- term rentals listings are the most prominent at. A set of questionnaires was distributed to 102 respondents consisting of working ages participants from age of 18 until 70 years old. In addition, for the purpose of data analysis, quantitative method is adopted by using cross-tabulation analysis and mean comparison analysis. The findings of the study for the first objective shows that most of the respondents agree that short-term rentals are affecting the neighbourhood dynamics which causes concern among property owners and renters. Furthermore, for the second objective, respondents mostly agreed that the government should propose a licensing scheme to the property owners who wanted to opt for short- term rentals. Lastly, the key takeaway from this research is the implementation of strict rules and regulations on short-term rentals. Recommendations for policymakers and stakeholders are provided based on the research findings. This research contributes to the growing body of literature on the effects of short-term rentals on socioeconomic aspects, specifically in the context of Kuala Lumpur. It provides empirical evidence and insights that can inform decision-making processes and support the development of effective policies and strategies.
References
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Chen, Y., Ping, L., & Liang, F. (2020). Race to the Top: Collective Reputation Crisis and Firm Certification Behavior. Academy of Management Proceedings, 2020(1), 12947. https://doi.org/10.5465/ambpp.2020.136
Christy, V., & Tan, T. H. (2021). Understanding tenants’ motivations for co-living arrangements: A case study of klang valley, Malaysia. International Journal of Housing Markets and Analysis, 15(5), 1225–1241. https://doi.org/10.1108/ijhma-07-2021-0084
Coelho, M., Glaudemans, M., Marko, I., Mendes, L., Seixas, J., Lestegás, L., Dias, J. (2016). Stadslab European urban design laboratory Lisbon city-making & tourism gentrification: Master class 2016. Tilburg: Fontys School of Fine and Performing Arts, Stadslab European Urban Design Laboratory.
DiNatale, S., Lewis, R., & Parker, R. (2018). Short-term rentals in small cities in Oregon: Impacts and regulations. Land Use Policy, 79, 407–423. https://doi.org/10.1016/j.landusepol.2018.08.023
Dolnicar, S. (2019). A review of research into paid online peer-to-peer accommodation: Launching the Annals of Tourism Research curated collection on peer-to-peer accommodation. Annals of Tourism Research, 75, 248–264. https://doi.org/10.1016/j.annals.2019.02.003
Espinosa, T.P. (2016). The Cost of Sharing and the Common Law: How to Address the Negative Externalities of Home-Sharing. Chapman Law Review, 19, 597.
Furukawa, N., & Onuki, M. (2019). The design and effects of short-term rental regulation.
Current Issues in Tourism, 25(20), 3245–3260. https://doi.org/10.1080/13683500.2019.1638892
Garay, Lluis & Lladós-Masllorens, Josep & Meseguer-Artola, Antoni & Morales, Soledad. (2022). Analyzing the influence of short-term rental platforms on housing affordability in global urban destination neighborhoods. Tourism and Hospitality Research. 22. https://doi.org/146735842110575. 10.1177/14673584211057568
Garcia, B., Miller, K., & Morehouse, J. (2021, June 11). In Search of Peace and Quiet: The Heterogeneous Impacts of Short-Term Rentals on Housing Prices. The Center for
Growth and Opportunity. https://www.thecgo.org/research/in-search-of-peace-and-quiet-the- heterogeneous-impacts-of-short-term-rentals-on-housing-prices/
Garcia-López, M.-À., Jofre-Monseny, J., Martínez-Mazza, R., & Segú, M. (2020). Do short-term rental platforms affect housing markets? evidence from airbnb in Barcelona. Journal of Urban Economics, 119, 103278. https://doi.org/10.1016/j.jue.2020.103278
Grimmer, L., Vorobjovas-Pinta, O., & Massey, M. (2019). Regulating, then deregulating airbnb: The unique case of Tasmania (Australia). Annals of Tourism Research, 75, 304– 307. https://doi.org/10.1016/j.annals.2019.01.012
Guttentag, D., Smith, S., Potwarka, L., & Havitz, M. (2017). Why tourists choose airbnb: A motivation-based segmentation study. Journal of Travel Research, 57(3), 342–359. https://doi.org/10.1177/0047287517696980
Hatch, M. E. (2016). Statutory protection for renters: Classification of State landlord–tenant policy approaches. Housing Policy Debate, 27(1), 98–119. https://doi.org/10.1080/10511482.2016.1155073
Heylighen, F. (2017). Towards an intelligent network for matching offer and demand: From the sharing economy to the global brain. Technological Forecasting and Social Change, 114, 74–85. https://doi.org/10.1016/j.techfore.2016.02.004
Huang, Y., Chen, Y., & Tan, C. H. (2021). Regulating new digital market and its effects on the incumbent market: Investigation of online peer-to-peer short-term rental. Information & Management, 58(8), 103544. https://doi.org/10.1016/j.im.2021.103544
Huber, A. (2017). Theorising the dynamics of collaborative consumption practices: A comparison of peer-to-peer accommodation and cohousing. Environmental Innovation and Societal Transitions, 23, 53–69. https://doi.org/10.1016/j.eist.2016.12.001
Ignatius, C. (2023, January 22). Proposed short-term rental accommodation guidelines detrimental to Penang's tourism economy, growth. BusinessToday. Retrieved from https://www.businesstoday.com.my/2023/01/22/proposed-short-term-rental-accommodation-guidelines-detrimental-to-penangs-tourism-economy-growth/
Jefferson-Jones, J. (2016, January 13). Can short-term rental arrangements increase home values?: A case for airbnb and other home sharing arrangements. SSRN. Retrieved January 26, 2023, from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2714051
Kaplan, R.A., & Nadler, M.L. (2015). Airbnb: A Case Study in Occupancy Regulation and Taxation.
