Thai Interior Ministry set to eliminate illegal hotels

[webfact]

Interior Ministry set to eliminate illegal hotels

BANGKOK, 21 Jan 2015, (NNT) - The Ministry of the Interior is set to eliminate illegal hotels, as it has finished the charter draft, amending the related 2008 hotel law. The code will be reviewed by the National Legislative Assembly within 2-3 months before sent to the Cabinet for further consideration.

The President of the Thai Hotel Association Surapong Techaluhwijit commented that the code would be in effect, if it received the required approval, in July or August this year.

He said that the new regulation would force illegal hotel operators to register their businesses with the authority. Currently there are 80-thousand accommodation rooms operating with appropriate licenses, accounting for just 20% of the total number of 360 thousand hotel rooms in the Kingdom.

The new code would seek to imprison violators for up to a year and fine them up to 20-thousand baht. An additional daily fine of 10-thousand baht, would be accrued by operators who persist in running an illegal hotel, after being charged.

The move is likely to bump up room prices in hotels by the end of this year or early next year, as a large number of illegal operators will enter the legitimate market when the new code take effect.


-- NNT 2015-01-21

[h90]

imprison 1 year?

[impulse]

Wow. Imagine the effect on tourism if they shut down 80% of the available rooms. Not to mention the price increase on the 20% of rooms that are still on offer...

Wet dream for some, nightmare for most.

[iReason]

"Currently there are 80-thousand accommodation rooms operating with appropriate licenses, accounting for just 20% of the total number of 360 thousand hotel rooms in the Kingdom."

Another example of an outlaw nation.

[madmitch]

I would hazard a guess that very few small hotels register with the Thai Hotels Association yet many do register with the local tessabaan/OrBorJor whatever it is, though plenty don't even bother to do this.

Let's see what they come up with, how simple the process is and how much it will cost. Or will it simply be forgotten about?

[simon43]

I would hazard a guess that very few small hotels register with the Thai Hotels Association

... because said association does not accept applications from small hotels. I tried since 10 years ago and was rejected every time because my hotels had less than 12 rooms.

My businesses are correctly registered with the local government departments, but this news item smacks of the bigger players simply trying to remove the competition from smaller hotels.

[clockman]

The enigma, That is Thailand!

[HeijoshinCool]

One more nail in the coffin ….

[konying]

I would hazard a guess that very few small hotels register with the Thai Hotels Association

... because said association does not accept applications from small hotels. I tried since 10 years ago and was rejected every time because my hotels had less than 12 rooms.

My businesses are correctly registered with the local government departments, but this news item smacks of the bigger players simply trying to remove the competition from smaller hotels.

Simon, i do not think being member with Hotel association is a requirement. I would guess one would have to be a registered Thai company(many thai owned small guesthouses are not a company, ie no tax or vat paid or collected)

Also I would guess a requirement would be to have license to rent rooms.again many Thai owned guesthouses do not have it.

Most bars with rooms above do not have it.

I think this new charter is aimed at busting those operators, which do make up a large number of "hotels" or rooms for rent.

In a way, its a good news, because those 500 baht rooms really do hurt real business operators such as yourself and myself.

But the million dollar question is, Where is or what is the new code?

Edited January 21, 2015 by konying

[eldragon]

Dammit, is this another move to make it more difficult to have a small business? One of my favorite things about TH is the way almost anyone with an idea and a little capital can start a business.

[Thai at Heart]

Dammit, is this another move to make it more difficult to have a small business? One of my favorite things about TH is the way almost anyone with an idea and a little capital can start a business.

Have you really looked at the rules and regs for a company in thailand.

[NeverSure]

So the big boys are going to put the hammer to the little guys who have a few rooms above their bar or other business. What a nice way for the big boys to increase room rates.

TiT. When business is slow, raise prices.

Of course the government wouldn't have any ulterior motives for its moneyed friends.

[eldragon]

Dammit, is this another move to make it more difficult to have a small business? One of my favorite things about TH is the way almost anyone with an idea and a little capital can start a business.

Have you really looked at the rules and regs for a company in thailand.

There are rules here?

[MaiChai]

One of the things i love about Thailand is the abundance of cheap resort type hotels that offer rooms around 500 baht a night. Now they are going to kill this off because the big boys want us to stay in 4* international style hotels and pay at least 2000 baht a night ? More regulation will mean more costs to hoteliers who will pass the cost on. Hopefully the legislatures will see through this! Illegal hotels? Whats that?

[Gunna]

So the big boys are going to put the hammer to the little guys who have a few rooms above their bar or other business. What a nice way for the big boys to increase room rates.

TiT. When business is slow, raise prices.

Of course the government wouldn't have any ulterior motives for its moneyed friends.

This is just enforcing a law/procedure that has always been in place

" Any hotel that has more than 4 rooms or may accommodate more than 20 guests must obtain a license to operate a hotel business from the Department of Provincial Administration for hotels located in Bangkok, or from the Provincial Governor’s Office for other areas."

Pretty simple really

So 80% of hotel rooms owners have been too lazy to register and are currently operating illegally.

Probably don't want to get caught up having to pay income tax or have any hotel inspections.

I wonder if any of their building/liability insurance is valid - ie not covered when operating an illegal business.

[surangw]

I foresee a lot of small hotels calling themselves home stay residences

[Thai at Heart]

Wealthy pooyai, pulls in a favor to get the little guys squished.

Nowhere does it explain quite what is in it for consumers or what benefit any of this is.

