Friday, October 06, 2006

More bad regulation

Are there any hoteliers out there who would like to explain how this regulation protects consumers?

Service apartment operators hope to offer shorter stays
They want Govt to remove seven-day rule to allow them to compete better
By Fiona Chan
Sep 29, 2006
The Straits Times

SINGAPORE'S service residence operators are banding together to ask the Government to allow them to rent out their apartments for stays as short as one night.

They want a rule imposing a minimum of seven nights to be ditched. It is a relic of British colonial days, they say.

The change would enable them to compete directly with hotels and keep their apartments more fully occupied…

Mr Tan [the president of Serviced Apartments Association of Singapore (SAA)] said the main reason the service apartment operators are seeking the change is not to compete directly with hoteliers, but to help meet national demand for accommodation and to fill their units on a more regular basis.

'With the impending shortage of hotel rooms, we can at least try to fill a gap and provide ample accommodation.'

An anticipated tourism boom over the next few years is sparking concern that hotel rooms will be in short supply before more hotels are built…

'We're not doing this because we want to take away business from hotels, but we do have gaps. We do have apartments that are available for a few days in between longer-term stays but we can't let them out,' Mr Tan added.

2 Comments:

Blogger zyn said...

hi it's me again :) i don't understand why consumer protection is the focus of your question. the regulation wasn't passed to protect consumers but to encourage the serviced apartment industry by allowing such properties to be set up outside of relatively rare hotel-zoned areas. it's a stupid regulation.

2:29 PM  
Blogger a singapore economist said...

zyn,

I was being a bit obnoxious. Usually the benefactors disingenuously defend such self-serving regulation on the grounds of protecting the public. In this case, there is no obvious way that hoteliers can use this tactic.

If you are interested, check out some past posts and comments on this tactic:

Milton Friedman

lawyers

optemetrists

1:07 AM  

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