Katz, V. (2015). Regulating the Sharing Economy. Berkeley Technology Law Journal, 30(4), 1067. https://lawcat.berkeley.edu/record/1126844
Khotcharee, Q. & Fukushima, S. (2022). Emergence of peer-to-peer accommodation sharing in bangkok. Urban and Regional Planning Review, 9, 200–221. https://doi.org/10.14398/urpr.9.200
Lazim, M.S. (2020), “Evolution of migration for urban and rural”, available at www.dosm.gov.my/v1/uploads/files/6_Newsletter/Newsletter2020/DOSM_BPPD_4- 2020_Series-62.pdf
Lestegás, I., Seixas, J., & Lois-González, R.-C. (2019). Commodifying Lisbon: A study on the spatial concentration of short-term rentals. Social Sciences, 8(2), 33. https://doi.org/10.3390/socsci8020033
Lim Kian Fung and Ezdihar Hamzah. (2020). Guest’s Decision Making between Peer-To-Peer Accommodation and Hotel. 2nd Kuala Lumpur International Conference on Education, Economics and Technology (KLICEET 2020) eISBN: 978-967-2476-07-8 Kuala Lumpur, Malaysia.
Manganelli, B., Tataranna, S., & De Paola, P. (2020). A comparison of short-term and long- term rental market in an Italian city. Computational Science and Its Applications – ICCSA 2020, 884–898. https://doi.org/10.1007/978-3-030-58808-3_63
McKee, K., Soaita, A. M., & Hoolachan, J. (2019). ‘generation rent’ and the emotions of private renting: Self-worth, status and insecurity amongst low-income renters. Housing Studies, 35(8), 1468–1487. https://doi.org/10.1080/02673037.2019.1676400
Mohamad, N.E. and Murugesu, P. (2020), “Linkages between capital structure, property overhang and financial sustainability: evidence from property sector in Malaysia”, Global Business and Management Research: An International Journal, Vol. 12 No. 4, pp. 441-454.
Nieuwland, S., & van Melik, R. (2018). Regulating airbnb: How cities deal with perceived negative externalities of short-term rentals. Current Issues in Tourism, 23(7), 811–825. https://doi.org/10.1080/13683500.2018.1504899
Revilla, M. A., Saris, W. E., & Krosnick, J. A. (2014). Choosing the Number of Categories in Agree–Disagree Scales. Sociological Methods & Research, 43(1), 73–97. https://doi.org/10.1177/0049124113509605.
Sheppard, S., & Udell, A. (2016). Do Airbnb Properties Affect House Prices.Stienmetz, J. L., Liu, A., & Tussyadiah, I. P. (2020). Impact of perceived peer to peer accommodation development on community residents’ well-being. Current Issues in Tourism, 25(21), 3481–3499. https://doi.org/10.1080/13683500.2020.1797644
Su, S., He, S., Sun, C., Zhang, H., Hu, L., & Kang, M. (2021). Do landscape amenities impact private housing rental prices? A hierarchical hedonic modeling approach based on semantic and sentimental analysis of online housing advertisements across five Chinese megacities. Urban Forestry & Urban Greening, 58, 126968. https://doi.org/10.1016/j.ufug.2020.126968
Tussyadiah, I. P., & Zach, F. (2016). Identifying salient attributes of peer-to-peer accommodation experience. Journal of Travel & Tourism Marketing, 34(5), 636–652. https://doi.org/10.1080/10548408.2016.1209153
Van Doorn, L., Arnold, A., & Rapoport, E. (2019). In the age of cities: The impact of urbanisation on house prices and affordability. Hot Property, 3–13. https://doi.org/10.1007/978-3-030-11674-3_1
Varma, A., Jukic, N., Pestek, A., Shultz, C. J., & Nestorov, S. (2016). Airbnb: Exciting innovation or passing fad?. Tourism Management Perspectives, 20, 228-237.
