Thai Hotels Object to 75% Foreign Condo Ownership Proposal

[webfact]

 

The Thai Hotels Association (THA) has openly criticised the government's plan to permit foreign ownership of up to 75% in condominium units. The association fears the proposal could spark fierce price competition and disrupt the hospitality market. The concerns were voiced during a recent meeting focusing on key industry issues.

 

At the meeting, Tourism and Sports Minister, Sermsak Pongpanich, outlined Thailand's tourism direction and government policies aimed at supporting the sector. He invited association members to openly discuss their challenges and provide feedback.

 

One of the central issues raised was the government’s consideration to increase foreign ownership limits in condominiums from 49% to 75%. According to the THA, this change poses a significant threat to their industry.

 

Tianprasert Chaipattananon, President of the THA, stated that the Ministry of Finance is preparing to propose this policy to the Cabinet. Chaipattananon voiced strong objections, arguing that increased foreign ownership would allow condos to be rented out on a daily basis, thereby directly competing with hotels and causing potential price wars.

 

 

The association highlighted the disparity in management costs between legally registered and unregistered hotels, noting that the former incurs significantly higher costs. There are currently over 40,000 hotels listed on online travel agency (OTA) platforms, yet only about 15,000 to 16,000 are legally registered. The rest, around 25,000, operate without proper registration.

 

If the Cabinet approves the policy, the market could see a surge in condos available for daily rental, heightening competition. There is also concern that the remaining 25% ownership could be exploited by foreign nominees, effectively bypassing the ownership cap.

 

The meeting ended with a strong call for the government to reconsider the proposed policy based on its potential negative impacts on the hotel industry and broader economic repercussions. The association emphasised the need for a balanced approach that supports foreign investment while ensuring the viability of local businesses.

 

File photo courtesy: Wikipedia

 

-- 2024-06-25

 

Get our Daily Newsletter - Click HERE to subscribe

[spidermike007]

We don't want to make life easier for foreigners. We don't like change, we hate progress and fairness. Keep things as they are. We are dinosaurs. 

[hotchilli]

3 hours ago, webfact said:

Tianprasert Chaipattananon, President of the THA, stated that the Ministry of Finance is preparing to propose this policy to the Cabinet. Chaipattananon voiced strong objections, arguing that increased foreign ownership would allow condos to be rented out on a daily basis, thereby directly competing with hotels and causing potential price wars

I thought a condition of the purchase of a condo was for residence only?

[jcmj]

Maybe they need to just crack down on all of the unlicensed hotels instead? 🤔 

[Henryford]

29 minutes ago, hotchilli said:

I thought a condition of the purchase of a condo was for residence only?

 

Condos can be rented over 30 days but it's a constant battle for most condos to stop people renting daily/weekly. Many farangs (cough Russians) think they can run an illegal  business renting their condos daily like a mini hotel.

[dinsdale]

1 hour ago, spidermike007 said:

We don't want to make life easier for foreigners. We don't like change, we hate progress and fairness. Keep things as they are. We are dinosaurs. 

In the case of Chinese and Russians who IMO will be the majority buyers I'm not sure it should be made easier.

[ikke1959]

Maybe start with the proper registration of the 25.000 which don't have it now.... and a single condo can be owned already by foreigners, but the whole building?? who on earth would buy a whole block of condos?? It needs many many millions 

[daveAustin]

 Couldn’t care less about more competition for hotels (that’s good for everyone else), more so that greedy Chinese property types will buy up more of the market. 

[ChaiyaTH]

Let's address the elephant in the room: many people prefer apartments as the service in most hotels and hostels is overrated anyway.

Edited Tuesday at 01:23 AM by ChaiyaTH

[Mike Lister]

Please help prevent competition, please help drive the foreigners towards the more expensive option, don't give them choices whatever you do! Says it all really.

