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Like many major cities around the world, Singapore allows 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 license of the hotel.
To complement this set of downstream penalties against offending hotels, the HLB has, since September 2009, also implemented a set of upfront measures to tighten the regulation of hotels offering transit rates. All hotels intending to offer transit rates are now required to indicate the reasons for doing so in their license renewal applications. To ensure the safety of guests and to curb possible illegal activities, all hotels will have to propose 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 other agencies, reviews each license application on its merits and conducts physical checks to ensure that hotels implement the security measures stated.
I would like to assure Members that the HLB is monitoring the situation closely, and will continue to work closely with all government agencies and the industry to mitigate any social disamenities that might arise from hotel operations.