Yeon, J., Kim, S. H. “J., Song, K., & Kim, J. (2020). Examining the impact of short-term rental regulation on peer-to-peer accommodation performance: A difference-in-differences approach. Current Issues in Tourism, 25(19), 3212–3224. https://doi.org/10.1080/13683500.2020.1814704
Yi Ven Low. (2020, October 17). Malaysia’s Blanket Ban on Short-Term Rentals: What are the odds?
Wachsmuth, D., & Weisler, A. (2018). Airbnb and the Rent Gap: Gentrification through the sharing economy. Environment and Planning A: Economy and Space, 50(6), 1147– 1170. https://doi.org/10.1177/0308518x18778038
Wakita, T., Ueshima, N., & Noguchi, H. (2012). Psychological distance between categories in the Likert scale. Educational and Psychological Measurement, 72(4), 533–546. https://doi.org/10.1177/0013164411431162
Wong, W. L., Lee, C., & Koong, S. S. (2019). Housing prices in Peninsular Malaysia: Supported by income, foreign inflow or speculation? International Journal of Housing Markets and Analysis, 12(3), 424–441. https://doi.org/10.1108/ijhma-01-2018-0001
Wrede, M. (2022). How Short-Term Rentals are Changing the Neighborhood. International Regional Science Review, 45(4), 417–443. https://doi.org/10.1177/01600176211059981
Zervas, G., Proserpio, D., & Byers, J. W. (2017). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of Marketing Research, 54(5), 687–705. https://doi.org/10.1509/jmr.15.0204
Zyed, Z. A. S., Yong, M. Y., & Tedong, P. A. (2020). Public users’ perception of Airbnb in Malaysia: Should we regulate? Property Management, 38(5), 627–642. https://
Benítez-Aurioles, B., & Tussyadiah, I. (2021). What airbnb does to the housing market. Annals of Tourism Research, 90, 103108. https://doi.org/10.1016/j.annals.2020.103108
Bilal, M., Meera, A. K., & Abdul Razak, D. (2019). Issues and challenges in contemporary affordable public housing schemes in Malaysia. International Journal of Housing Markets and Analysis, 12(6), 1004–1027. https://doi.org/10.1108/ijhma-11-2018-0091
Cocola-Gant, A., & Gago, A. (2019). Airbnb, buy-to-let investment and tourism-driven displacement: A case study in Lisbon. Environment and Planning A: Economy and Space, 53(7), 1671–1688. https://doi.org/10.1177/0308518x19869012
Chen, Y., Ping, L., & Liang, F. (2020). Race to the Top: Collective Reputation Crisis and Firm Certification Behavior. Academy of Management Proceedings, 2020(1), 12947. https://doi.org/10.5465/ambpp.2020.136
Christy, V., & Tan, T. H. (2021). Understanding tenants’ motivations for co-living arrangements: A case study of klang valley, Malaysia. International Journal of Housing Markets and Analysis, 15(5), 1225–1241. https://doi.org/10.1108/ijhma-07-2021-0084
Coelho, M., Glaudemans, M., Marko, I., Mendes, L., Seixas, J., Lestegás, L., Dias, J. (2016). Stadslab European urban design laboratory Lisbon city-making & tourism gentrification: Master class 2016. Tilburg: Fontys School of Fine and Performing Arts, Stadslab European Urban Design Laboratory.
DiNatale, S., Lewis, R., & Parker, R. (2018). Short-term rentals in small cities in Oregon: Impacts and regulations. Land Use Policy, 79, 407–423. https://doi.org/10.1016/j.landusepol.2018.08.023
Dolnicar, S. (2019). A review of research into paid online peer-to-peer accommodation: Launching the Annals of Tourism Research curated collection on peer-to-peer accommodation. Annals of Tourism Research, 75, 248–264. https://doi.org/10.1016/j.annals.2019.02.003
Espinosa, T.P. (2016). The Cost of Sharing and the Common Law: How to Address the Negative Externalities of Home-Sharing. Chapman Law Review, 19, 597.
Furukawa, N., & Onuki, M. (2019). The design and effects of short-term rental regulation.