[digbeth]

chinese taking over half the condos can vote through thing like not enforcing daily rentals and airbnb out the room or even to tour groups is a real possibility

 

but they seem to mull the option that foreign ownership over the 49percent original quota might not have voting rights, or make it 99 years lease... like most proposals are in Thailand...  clear as mud

[ChaiyaTH]

3 minutes ago, digbeth said:

chinese taking over half the condos can vote through thing like not enforcing daily rentals and airbnb out the room or even to tour groups is a real possibility

 

but they seem to mull the option that foreign ownership over the 49percent original quota might not have voting rights, or make it 99 years lease... like most proposals are in Thailand...  clear as mud

Yeah then the Chinese mafia just buys 75% and then buys 25% in Thai people their names, who they control, now they run a building.

[ChaiyaTH]

56 minutes ago, ikke1959 said:

Maybe start with the proper registration of the 25.000 which don't have it now.... and a single condo can be owned already by foreigners, but the whole building?? who on earth would buy a whole block of condos?? It needs many many millions 

Many people do, because you don't have the money doesn't mean other don't have it too. It is very common for a Chinese buyer to buy the entire floor, not one unit, as that costs them the same as just 1-2 units are in Shanghai etc. It's smart too, owning an entire floor.

Edited Tuesday at 01:36 AM by ChaiyaTH

[SABloke]

5 hours ago, webfact said:

arguing that increased foreign ownership would allow condos to be rented out on a daily basis,

 

Yes, because Thais do not have properties listed on AirBnB. Also, there is no prostitution in Pattaya 🙄

[RichardColeman]

Basically this is the same as makers of surf boards moaning about tourists bringing their own surf board to Thailand - I'll lose business - maybe

[ChaiyaTH]

10 minutes ago, RichardColeman said:

Basically this is the same as makers of surf boards moaning about tourists bringing their own surf board to Thailand - I'll lose business - maybe

Well in a way, yes, many of these International sport groups that do events in another country every year, or just go to another country with all their people once a year, avoid Thailand as of the issues with regulations, they would need work permits for their own instructors, for the 1-2 weeks event or hire Thais that would be useless. 

 

Basically nobody here wants to organize anything, nor bring their own groups of travellers as a small travel company guide abroad, because you are always being hunted down like a jew during WW2, as soon you do anything commercial or appearing to be commercial.

 

That's why Thailand became so super dull and boring too. Only a few big players can do this, for them it's no issue to obtain the paperwork or staff etc.

Edited Tuesday at 02:12 AM by ChaiyaTH

[Henryford]

1 hour ago, daveAustin said:

 Couldn’t care less about more competition for hotels (that’s good for everyone else), more so that greedy Chinese property types will buy up more of the market. 

 

You would care if you lived in a condo and it was full of daily Chinese tourists spitting and crapping in the pool.

[ikke1959]

1 hour ago, ChaiyaTH said:

Yeah then the Chinese mafia just buys 75% and then buys 25% in Thai people their names, who they control, now they run a building.

It is not one or 10 appartments it is about the whole building....

[ChaiyaTH]

1 minute ago, ikke1959 said:

It is not one or 10 appartments it is about the whole building....

That's not even that much more unusual, if you then take a Business man from that same Shanghai city, he could likely buy 6-10 floors, a small building. Now let alone if they form groups, which they do. It's peanuts for them to do.

Edited Tuesday at 02:42 AM by ChaiyaTH

[brianthainess]

29 minutes ago, ChaiyaTH said:

 

That's why Thailand became so super dull and boring too.

There are many things wrong in Thailand, but dull and boring it is not !

[ChaiyaTH]

Just now, brianthainess said:

There are many things wrong in Thailand, but dull and boring it is not !

You must have been living under a rock if you didn't see how everything in nightlife, activities and more has been in a heavy downtrend ever since 2019. No matter where you go, even nana or soi 6 in pattaya, it's not close to how it once was. And that is just one thing, I was talking other events.

Everything here is just simple, same shopping streets, there is barely variety.

Edited Tuesday at 02:43 AM by ChaiyaTH

[Gottfrid]

Yeah, it will really hit them hard. Must be 100s of thousands of foreigners who come to holiday and buy a condo instead of staying at hotel. More over, soo many of the long time expats Live permanently at hotels instead of houses and condos. Maybe they should just consider the difference instead of spouting their usual low intelligent garbage.

 

After that to the real issue voiced by Mr. Dino.

