Thailand Faces Backlash Over Rise of Illegal Hotel Operations

[webfact]

File photo for reference only. Courtesy: Wikipedia

 

Thailand's thriving tourism industry is facing a new challenge: the surge in illegal hotel operations. Particularly in hotspots like Phuket and Bangkok, the practice of renting out residential properties as short-term lodging is raising concern.

 

The Thai Hotels Association (THA) has highlighted this issue, pointing fingers at both foreign and local investors for circumventing the Hotel Act's regulations, which stipulate a minimum 30-day rental period for such accommodations.

 

Recent incidents, such as the chaos caused by a foreign national in a Bangkok condo, have brought this issue into the spotlight. These short-term, daily rentals often disrupt neighbourhoods, drawing the ire of local residents and creating tensions within communities.

 

Phuket, renowned for its upscale villas, has seen a significant portion of its luxury properties snapped up by Russian investors. Meanwhile, in Bangkok, Chinese buyers frequently scoop up entire blocks of condos, sometimes even whole villages of high-end single houses, transforming them into short-term rental hubs complete with tourist shuttle services.

 

This rampant growth of illegal accommodations is causing alarm among tourism and hospitality professionals. Thienprasit Chaiyapatranun, president of the THA, stresses the need for stricter regulations, particularly limiting the number of properties a foreign buyer can acquire.

 

This, he argues, would prevent the monopolisation of condo floors for illegal rental purposes, ensuring fair distribution of ownership opportunities across developments.

 

The burden of illegal activities extends to the tourism sector's reputation. Sisdivachr Cheewarattanaporn, president of the Association of Thai Travel Agents (Atta), voiced concerns over Thailand’s image as a place where money supposedly makes law-breaking possible.

Weak law enforcement, he asserts, undermines confidence and safety, discouraging potential visitors in a post-pandemic tourism recovery landscape.

 

Despite governmental crackdowns on organised crime, the anticipated rebound of Chinese tourists is not yet in full swing. Currently, daily arrivals from China are around 10,000, considerably down from the 30,000 daily visits seen in 2019. Illegal work practices among foreigners are also chewing into local job opportunities, adding another layer of complexity to the situation.

 

In response, the government is being urged to consider reducing the visa-free stay duration from 60 to 30 days for citizens of 93 countries. This policy adjustment could help curb the influx of those leveraging lenient visa durations for unauthorised activities.

 

However, the Tourism Authority of Thailand’s aim of attracting 8-9 million Chinese visitors this year might fall short unless these safety and regulatory challenges are adequately addressed.

 

The rise of illegal hotel practices not only threatens the local economy but also tests the resilience of Thailand's tourism sector. With decisive action, the country hopes to protect both its communities and its cherished tourist industry, reported Bangkok Post.

 

-- 2025-02-25

 

 

[Geoffggi]

32 minutes ago, webfact said:

Particularly in hotspots like Phuket and Bangkok, the practice of renting out residential properties as short-term lodging is raising concern.

 

I think we all know who the main culprits are for this ...............LOL

[soi3eddie]

I'm surprised that the Thai Hotel Association (THA), haven't been raising this issue loudly before in protection of their members. Just what have they been doing?

 

I know of one condo building in Pattaya, that has a huge number of rooms rented to short term rentals. Place really is a nightmare for many residents. So much so, that resident owners and long term occupants, use the service lifts to get their floors. Apparently, one owner/business has acquired so many units in the building for short term rentals, that they use a couple of units simply as laundry/servicing facilities.

 

[BayArea]

I can't help but LOL when these stories come up regrading misuse property for illegal Airbnb or hotel operations.

what did this joke of a government and TAT expect when they ALLOWED everyone and their mother in LOS for the sake of the precious baht????

SOM NOM NA!!!!!

[blaze master]

58 minutes ago, webfact said:

However, the Tourism Authority of Thailand’s aim of attracting 8-9 million Chinese visitors this year might fall short unless these safety and regulatory challenges are adequately addressed.