Current Issues in Tourism, 25(20), 3245–3260. https://doi.org/10.1080/13683500.2019.1638892
Garay, Lluis & Lladós-Masllorens, Josep & Meseguer-Artola, Antoni & Morales, Soledad. (2022). Analyzing the influence of short-term rental platforms on housing affordability in global urban destination neighborhoods. Tourism and Hospitality Research. 22. https://doi.org/146735842110575. 10.1177/14673584211057568
Garcia, B., Miller, K., & Morehouse, J. (2021, June 11). In Search of Peace and Quiet: The Heterogeneous Impacts of Short-Term Rentals on Housing Prices. The Center for
Growth and Opportunity. https://www.thecgo.org/research/in-search-of-peace-and-quiet-the- heterogeneous-impacts-of-short-term-rentals-on-housing-prices/
Garcia-López, M.-À., Jofre-Monseny, J., Martínez-Mazza, R., & Segú, M. (2020). Do short-term rental platforms affect housing markets? evidence from airbnb in Barcelona. Journal of Urban Economics, 119, 103278. https://doi.org/10.1016/j.jue.2020.103278
Grimmer, L., Vorobjovas-Pinta, O., & Massey, M. (2019). Regulating, then deregulating airbnb: The unique case of Tasmania (Australia). Annals of Tourism Research, 75, 304– 307. https://doi.org/10.1016/j.annals.2019.01.012
Guttentag, D., Smith, S., Potwarka, L., & Havitz, M. (2017). Why tourists choose airbnb: A motivation-based segmentation study. Journal of Travel Research, 57(3), 342–359. https://doi.org/10.1177/0047287517696980
Hatch, M. E. (2016). Statutory protection for renters: Classification of State landlord–tenant policy approaches. Housing Policy Debate, 27(1), 98–119. https://doi.org/10.1080/10511482.2016.1155073
Heylighen, F. (2017). Towards an intelligent network for matching offer and demand: From the sharing economy to the global brain. Technological Forecasting and Social Change, 114, 74–85. https://doi.org/10.1016/j.techfore.2016.02.004
Huang, Y., Chen, Y., & Tan, C. H. (2021). Regulating new digital market and its effects on the incumbent market: Investigation of online peer-to-peer short-term rental. Information & Management, 58(8), 103544. https://doi.org/10.1016/j.im.2021.103544
Huber, A. (2017). Theorising the dynamics of collaborative consumption practices: A comparison of peer-to-peer accommodation and cohousing. Environmental Innovation and Societal Transitions, 23, 53–69. https://doi.org/10.1016/j.eist.2016.12.001
Ignatius, C. (2023, January 22). Proposed short-term rental accommodation guidelines detrimental to Penang's tourism economy, growth. BusinessToday. Retrieved from https://www.businesstoday.com.my/2023/01/22/proposed-short-term-rental-accommodation-guidelines-detrimental-to-penangs-tourism-economy-growth/
Jefferson-Jones, J. (2016, January 13). Can short-term rental arrangements increase home values?: A case for airbnb and other home sharing arrangements. SSRN. Retrieved January 26, 2023, from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2714051
Kaplan, R.A., & Nadler, M.L. (2015). Airbnb: A Case Study in Occupancy Regulation and Taxation.
Katz, V. (2015). Regulating the Sharing Economy. Berkeley Technology Law Journal, 30(4), 1067. https://lawcat.berkeley.edu/record/1126844
Khotcharee, Q. & Fukushima, S. (2022). Emergence of peer-to-peer accommodation sharing in bangkok. Urban and Regional Planning Review, 9, 200–221. https://doi.org/10.14398/urpr.9.200
Lazim, M.S. (2020), “Evolution of migration for urban and rural”, available at www.dosm.gov.my/v1/uploads/files/6_Newsletter/Newsletter2020/DOSM_BPPD_4- 2020_Series-62.pdf
Lestegás, I., Seixas, J., & Lois-González, R.-C. (2019). Commodifying Lisbon: A study on the spatial concentration of short-term rentals. Social Sciences, 8(2), 33. https://doi.org/10.3390/socsci8020033
Lim Kian Fung and Ezdihar Hamzah. (2020). Guest’s Decision Making between Peer-To-Peer Accommodation and Hotel. 2nd Kuala Lumpur International Conference on Education, Economics and Technology (KLICEET 2020) eISBN: 978-967-2476-07-8 Kuala Lumpur, Malaysia.
