HOTELS IN RESIDENTIAL ESTATES

HOTELS IN RESIDENTIAL ESTATES:

(Rationale): 9.

Mdm Cynthia Phua asked the Minister for Trade and Industry (a) what is the Ministry's rationale in allowing hotels to operate in residential estates; (b) what are the reasons for allowing hourly rates at these hotels in residential estates; and (c) whether his Ministry will consider removing the hourly rates at the two budget hotels in front of the six terrace houses along Sireh Place.

The Senior Minister of State for Trade and Industry (Mr S Iswaran) (for the Minister for Trade and Industry): Land designated as "Commercial and Residential" are used or intended to be used mainly for mixed residential and commercial purposes. Subject to planning evaluation by URA, hotels may be allowed on sites designated as “Commercial and Residential”.

The two hotels near Upper Serangoon Road and Sireh Place were approved by URA as the sites are located within a mixed use area with shops, eateries, places of worship, among other uses. In addition, the street block fronts the busy Upper Serangoon Road and is near to the Yio Chu Kang junction.

When it comes to the setting of rates, like many major cities around the world, such as Hong Kong, London, New York and Sydney, Singapore adopts a pro-enterprise approach, allowing hotels the flexibility to determine their own operating model as long as they meet the necessary requirements. The Hotel Licensing Board (HLB) recognises that some hotels charge transit rates to cater to the accommodation needs of guests, such as travellers with late connecting flights, business travellers, day trippers who wish to rest and refresh before heading home, etc.

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While licensing applications are common to all, hotels intending to offer transit rates are required to indicate in their applications their reasons for doing so. To ensure the safety of guests and to curb possible illegal activities, such hotels are also required to put in place appropriate security and preventive measures, for example, installing CCTVs in common areas or deploying 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 other agencies, reviews each licence application on its merits.

The two transit rate hotels at Sireh Place have gone through HLB’s licensing process and have put in place security measures, such as CCTVs and patrols. HLB works closely with enforcement agencies to monitor vice activities in the hospitality establishments and will continue to do so. Where there is evidence of hotels facilitating vice-related activities, the HLB will not hesitate to revoke the operating licence of offending hotels.

Mdm Cynthia Phua: Mr Speaker, Sir, I have met up with the two owner-operators of the hotels. They gave the reasons that they wanted the two budget hotels to serve two purposes. One, is for regional offices to board their staff who are in Singapore for training, so that they have a place for the staff to stay. The second reason is to allow the local residents who have visiting relatives a place to stay. With these two main objectives, I wonder why the Ministry of Trade and Industry would allow the hourly rate for these hotels. Because with these two purposes, you do not need the hourly rate. Based on their two objectives, could the Minister consider removing the hourly-rate licence for these two hotels?

Mr Iswaran: Mr Speaker, Sir, I fully appreciate the Member's concern on

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behalf of her constituents and residents. As a general rule, hotels offer transit rates for a variety of reasons. In the case of these particular examples she has cited, it may well be that they are targeting at the regional offices and the local residents who have relatives visiting, although I suspect that it may not be exclusively just for these groups. But having said that, I think the Member's point is valid and I want to make the point that, first, we should not over-react based on one or two episodes. I think that would be unfair to the businesses and, in general, set the wrong tone. But having said that, neither do we want to wait until the situation deterioriates to a point where we are forced to act. That is not the intention either. I want to assure the Member of that. That is why we have put in place these measures, such as the requirements for CCTVs, security patrols and also community engagement. And I think the Member is well aware of that because she has actively engaged the operators in question in this case. In the event that they exceed the perimeters that are acceptable, then certainly, warning letters will be served, and if they persist in this sort of egregious activity, then their licence is at risk.

Mr Speaker: Last question. I do not know how much further you can go with this.

Mdm Cynthia Phua: Sir, I would just like to ask the Senior Minister of State – this is not the first time the estate has asked the Minister to consider removing the transit rate. I think Member of Parliament, Mr Chan Soo Sen, has done that for Joo Chiat. I would like to ask the Minister to consider removing the transit rate for these two budget hotels. Basically, it is the location of the two budget hotels. It is directly behind six residential houses where the main gates are facing the hotels. Could the Minister, please, seriously consider this, in view of the fact that he has lifted the hourly rate for Joo Chiat hotels.

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Mr S Iswaran: Mr Speaker, Sir, I thank the Member for her persistence. I want to assure the Member that there is no intention nor is there a risk of this becoming another Joo Chiat. We have the measures in place. I think we should allow legitimate business activity to continue, if in any way it results in a material deterioration of the environment in the manner that the Member has described, then I think the enforcement agencies and the Hotel Licensing Board will act and, in the meantime, we will work in close cooperation with the Member to prevent such a situation from coming about.