Hong Kong: Legislation has progressed over time, why not now?

The Past:
“Guesthouse” as a new category for better regulations

1970s
Short-term accommodation was governed by Hotel Accommodation Ordinance. Only hotels were regulated while guesthouses were not considered a legal lodging option.

1980s
China’s open door policy resulted in an influx of visitors from Taiwan, stopping by Hong Kong to China and leading to a surge in demand for budget accommodation.

1991
The Hong Kong government ordered that a licensing system for guesthouse should be adopted to regulate fire safety, structural safety, health and hygiene matters. The amended Ordinance was renamed to Hotel and Guesthouse Accommodation Ordinance (HAGAO).
The Present:
Home sharing on the rise

2008
Enabled by technology, tourists around the world prefer alternative ways to experience authentic and diverse culture. Home sharing has become a popular way to do so.

2014
Responding to the demand for stronger regulation of hotels and guesthouses, the government carried out public consultation to review HAGAO. During that time, home sharing was only emerging in Hong Kong.

2017
An Audit Report in 2017 suggested the Administration should consider “drawing up unique guidelines for homestay lodgings.”

2018
The government submitted the HAGAO amendment bill to the Legislative Council without consideration of a new regulatory framework for home sharing. The amendment bill further restricts the growth of home sharing in Hong Kong and is based on an outdated public consultation conducted in 2014.
Our Policy Suggestions
We understand there are legitimate concerns about homestay lodgings. We propose the creation of a new accommodation category for short-term homestays. Embracing home sharing in this way will allow Hong Kong to tap into a more diversified visitor market, and a broad segment of Hong Kong residents and small businesses will benefit from tourist spending.
Click here to read more about our proposed regulation framework.