Manganelli, B., Tataranna, S., & De Paola, P. (2020). A comparison of short-term and long- term rental market in an Italian city. Computational Science and Its Applications – ICCSA 2020, 884–898. https://doi.org/10.1007/978-3-030-58808-3_63
McKee, K., Soaita, A. M., & Hoolachan, J. (2019). ‘generation rent’ and the emotions of private renting: Self-worth, status and insecurity amongst low-income renters. Housing Studies, 35(8), 1468–1487. https://doi.org/10.1080/02673037.2019.1676400
Mohamad, N.E. and Murugesu, P. (2020), “Linkages between capital structure, property overhang and financial sustainability: evidence from property sector in Malaysia”, Global Business and Management Research: An International Journal, Vol. 12 No. 4, pp. 441-454.
Nieuwland, S., & van Melik, R. (2018). Regulating airbnb: How cities deal with perceived negative externalities of short-term rentals. Current Issues in Tourism, 23(7), 811–825. https://doi.org/10.1080/13683500.2018.1504899
Revilla, M. A., Saris, W. E., & Krosnick, J. A. (2014). Choosing the Number of Categories in Agree–Disagree Scales. Sociological Methods & Research, 43(1), 73–97. https://doi.org/10.1177/0049124113509605.
Sheppard, S., & Udell, A. (2016). Do Airbnb Properties Affect House Prices.Stienmetz, J. L., Liu, A., & Tussyadiah, I. P. (2020). Impact of perceived peer to peer accommodation development on community residents’ well-being. Current Issues in Tourism, 25(21), 3481–3499. https://doi.org/10.1080/13683500.2020.1797644
Su, S., He, S., Sun, C., Zhang, H., Hu, L., & Kang, M. (2021). Do landscape amenities impact private housing rental prices? A hierarchical hedonic modeling approach based on semantic and sentimental analysis of online housing advertisements across five Chinese megacities. Urban Forestry & Urban Greening, 58, 126968. https://doi.org/10.1016/j.ufug.2020.126968
Tussyadiah, I. P., & Zach, F. (2016). Identifying salient attributes of peer-to-peer accommodation experience. Journal of Travel & Tourism Marketing, 34(5), 636–652. https://doi.org/10.1080/10548408.2016.1209153
Van Doorn, L., Arnold, A., & Rapoport, E. (2019). In the age of cities: The impact of urbanisation on house prices and affordability. Hot Property, 3–13. https://doi.org/10.1007/978-3-030-11674-3_1
Varma, A., Jukic, N., Pestek, A., Shultz, C. J., & Nestorov, S. (2016). Airbnb: Exciting innovation or passing fad?. Tourism Management Perspectives, 20, 228-237.
Yeon, J., Kim, S. H. “J., Song, K., & Kim, J. (2020). Examining the impact of short-term rental regulation on peer-to-peer accommodation performance: A difference-in-differences approach. Current Issues in Tourism, 25(19), 3212–3224. https://doi.org/10.1080/13683500.2020.1814704
Yi Ven Low. (2020, October 17). Malaysia’s Blanket Ban on Short-Term Rentals: What are the odds?
Wachsmuth, D., & Weisler, A. (2018). Airbnb and the Rent Gap: Gentrification through the sharing economy. Environment and Planning A: Economy and Space, 50(6), 1147– 1170. https://doi.org/10.1177/0308518x18778038
Wakita, T., Ueshima, N., & Noguchi, H. (2012). Psychological distance between categories in the Likert scale. Educational and Psychological Measurement, 72(4), 533–546. https://doi.org/10.1177/0013164411431162
Wong, W. L., Lee, C., & Koong, S. S. (2019). Housing prices in Peninsular Malaysia: Supported by income, foreign inflow or speculation? International Journal of Housing Markets and Analysis, 12(3), 424–441. https://doi.org/10.1108/ijhma-01-2018-0001
Wrede, M. (2022). How Short-Term Rentals are Changing the Neighborhood. International Regional Science Review, 45(4), 417–443. https://doi.org/10.1177/01600176211059981
Zervas, G., Proserpio, D., & Byers, J. W. (2017). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Journal of Marketing Research, 54(5), 687–705. https://doi.org/10.1509/jmr.15.0204
Zyed, Z. A. S., Yong, M. Y., & Tedong, P. A. (2020). Public users’ perception of Airbnb in Malaysia: Should we regulate? Property Management, 38(5), 627–642. https://
Published
2024-07-31
How to Cite
CHE MAHADI, Jasmin Nabila; HAMZAH, Ezdihar; KANNIYAPAN, Gunavathy.
Short-Term Rental in the Socioeconomic Aspect in Kuala Lumpur.
International Journal of Advanced Research in Economics and Finance, [S.l.], v. 6, n. 2, p. 281-291, july 2024.
ISSN 2682-812X.
Available at: <https://myjms.mohe.gov.my/index.php/ijaref/article/view/27230>. Date accessed: 13 sep. 2024.
Section
English Section