[monkey dog]

that should see a vast reduction of all the those complaints on here against hotels <squints eyes, looks left, scratches top of back of head>

<<loud cheering sounds emanating from cambodia, laos, and malaysia are heard booming across the borders>>.

Edited January 21, 2015 by monkey dog

[mitsubishi]

I would hazard a guess that very few small hotels register with the Thai Hotels Association

... because said association does not accept applications from small hotels. I tried since 10 years ago and was rejected every time because my hotels had less than 12 rooms.

My businesses are correctly registered with the local government departments, but this news item smacks of the bigger players simply trying to remove the competition from smaller hotels.

They've been pushing for this for a while now.

All the budget hotels in Bangkok are almost all gone, big and mid-range hotels rule the roost.

No place for small-hotels working outside the system now alas.

[trogers]

I think the new regs are targeting vacant condo units being rented out short term, rather than small hotels which are registered with local authorities.

[monkey dog]

prostitution being a major culture defining industry must get a look in here somewhere.

[rametindallas]

One of the things i love about Thailand is the abundance of cheap resort type hotels that offer rooms around 500 baht a night. Now they are going to kill this off because the big boys want us to stay in 4* international style hotels and pay at least 2000 baht a night ? More regulation will mean more costs to hoteliers who will pass the cost on. Hopefully the legislatures will see through this! Illegal hotels? Whats that?

This might be the way they are going to get 'quality' tourists. Of course, they will lose every other type of tourist in the process. As usual, I don't think they have thought their cunning plan through.

[Basil B]

if 80% are not registered, could be interesting if they basically all went on strike, kick out guests and close down until the government relented...

[bkkjames]

next will be the airbn b types that from what I can tell - pay no taxes.

[mca]

So the big boys are going to put the hammer to the little guys who have a few rooms above their bar or other business. What a nice way for the big boys to increase room rates.

TiT. When business is slow, raise prices.

Of course the government wouldn't have any ulterior motives for its moneyed friends.

This is just enforcing a law/procedure that has always been in place

" Any hotel that has more than 4 rooms or may accommodate more than 20 guests must obtain a license to operate a hotel business from the Department of Provincial Administration for hotels located in Bangkok, or from the Provincial Governors Office for other areas."

Pretty simple really

So 80% of hotel rooms owners have been too lazy to register and are currently operating illegally.

Probably don't want to get caught up having to pay income tax or have any hotel inspections.

I wonder if any of their building/liability insurance is valid - ie not covered when operating an illegal business.

When I worked in hospitality for one of the major hotel chains we had to jump through a Ringling Brother's worth of hoops to obtain a hotel license and undergo multiple inspections. As a lot of these inspections were to do with the safety, security and well being of our guests I for one was happy that there was at least one Thai entity that weren't a bunch of slack &lt;deleted&gt;. And to answer the question that hasn't been asked in the three hotel licenses I've been involved in in some form or another there wasn't any suggestion of "If you give us a "gift" we'll look the other way"

[HiSoLowSoNoSo]

"The move is likely to bump up room prices in hotels by the end of this year or early next year" and tell the budget airlines to increase their rates at the same time. Is this their master plan to get only "Quality Tourists" coming to Thailand?

Maybe they should consider how many thousands of Thais will lose their jobs if they close down (eliminate) 80.000 hotel rooms nationwide. A country with very nice people ruled by HiSo morons.

[noitom]

"What me worry?" - Alfred E. Newman

[greenchair]

Dammit, is this another move to make it more difficult to have a small business? One of my favorite things about TH is the way almost anyone with an idea and a little capital can start a business.

These last few months have been very hard on the small business owners who are no longer protected by human rights laws. The right to make a living.

The economic necessity laws.

The good governance law.

This is a great time for big business to get the boot in at the small fish.

The food stalls and side walk coffee shops taking business from the shopping malls.

The home tutors taking business from the private schools.

The small home hotels taking business from the big hotels.

Or is it the other way around. All of these small type of business go back hundreds of years. To a time when there were no schools, malls and resorts.

Let the big ones close down and the little ones continue to care for people as they have done for hundreds of years.

[WhamBam]

I like the 500 Baht a night rooms when I am out and about roaming Thailand. Why should I have to pay more? This stinks too.

[monkey dog]

So the big boys are going to put the hammer to the little guys who have a few rooms above their bar or other business. What a nice way for the big boys to increase room rates.

TiT. When business is slow, raise prices.

Of course the government wouldn't have any ulterior motives for its moneyed friends.

This is just enforcing a law/procedure that has always been in place

" Any hotel that has more than 4 rooms or may accommodate more than 20 guests must obtain a license to operate a hotel business from the Department of Provincial Administration for hotels located in Bangkok, or from the Provincial Governors Office for other areas."

Pretty simple really

So 80% of hotel rooms owners have been too lazy to register and are currently operating illegally.

Probably don't want to get caught up having to pay income tax or have any hotel inspections.

I wonder if any of their building/liability insurance is valid - ie not covered when operating an illegal business.

When I worked in hospitality for one of the major hotel chains we had to jump through a Ringling Brother's worth of hoops to obtain a hotel license and undergo multiple inspections. As a lot of these inspections were to do with the safety, security and well being of our guests I for one was happy that there was at least one Thai entity that weren't a bunch of slack <deleted>. And to answer the question that hasn't been asked in the three hotel licenses I've been involved in in some form or another there wasn't any suggestion of "If you give us a "gift" we'll look the other way"

the most hazardous things i have encountered in many thai hotels is not from within but from without. namely the putrid stench from the public flowing water eg klongs and gutter drains.. no money involved in fixing that so it doesnt get fixed