Reports: deed restrictions could be waived for outlying-island guesthouses in buildings of three storeys or fewer

Two reports citing unnamed sources say guesthouse licence applications for buildings of three storeys or fewer on Hong Kong’s outlying islands could be assessed without considering deed restrictions on guesthouse use. The proposed change would remove one obstacle for operators on Cheung Chau and elsewhere, while leaving other licensing requirements in place.

At present, holiday-home and guesthouse operators apply through the Home Affairs Department’s Licensing Authority. Where a building’s deed expressly restricts guesthouse use, a licence will not be issued, according to i-CABLE News. The reported relaxation has not been presented as an operating rule and is expected to feature in the Policy Address.

A Cheung Chau holiday-home operator who rents out 36 units welcomed the prospect, saying some operators had been unable to renew their licences because of deed restrictions. She also called for further flexibility in the licensing rules, while stressing that owners would still have to meet fire-safety and structural requirements.

Those requirements can be expensive for small properties. The operator said owners may need to hire an engineer to prepare reports or calculations, and that a licence covering only two rooms can create a significant cost when a holiday home has four units on one floor. Star Headline reported a separate industry request for dedicated government subsidies for fire-safety and other safety upgrades.

Local businesses see affordable, distinctive, safe and hygienic accommodation as a way to attract more family visitors. A Cheung Chau merchant said stronger accommodation options could raise the island’s appeal and bring more business, while a vice-chair of a tourism-industry committee argued that guesthouses could include local experiences such as traditional festivities and making rice buns to encourage visitors to stay an extra night.

The Policy Address is scheduled for 16 September, when the Chief Executive is also due to announce Hong Kong’s first five-year plan. The reported guesthouse licensing change is expected to be set out then.