GOVERNMENT POLICY ON HOURLY-RATED HOTELS

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GOVERNMENT POLICY ON HOURLY-RATED HOTELS: 14.

Mr Christopher de Souza asked the Minister for Trade and Industry (a) if his Ministry is aware that allowing hourly-rated or transit hotels in residential areas results in sex workers plying their trade in the neighbourhood and causes distress to residents; (b) what measures will his Ministry implement to prohibit the issuance of licences to charge hourly rates to hotels operating in residential areas; and (c) whether his Ministry will consider

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only permitting hourly-rated or transit hotels near the airport and not in residential areas.

The Senior Minister of State for Trade and Industry (Mr S Iswaran) (for the Minister for Trade and Industry): Mr Speaker, Sir, while I understand the Member’s concerns, it is important to point out that hotels that offer transit rates should not automatically be associated with vice. Hotels offer such transit rates to meet the accommodation needs of a diverse group of customers, including travellers, shipping crew, day trippers, and even locals for social gatherings. Hence, it is not practical for such hotels to be restricted only to locations near the airport, as the Member has suggested, as they do serve the needs of various groups other than air travellers.

Like many major cities around the world, Singapore allows our hotels the flexibility to set their operating model, as long as they meet the necessary requirements.

Notwithstanding this, the Hotel Licensing Board (HLB) will not hesitate to take firm action against hotels when there is evidence that they have been facilitating vice-related activities. Penalties against offending hotels can range from disallowing transit rates to revoking the operating licence of the hotel, in extremis .

To complement this set of downstream penalties against offending hotels, the HLB has, since September last year, also implemented a set of upfront measures to tighten the regulation of hotels offering transit rates. All hotels intending to offer such rates are now required to indicate the reasons for doing so in their licence renewal applications. To ensure the safety of guests and to curb possible illegal activities, all hotels will have to propose

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security and preventive measures, for example, the installation of CCTVs in common areas and the deployment of security guards. For new hotels which are setting up in residential areas, the hotel will also be required to engage the community. The HLB, in consultation with the other agencies, reviews each licence application on its merits and conducts physical checks to ensure that hotels implement the security measures stated.

I would like to assure all Members of the House that the HLB is monitoring the situation closely, and will continue to work with all Government agencies and the industry to mitigate any social disamenities that might arise from hotel operations.

Mr Christopher de Souza: I thank the Senior Minister of State for the comprehensive reply and I appreciate that hourly-rated hotels service more than just air travellers, and I agree with that position.

I would like clarifications on two points. The Minister mentioned in September last year new guidelines came out imposing certain restrictions on those intending to set up budget hotels. So do those restrictions apply to budget hotels pre-dating September last year? And that leads to the second clarification which is, if there are budget hotels in residential areas which were set up before September last year, can the community also be engaged as to whether or not their licence should continue if indeed there is a high amount of vice being generated by that within the neighbourhood?

Mr Iswaran: Mr Speaker, Sir, the answer to both questions really is hotels are issued licences and these licences are subject to renewal, typically, I think, on an annual or biennial basis. And at the point of renewal, these considerations will apply, and HLB will take them into account.

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As for whether we would impose the community engagement requirement, that would really depend on the situation because if, in fact, the hotel has been conducting its business in a manner that does not in any way incur or cause any disamenities to the community, then we do not need to impose these additional encumbrances on the hotels. But where there is an indication that there may be some issues, then certainly that would be required.

Mr Speaker: Mdm Phua, a short question, please. We do not have much time.

Mdm Cynthia Phua (Aljunied): Thank you, Sir. I would like to ask Senior Minister of State Iswaran to buy Senior Minister of State Grace Fu a good cup of coffee. I agree with him that if there is no budget hotel in a residential area, there is really no issue of hourly rates. Although the Senior Minister of State Grace Fu has said that budget hotels can co-exist in residential areas, it is not so in the real situation. Hotels should only be built in hotel-designated use areas in the Masterplan. So I would like the Senior Minister of State Iswaran, please buy her a cup of coffee and resolve this issue on the ground.

Mr Iswaran: I thank the Member and I will extend the due hospitality.

Mr Speaker: Ms Irene Ng.

Ms Irene Ng Phek Hoong: Thank you. Sir, there is not so much time and I see that our colleague, Mr Christopher de Souza, has one more question.

Mr Speaker: Okay, you are giving the time to him. Yes, Mr de Souza.

Mr Christopher de Souza: I am much obliged and I think I should buy Ms Irene Ng a cup of coffee.

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Mr Speaker: No, please. Get on with your question, Mr de Souza, please.

Mr Christopher de Souza: The Senior Minister of State mentioned the Community Engagement Programme (CEP) being imposed on hotels if MTI receives feedback about vice activities on the ground within the community. So is there a mechanism for the community to give feedback to MTI that indeed it thinks that the hotels should have the CEP imposed and what is the mechanism through which that filters up?

Mr Speaker: Two-and-a-half minutes.

Mr Iswaran: The short answer is, I think there is quite a range of mechanisms. The community can inform the Hotel Licensing Board. The Member of Parliament can make representation to the Ministry or to the Board as well. And I think, in general, the HLB is also monitoring the situation on the ground and therefore tries to keep in regular contact with all the stakeholders and so the stakeholders should maintain that dialogue on a regular basis.