Cabinet approves the bill cutting room fee for hoteliers to 40 baht per room per year

[webfact]

Cabinet approves the bill cutting room fee for hoteliers to 40 baht per room per year

BANGKOK, 10 June 2015 (NNT) - The Cabinet yesterday approved a bill that will reduce accommodation fees which hotel business owners have to pay to the Interior Ministry each year. Once sailing into law, the legislation will cut the fee to 40 baht per room per year, which is only half of the existing rate.

The announcement was made by Deputy Spokesperson of the Prime Minister’s Office, Major General Sansern Kaewkamnerd. At the press conference, he said the Cabinet deemed that the reduction would ease the financial burdens of all hotel operators.

The Cabinet this week also requested governmental units which planned to hold annual study trips for their staff in foreign countries to organize them locally, in order to promote domestic tourism. Major General Sansern also stressed that the selection of accommodations for such a trip must give priority to hotels that operate legally.


-- NNT 2015-06-10

[Mango Bob]

The government is coming down hard on government units who wanted to go on a boondoggle overseas, but now you got to stay in a legal resort. A double damn damn.

[Ricardo]

Wonder what the government do, to earn this room tax ?

Does it go to pay for the TAT to make up their statistics ?

[halloween]

Wow, hotel owners can now comfortably cut their room rate by 25 satang per night. That should be a major boost for tourism.

If B30 for a hospital visit isn't worth collecting, what's the nett revenue on B40/hotel room/year?

[chickenslegs]

I expect the hoteliers will pass on the savings to their customers.

I am looking forward to a reduction of 11 Satang per night on my hotel bills.

[amykat]

But the purpose of the cut is to "ease the financial burden" of the hotel operators ....not the customers ...so no passing on that 11 satang .

[phoenixdoglover]

So you think this is small potatoes, huh?

Well, a 50 room hotel will now save 2000 baht per year.

Let's compare that to revenue.

Assuming a modest 50% occupancy rate and a room rate of 500 baht per night. The annual revenue would be (click, click...damn!, click, click)

4,562,500 baht.

So this cost savings is 0.044% of revenue.

Break out the Leo. We're having a party tonight!

[Sydebolle]

Well, that should fix:
- all problems related to tourism and
- put all hotels back into the black

We salute you - a bow is in order ;-)

[Srikcir]

Increasing borrowing and making more populist subsidies but cut revenues.

This government may run out of funds before the end of the year.

Say goodbye to the USD's in Thailand's foreign reserve.

Edited June 10, 2015 by Srikcir

[Banzai99]

Don't panic guys, chosen people ( and their families) will be flown first class to forgien countries to see how they manage things there, come back, report and nothing will change.