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The Home Affairs Department (HAD) today (March 13) announced the outcome of the public consultation exercise on the Review of the Hotel and Guesthouse Accommodation Ordinance (the Ordinance) and the proposed way forward in light of the views received.
Speaking at a press conference, the Permanent Secretary for Home Affairs, Mrs Betty Fung, said that the HAD launched the public consultation exercise last July and proposed a number of measures to improve the licensing regime so as to minimise the nuisance and inconvenience caused to local residents by guesthouses in multi-storey buildings, and to enhance the effectiveness of enforcement action of the Office of the Licensing Authority (OLA) against unlicensed guesthouses.
Mrs Fung said, "The community responded positively to the consultation. The HAD has received some 1,100 written submissions. In general, the proposals on enhancing the regulation of guesthouses and combating unlicensed guesthouses contained in the consultation document were widely supported by members of the public. Some respondents also called for early implementation of the proposals.
"Having carefully considered the views submitted by the public, we will implement various proposals set out in the consultation document and introduce the Hotel and Guesthouse Accommodation (Amendment) Bill (the Bill) into the Legislative Council for scrutiny as soon as practicable.
"Meanwhile, we noted the worries and concerns of the guesthouse industry that the proposals may stifle their business and increase their operating cost. To minimise the impact on the industry, the HAD will introduce suitable transitional arrangements with a view to striking a balance between enhancing regulation of guesthouses and allowing them room to maintain their business," she added.
Introducing the detailed proposals, the acting Director of Home Affairs, Mr Jack Chan, said that legislative amendments to the Ordinance are required to enable the implementation of some of the proposals. The proposals include:
(a) empowering the Licensing Authority (Authority) to refuse to issue or renew a licence if the Deed of Mutual Covenant (DMC) of the building concerned contains any express provision which prohibits the premises concerned to be used as a hotel or guesthouse, for commercial purpose or for any purpose other than for private residential purpose;
(b) empowering the Authority, in processing a licence application, to take into account the recommendations made by the independent panel, comprising non-official members to be set up upon enactment of the Bill, after considering the views submitted by residents living in the same building and the applicant's responses;
(c) requiring that the applicant (including a body corporate) must be a "fit and proper" person;
(d) introducing a new provision to facilitate instigating prosecution by circumstantial evidence. If there is sufficient evidence, circumstantial or otherwise, showing that any premises are used as unlicensed guesthouse, the owner, tenant (excluding ordinary tourists) or occupier will be liable;
(e) empowering the Authority to apply to the court for a search warrant to allow enforcement officers to enter into, or break into when necessary, a suspected unlicensed guesthouse;
(f) increasing the maximum fines for operating unlicensed guesthouses from $200,000 to $500,000 and imprisonment from two years to three years; and
(g) empowering the Authority to apply to the Court to issue a Closure Order against the relevant premises, upon the second conviction of operating an unlicensed guesthouse, for six months.
Mr Chan said, "We are aware that the above proposals may adversely affect existing guesthouse operators, in particular those who are operating guesthouses in buildings whose DMC contains explicit restrictive provisions. To allow more time for existing operators to adapt to the new licensing regime and make necessary arrangements, they may renew their existing licenses once, for a period of 12 months, after the commencement of the Bill on the basis of the existing licensing requirements.
"The OLA will issue a special alert to the affected operators of the new licensing requirements and recommend them to seek legal advice as early as possible. Priority will also be given to processing their relocation applications."
Separately, the HAD will include new conditions in the guesthouse licences (for both new and renewed licences) as administrative enhancement measures to enhance the safety of guesthouses and protection of their guests. Licence holders will be requested to provide a 24-hour manned counter in their guesthouses, and to procure third party risks insurance with the minimum insured amount of $10 million per event.
To assist tourists in choosing suitable accommodation and avoid confusion caused by the nomenclature, the OLA will issue different types of licences to hotels and guesthouses, with "Hotel Licence" reserved for purpose-built hotels only. The OLA will specify in the licence condition that other than hotel licensees, holders of other licences shall not use the word "hotel" in their business names.
"We aim to implement the three administrative enhancement measures mentioned above, applying to both new and renewed licences, in the third quarter of 2015. The existing licences will be given a grace period of 12 months upon their next licence renewal to allow them sufficient time to comply with the new licensing conditions and requirements," Mr Chan added.
Ends/Friday, March 13, 2015
Issued at HKT 19:49
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