Report Thai Hotels Warn of Job Cuts Amid Proposed Wage Hike

[snoop1130]

Photo courtesy of Bangkok Hotels & Resorts

 

The Thai Hotels Association (THA) has expressed serious concerns about potential mass layoffs in the hotel industry if the government goes ahead with plans to increase the daily minimum wage to 400 baht next week. The association has urgently appealed to the prime minister, seeking to halt this proposal.

 

La-iad Bungsrithong, an advisor with the THA, pointed out that five-star hotels in Chiang Mai have already felt the pinch after a 14% rise in wage costs since last year when the 400 baht minimum wage was first introduced. This change initially affected major tourism hotspots such as Chiang Mai and Phuket, where hotels adjusted wages twice this year alone.

 

Starting 1st July, the Labour Ministry intends to enforce this wage increase on two-star hotels and those with more than 50 rooms. For Chiang Mai, this means a jump from the 2024 minimum of 350 baht, marking a more than 12% hike. Other destinations like Chiang Rai and Phang Nga might experience a 13.6% increase, the THA reports.

 

La-iad emphasised the struggle faced by upper-scale hotels to manage their operational costs. With wages potentially making up 35-45% of expenses, including benefits, the timing of this policy is seen as problematic, especially during the low season and amidst rising energy costs triggered by geopolitical tensions in the Middle East. Hotels may be forced to cut staff due to insufficient revenue to meet these rising costs.

 

THA Southern Chapter President, Suksit Suvunditkul, highlighted that provinces with lower current wage rates, particularly in the Deep South, could be hit hardest, facing an 18.7% rise. The low season only exacerbates the challenge, compounded by a dip in visitors from China and the Middle East.

 

In Phuket, hoteliers have previously adapted to the wage increase, raising pay for 30% of staff and adjusting for experienced workers, resulting in a 60% total wage increase. Suksit noted that payrolls often represent 25-30% of operational costs in the high season, potentially soaring to 50% during quieter months, threatening further layoffs and instability.

 

Despite the pandemic’s impact, reducing staff numbers, hotels now prefer to employ multi-skilled individuals. While using casual staff allows flexibility, it doesn't necessarily cut costs due to the need for training to maintain service standards.

 

The THA appealed last week for reconsideration of this policy, citing the potential 10-15% rise in operational costs amid a sluggish economy as unmanageable. The association continues to push for solutions that balance fair wages with sustainable business practices.

 

  Adapted by ASEAN Now from The Thaiger 2025-06-24

 

 

[blaze master]

Why would they be cutting jobs when agoda searches are soaring.

[hotchilli]

19 hours ago, snoop1130 said:

The Thai Hotels Association (THA) has expressed serious concerns about potential mass layoffs in the hotel industry if the government goes ahead with plans to increase the daily minimum wage to 400 baht next week. The association has urgently appealed to the prime minister, seeking to halt this proposal.

Total BS

[jcmj]

They are just too greedy. They increase the prices for a rooms by at least 1,000 baht, usually much more during high season and any holidays, but don’t want to pay the staff 50 baht more a day? The costs go up, the rooms go up and the living expenses go up so should the workers pay. Unfortunately the ones who are not doing their jobs well may be let go, but the ones who put in the most effort should at least have a livable wage. 

[terryofcrete]

The average wage in Thailand is low and contributes to the reason why it's cheap to visit or live in Thailand. If they paid a decent wage prices would have to rise but at the moment they are rising anyway from exploitation and greed. 
I have seen many products in 7/11 that are as expensive as my own Country, Ireland , which is the second most expensive country in the EU.yes, import taxes , which are ludicrous, do account for this, wine being the best example, but sheer profiteering is rife. 

[DezLez]

7 minutes ago, terryofcrete said:

The average wage in Thailand is low and contributes to the reason why it's cheap to visit or live in Thailand. If they paid a decent wage prices would have to rise but at the moment they are rising anyway from exploitation and greed. 
I have seen many products in 7/11 that are as expensive as my own Country, Ireland , which is the second most expensive country in the EU.yes, import taxes , which are ludicrous, do account for this, wine being the best example, but sheer profiteering is rife. 

But are those items local Thai foodstuffs or imported luxury/electronic type items?

[Andycoops]

Reporting since COVID has been that hotels, restaurants etc are having trouble recruiting staff, clearly there is some fake news on one side or the other.

[Srikcir]

On 6/24/2025 at 5:29 PM, snoop1130 said:

The association continues to push for solutions that balance fair wages with sustainable business practices.

Increase room occupancy?

Create hotel associations that allows interchangeable staffing, economy of scale to reduce costs without firing employees.

[ThaiPauly]

It's only fair that low paid workers should earn enough to live on.

At 400 a day that's only 2 grand a week....not enough with prices rising everywhere, yet that's all they are gonna get.

If we foreigners have to pay a bit more so that Somchai can put a roof over his head and feed himself I think we wouod all be happy to pay a bit more so that can happen

[bkk6060]

It is BS.  Hotel prices in the popular tourist areas are almost western rates.  And, they complain about paying these workers $12 a day?  Cheap, shameful, and disgusting.

[Hummin]

18 hours ago, jcmj said:

They are just too greedy. They increase the prices for a rooms by at least 1,000 baht, usually much more during high season and any holidays, but don’t want to pay the staff 50 baht more a day? The costs go up, the rooms go up and the living expenses go up so should the workers pay. Unfortunately the ones who are not doing their jobs well may be let go, but the ones who put in the most effort should at least have a livable wage. 

 

 

They also have if I can make a raw estimate double the staff of a western hotel. 

 

7/11 here they have 3 times the staff you normally see back home. Means they will work harder for more money? 

[black tabby12345]

Dilemma of pay rise.

Higher wage/salary often leads to the increased workload on individuals as the employer cannot afford to keep the same numbers of people.

Especially when they are operating on narrow profit margin.

[captain_shane]

Such greed. Someone booking a 1k baht room covers the increase for 20 employees. Even 400 is ridiculously low, people at CJ make 585+ per day.

[SAFETY FIRST]

On 6/24/2025 at 5:54 PM, blaze master said:

Why would they be cutting jobs when agoda searches are soaring.

Perhaps all illegal Airbnb accommodation, not hotel bookings. 

 

[greeneking]

5 hours ago, ThaiPauly said:

It's only fair that low paid workers should earn enough to live on.

At 400 a day that's only 2 grand a week....not enough with prices rising everywhere, yet that's all they are gonna get.

If we foreigners have to pay a bit more so that Somchai can put a roof over his head and feed himself I think we wouod all be happy to pay a bit more so that can happen

Yes, I would. But not so tax avoiding billionaires can profit even more.