 

When I first came to Thailand in 2003 this was close to the total number of yearly tourists.

 

Na it'll be fine.

[BayArea]

1 hour ago, blaze master said:

 

When I first came to Thailand in 2003 this was close to the total number of yearly tourists.

 

Na it'll be fine.

pure and utter greed and the competition to be #1 in SE Asia tourism has shattered any mode of decorum remaining in Thailand

[Tropicalevo]

2 hours ago, soi3eddie said:

I'm surprised that the Thai Hotel Association (THA), haven't been raising this issue loudly before in protection of their members. Just what have they been doing?

 

They have been raising this issue for years.

Lots of villas here have had to pay for 'hotel and pool' licences every year.

A nice little earner for the lawyers and accountants.

Now the word 'hotel' is crossed out on the document and replaced with 'villa'.

[factual monk]

Thailand needs Chinese tourists... and they are the major contributors... Good or bad is not the point... it all depends on an individuals perception.  I simply know it because after traveling across Thailand last 14 years... I have seen increased presence of Chinese in hotels across the Thailand, increased signboards in thai markets with Chinese language and announcements in MRT, BTS, Airport etc... it's in Thai, english , followed by Chinese... so it's quite clear... 

[ikke1959]

Where is the Chamber of Commerce for?? All businesses should be registered, without any exception, and it should be checked if they work confirm their contracts.. Illegal hotels would be impossible as all businesses needs an accountant, tax pay, and annual fee for the Chamber of Commerce, register in the place where the business is and in case of condos you only can have one appartment to live in and  if you only can rent to long stayers with a contract for at least 5 months, and of course announce it to the immigration.

[bkk6060]

I certainly would not want it where I live.

NiMBY:  not in my back yard.

 

But, I admit I do ST rentals.   Can't blame people I stayed in  new  1 br condo with 2 TVs, a great kitchen, pool, gym in Bangkok for 5 days a few weeks ago for 1/3 the price of a hotel.  I usually don't complain, but hotel prices for a good hotel in Bangkok now seem outrageous. 

[hotchilli]

7 hours ago, webfact said:

Phuket, renowned for its upscale villas, has seen a significant portion of its luxury properties snapped up by Russian investors. Meanwhile, in Bangkok, Chinese buyers frequently scoop up entire blocks of condos, sometimes even whole villages of high-end single houses, transforming them into short-term rental hubs complete with tourist shuttle services.

Making money out of a first/second home for locals or foreigners... it's an investment.

Something the hotels don't like.... competition.

 

[kingstonkid]

5 hours ago, BayArea said:

pure and utter greed and the competition to be #1 in SE Asia tourism has shattered any mode of decorum remaining in Thailand

 

The challenge is not that they are renting out units which is a probelm BUT that if I don't miss my guess none of that money for rental comes to Thailand.  All deals are probably paid for in avance in Chinese funds and never make it to thailand.

 

Developers like Sansiri and Supalai don't care they just need to sell units and thais can not afford them.

[richard_smith237]

Its the Chinese...     often renting out these properties as 'party houses'...  Making it a nightmare for neighbours... 

 

In our MooBaan... the police were recently called on a house and the 'rented residents' taken away (drugs were found) - owners received a litter from the Juristic office and the Police I believe. 

 

Its a pretty strong community where I live, so I'm glad residents will not stand for it.. 

 

But once this behavior reaches critical mass, even complaining won't be enough and things could turn nasty.

 

 

 

[Felt 35]

Where I rent there is a notice on each floor in the low season that says the minimum rental period is 30 days and if you do not follow this you can be punished with a fine and even imprisonment. In the high season the notice is gone, and the management of the apartment complex look down (high season) every time I who have asked the question about that type of rental meet one of them in the hallway. Who owns the building...🤫... if I remember correctly, he was the prime minister a few months ago🙃

Felt 35