Public back ending guest house legal loophole
Majority of public want end to loophole allowing accommodation to be licensed in residential buildings even if it is prohibited by the deeds
Plans to stop issuing licences for guest houses to operate in residential buildings whose deeds prohibit them remain on track after a public consultation gained residents' support - but trade opposition.
Despite a suggested one-year grace period for existing guest house operators after the new law comes into effect, the proposal has met strong opposition from the hospitality industry.
The trade body said businesses should be compensated for being forced to shut. It also called for a three-year grace period.
Last July, the Home Affairs Department launched a one-month public consultation about amending the Hotel and Guesthouse Accommodation Ordinance to tighten the licensing of guest houses. Officials proposed closing a legal loophole where guesthouses can be licensed by the government despite being situated in buildings that allow neither temporary accommodation nor commercial activities.
Under the existing law, the department has no power to reject license applications on this basis. As a result, about 280 licensed guest houses operate in residential buildings whose deeds of mutual covenant prohibit them.
The 2013 blaze at Continental Mansion in North Point, which injured 25 people after fire ripped through a guest house, sparked an outcry from residents concerned that such accommodation was compromising safety.
Yesterday the department said it had received a total of 1,089 written submissions during the consultation, including 363 from hotels and guest houses. The majority of respondents not part of the industry backed changing the licensing rules. The department also proposed setting up an independent panel to gauge the views of residents when there is a guesthouse application for their building.