Thai hotel industry fears revenue and tax loss over reclassifying small properties

[snoop1130]

 

The Thai Hotels Association (THA) voiced concerns over recent ministerial regulations that exclude accommodations with fewer than eight rooms and 30 guests from being classified as hotels. The THA predicts this new rule will result in a 15-20% decrease in hotel tourism revenue, heightened safety risks, and loss of tax revenue.

 

This regulation, announced in the Royal Gazette, has been criticised by Udom Srimahachota, Vice-President of THA’s western chapter, for being more detrimental than advantageous for the overall industry. The revision updated the non-hotel definition from establishments with four rooms, accommodating no more than 20 guests, to those with up to eight rooms housing a maximum of 30 guests.

 

The Tourism Council of Thailand supports the regulation, believing it would stimulate local homestays offering unique services. However, this perspective conflicts with THA’s stance, as the association believes it would allow more properties to circumvent the regulations and taxes that registered hotels must adhere to.

 

Udom stated that the government stands to lose revenue due to these non-hotel properties potentially evading taxes, including VAT, personal income tax and corporate income tax, reported Bangkok Post.

 

“The problem is also with the land and building tax where hotels must pay 10 times more than non-hotels as those could pay this tax at the second household rate, unlike registered hotels.”

 

By Neill Fronde

Caption: Photo by Norbert Braun on Unsplash

 

Full Story: https://thethaiger.com/news/business/thai-hotel-industry-fears-revenue-loss-over-ministerial-regulations

 

-- The Thaiger 2023-09-05

 

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[ukrules]

It ,may be a little detrimental to the hotel industry but it's going to be a big boost for the small guesthouse industry.

 

I guess you can't always have your own way so that's just hard luck for the billion dollar hotel chains

[RichardColeman]

I'm quite sure this would not be an issue for the THA if the tourism figures they gave were real and the larger hotels full up !

[Drumbuie]

Sounds like Airbnb and Booking.com have been lobbying the government....

[retarius]

Kick AirBnB out and hotel revenues will rise.