After tighter regulations on car-hailing apps, regulators are making the booming Airbnb-style homestay business their latest  internet-related target.

Zhejiang Province in east China became the first provincial government to rein in the burgeoning industry, which will be worth an estimated 100 million yuan (14.4 million US dollars) in 2017, according to a report by a consulting firm, iResearch.

The coastal province, home to China's Internet giant, Alibaba, and known for its entrepreneurial environment, will restrict the size of houses that are used in the Airbnb-style business and raise security standards.

A four-story, 15-room and 800-square meter house is the maximum size that can be used for a home stay, according to the new measure that will take effect next month.

Popular home-sharing network Airbnb has been taking customers from hotels globally by connecting landlords of affordable short-stay housing to vacationers who can then mingle with locals, a perk they seldom get in hotels.

The Chinese version, Tujia, is also riding on the same momentum, mainly catering to customers in China. This past summer, it bought the short-term home rental site Mayi.com. In October, Tujia consolidated its status by reaching an agreement with Ctrip and Qunar to merge the vacation home rental businesses of the two Chinese online travel services.

The way this ineligible market attracted the attention of regulators was reminiscent of car-hailing apps. In October, mega cities, including Beijing and Shanghai, downsized eligible drivers working for car-hailing apps to locals whose cars have locally registered plates.

The fast-growing, tech-savvy clientele eschewed traditional businesses, which could eventually lead to a revolution by making the old industry smarter and internet-connected.

(Story adapted from China Daily)