Hong Kong cracks down on unlicensed guesthouses during Chinese New Year

Undercover and inspections took operators by surprise.

The Home Affairs Department’s Office of the Licensing Authority has stepped up enforcement action against unlicensed guesthouses during the Lunar New Year.

Since January 27, the office has made surprise inspections, sent undercover officers in as tourists, and worked with other departments to crackdown on such guesthouses throughout the city.

Among 90 premises inspected, six were suspected to have unlicensed guesthouse activities. Prosecution will ensue if there is sufficient evidence to warrant it.

Over the past five years, the number of suspected unlicensed premises' inspections has risen from 2,430 in 2009 to 9,889 in 2013. The prosecution numbers have also risen, from 39 to 171, along with the conviction numbers, from 36 to 161.

During the period, 390 people were convicted, 26 were sentenced to imprisonment and the maximum penalty was a three-month immediate imprisonment.

The office has also implemented stringent measure targeting licensed guesthouses operators who operate guesthouses at other premises, commonly known as 'shadow guesthouses'.

If a guesthouse licence holder is convicted of unlicensed guesthouse operation, the office may consider cancelling all licences a concerned licencee holds, or refuse to renew them. So far, the office has cancelled or refused to renew the licences of 13 guesthouses under the arrangement.

The office also appeals to tourists to check the list of licensed hotels and guesthouses on its website before making a reservation.