6 hours ago, webfact said:

Tianprasert Chaipattananon, President of the THA, stated that the Ministry of Finance is preparing to propose this policy to the Cabinet. Chaipattananon voiced strong objections, arguing that increased foreign ownership would allow condos to be rented out on a daily basis, thereby directly competing with hotels and causing potential price wars.

Should not be a concern, as there are already rules and laws that prohibit daily rental of apartments. Would be better he voiced his concern over that it´s not enforced.

[brianthainess]

Just now, ChaiyaTH said:

You must have been living under a rock if you didn't see how everything in nightlife, activities and more has been in a heavy downtrend ever since 2019.

So you base the whole of Thailand just on 'Nightlife Activities' I think it is you living under a rock. 

[Pouatchee]

2 hours ago, ikke1959 said:

but the whole building?? who on earth would buy a whole block of condos?? It needs many many millions 

 

chinese/russian wealth might just astound you

[ChaiyaTH]

1 minute ago, brianthainess said:

So you base the whole of Thailand just on 'Nightlife Activities' I think it is you living under a rock. 

That's the main thing that Thailand offers yes, the rest is just classical things that are not extraordinary such as: beaches, mountains, temples, some basic water parks and general activities you have basically anywhere already, and they cost a lot most times. 

That is the entire reason they have been trying since 5 years to diversify the offerings here from TAT and Gov side. It is also clearly visible in guesthouses etc, there is way less offerings and flyers than there once were, or they simply not run at all during low season. To not start about that half is not maintained and old (zoo's, waterparks etc etc).

[mokwit]

6 hours ago, webfact said:

Chaipattananon voiced strong objections, arguing that increased foreign ownership would allow condos to be rented out on a daily basis, thereby directly competing with hotels and causing potential price wars.

IMO liberalisation of ST lets is next to stimulate the condo market, so it will be Thais buying to ST let also.

[mokwit]

7 minutes ago, Gottfrid said:

After that to the real issue voiced by Mr. Dino.

Should not be a concern, as there are already rules and laws that prohibit daily rental of apartments. Would be better he voiced his concern over that it´s not enforced.

There is very little resolve to enforce when the majority of owners in a condo bought to let out. As I said, IMO liberalisation of ST lets is next.

[newnative]

8 minutes ago, Gottfrid said:

Yeah, it will really hit them hard. Must be 100s of thousands of foreigners who come to holiday and buy a condo instead of staying at hotel. More over, soo many of the long time expats Live permanently at hotels instead of houses and condos. Maybe they should just consider the difference instead of spouting their usual low intelligent garbage.

 

After that to the real issue voiced by Mr. Dino.

Should not be a concern, as there are already rules and laws that prohibit daily rental of apartments. Would be better he voiced his concern over that it´s not enforced.

Agree.  The hotel group should use its clout to get more enforcement of the daily rental ban.

[mokwit]

2 minutes ago, newnative said:

Agree.  The hotel group should use its clout to get more enforcement of the daily rental ban.

I suspect the condo building industry has greater clout.

[newnative]

2 hours ago, ikke1959 said:

Maybe start with the proper registration of the 25.000 which don't have it now.... and a single condo can be owned already by foreigners, but the whole building?? who on earth would buy a whole block of condos?? It needs many many millions 

    There are plenty of rich that can buy whole blocks of condos.  At one of the condos I lived at, a Chinese man had bought at least 40 condos in the project, probably more.  At one of the annual meetings, he stood up and said he pays over a million baht a year in condo maintenance fees on the condos he owns so why shouldn't he be allowed to rent his condos on a daily basis.  Well, it's illegal, dude, that's why.  And, your fellow condo owners don't want to live in a busy hotel.

    Basically, he, and many others, have bought multiple units in condo projects and have set up boutique hotels within the project.  That's how you make money with daily rentals--you need volumn to offset the costs for room cleaning staff, staff to handle the check-ins, scheduling, billing, etc.   These jokers save a lot of money by using the condo staff to handle all the other hotel staffing duties--guest issues, problems, emergencies, complaints, etc., building, swimming pool and gym maintenance, gardening, garbage, security, building cleaning, etc.   Cheaper to buy 40 condos in a condo project than to build, staff, and maintain a 40-unit hotel that meets all the licensing requirements of a hotel.