Budget hotel as the name suggest provides travellers who are on a tight budget with a basic accommodation without much frills or services at a “budget price”. Penang is no stranger to this concept of accommodation. It started to mushroom in the 60’s and 70’s even when the promotion of the tourism industry in Malaysia was at its infancy stage. Penang has already seen an influx of backpackers mainly from Europe and America visiting this exotic state, especially the island. In those days, the enclaves around Chulia Street and Batu Ferringhi have been home to many budget hotels and remains so up to this very day.