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Pattaya: 70% of hotels are illegal but new laws will be good for business and tourist safety


Jonathan Fairfield

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Pattaya: 70% of hotels are illegal but new laws will be good for business and tourist safety

 

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A leading representative of the hotel and business community in Pattaya has stated that government moves to rein in illegal hotels and improve things like safety will be good for the legal hotel trade and consumer. 

 

Sinchai Wattanasatsathorn, ex-business and tourism leader and now head of Flipper Group Pattaya, told Manager that 70% of Pattaya hotels are illegal in one way or another. 

 

The government is using Article 44 powers to solve problems related to illegal encroachment, illegal adapting of buildings, change of use and safety concerns. 

 

Sinchai believes that the negatives of the plans are outweighed by the positives especially in terms of safety for the consumer. As reported earlier in the week the plans include improvements to fire related safety with extinguishers now needed on every floor of certain properties. 

 

Several new kinds of hotel will now be able to be legally registered increasing possibilities for the consumer to stay in properly registered accommodation that complies with all standards.

 

In 2016, Deputy Prime Minister Tanasak Patimapragorn revealed that around 60 percent of hotels throughout Thailand were operating illegally.

 

DPM Tanasak said that about 400,000 hotel rooms were in violation of of the 2004 Hotel Act.

 

Of 2,700 hotels operating in Phuket, only 900 were found to have a proper license. 

 

Last week, Prime Minister Prayuth promised to get tough on illegal hotels. 

 

The PM said that there are approximately 20,000 illegal hotels in Thailand. 

 

He has told business owners they have 90 days to signal their intentions to register their properties so they comply with the 2004 Hotel Act. They will then have until August 2021 to ensure they have the correct licenses. 

 

Illegal hotels are defined as properties such as hotels, condos, villas, guesthouses and hostels that offer accomodation but which are not registered with the authorities to do so. 

 

Source: Manager

 

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I thought that the NCPO was no longer around since the election which would maybe mean that article 44 could no longer be used but I am possibly wrong and I am sure I will get told otherwise .

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If 70 per cent of the hotels are closed, will there be enough hotel rooms left? Once the legal hotel rooms are filled up, where are people going to stay?

 

It might be good for the hotel industry, but all of the people not arriving because they have nowhere to stay won't be good for other businesses.

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1 hour ago, Jonathan Fairfield said:

The PM said that there are approximately 20,000 illegal hotels in Thailand. 

Only 20,000! No wonder they slipped under the radar!

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1 hour ago, Jonathan Fairfield said:

Pattaya: 70% of hotels are illegal but new laws will be good for business and tourist safety

 

hmmm :glare:

 

1 hour ago, Jonathan Fairfield said:

A leading representative of the hotel and business community in Pattaya has stated that government moves to rein in illegal hotels and improve things like safety will be good for the legal hotel trade and consumer.

 

aahhh! now i get it :biggrin:

 

 

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i for one am counting down the days until this article 44 smash down of the illegal hotel industry..

 

..who reckons there will be ONE high profile crackdown raid/news story then back to business as usual?

 

 

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Of course it would be good when 70-90% of rooms will

be gone allowing remaining 10% to charge whatever they want.

 

only little thing these leading hotels and business people have not considered was that those who can afford 5 star hotel always stay in 5 star hotels and those that can not afford it , still will not be able to afford it and simply will not come. 

 

How good is it going to be for business then?

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1 hour ago, keith101 said:

I thought that the NCPO was no longer around since the election which would maybe mean that article 44 could no longer be used but I am possibly wrong and I am sure I will get told otherwise .

NCPO gets disbanded once the new government is formed.

 

which will be any day now, no seriously, any day this week, sometime, whenever..

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1 minute ago, BestB said:

Of course it would be good when 70-90% of rooms will

be gone allowing remaining 10% to charge whatever they want.

 

only little thing these leading hotels and business people have not considered was that those who can afford 5 star hotel always stay in 5 star hotels and those that can not afford it , still will not be able to afford it and simply will not come. 

 

How good is it going to be for business then?

 

details details i'm sure this has all been factored in :cheesy:

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4 minutes ago, GeorgeCross said:

 

details details i'm sure this has all been factored in :cheesy:

Yeah like the Khaosan road. First they killed it and then spent USD 25 million to brainstorm on how to revive it . 

 

Surely one can understand requirements for 300 room hotel can not be the same as for 30 room hotel. 

 

How idiotic do you have to be not to understand small hotels can not comply with big hotels requirements , nor should they have to.

 

make safety priority, send inspectors to inspect and let people decide if they want to stay in 2 star hotel or a 5 star hotel 

 

 

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14 hours ago, redsongthaew said:

If 70 per cent of the hotels are closed, will there be enough hotel rooms left? Once the legal hotel rooms are filled up, where are people going to stay?

 

It might be good for the hotel industry, but all of the people not arriving because they have nowhere to stay won't be good for other businesses.

Given the Hotel GLUT

 

I assume that is the whole purpose about now getting strict about rules and regulations that likely did not exist when the old hotels were built.

Money Talks & Guest Houses walk

 

 

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The way business is going lots of them will be closing down I was looking on BDC in Patong Hotels for less than 250 Baht a night

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15 hours ago, keith101 said:

I thought that the NCPO was no longer around since the election which would maybe mean that article 44 could no longer be used but I am possibly wrong and I am sure I will get told otherwise .

Parliament will be formed mid July....so they say....NCPO and S44 remain till then....although IMO, S44 will remain.

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Illegal "one way or another" has lots of slack in it, ya think? Maybe something serious, such as ungrounded electricals, or something trivial, like not having brakes on maid's cleaning cart. We don't know, he doesn't tell us, so allows are brains to go realm of imagination.

What was that Orwell quote about authorities make so many laws impossible to know what you law you are breaking, but if they want to get you, there is a law handy to enforce

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1 hour ago, bristolgeoff said:

That many hotels illegal in pattaya,how many do they need.how many brown envelopes were used to build them if they were illegal 

yeah, reminds you of Britol and all the drugs and violence and disrespect for law, doesn't it

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16 hours ago, Jonathan Fairfield said:

Pattaya: 70% of hotels are illegal

70% of taxis are illegal, 70% of officials are illegal, 70% of prosti##s are illegal, 70% of bars are illegal,......and so on. The life in LOS.

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So, when your making an online booking or for that fact a walk in and want to make sure your covered by there insurance or by your own insurance, how do you know if a hotel has a licences and is legal?

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Let's see where this all goes to...
Declining tourist numbers. Higher prices for accommodation. Exodus of mid-class entrepreneurs/expats that can't make a living anymore.
Bigger and more brown bags....
Seems everyone WINS here. (Not) 

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16 hours ago, keith101 said:

I thought that the NCPO was no longer around since the election which would maybe mean that article 44 could no longer be used but I am possibly wrong and I am sure I will get told otherwise .

It is still in effect because a new government has yet to be formed. 

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According to TAT tourist numbers increase by 10% year on year.

 

So what could possibly go wrong when tourist numbers go up by 10% but available lodging goes down by 70% ?😳

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Is it very suspicious, 70% of hotels in Pattaya are illegal? How can it be? There are no controls?
And what's the percentage for all of Thailand?

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