Hotel association calls for hotel legalisation to stop price war, better safety standards

[rooster59]

Hotel association calls for hotel legalisation to stop price war, better safety standards

 

Thai Hotels Association has called on the government to legalize all hotels in the country as now more than half operating without licenses, thus creating price war and affecting tourism.

 

Association president Supawan Tanomkiatpum gave a figure of some 400,000 cheap hotel rooms throughout the country, over half or some 270,000 rooms were illegal.

 

She said the figure did not include rooms in condominiums and service apartments which were converted to provide renting on a daily basis.

 

As a consequence, this has caused price war and zero dollar tours, she said.

 

She admitted that the hotel room rate in the country was very low because the illegal hotels were not regulated and there were many illegal hotel operators.

 

Full story: http://englishnews.thaipbs.or.th/hotel-association-calls-hotel-legalisation-stop-price-war-better-safety-standards/

 

 

 

-- © Copyright Thai PBS 2016-12-25

 

[Somtamnication]

In other words, they are overpriced and do not want any competition. Understood! 

[ezzra]

And in another words 2, reward all those rough law barkers that has put

lives at risk by not having a license to operate thus not subject to quality

and safety scrutiny.... this a normal thing in Thailand, to always ' forgive

and forget " policy, encouraging people to bypass and circumvent the law

knowing that they will be forgiven.... 

[z42]

In my opinion the exceptionally good pricing, range, and overall value for money associated with Thai hotels is 1 of Thailand's biggest plus points.

It would appear that those charging inflated price don't like the competition and are feeling the pinch of the slowest high season in years.

 

On a side note. Safety wise. Maybe the best solution is to ban balconies altogether, or at least in Pattaya & BKK as the fall rate from them must be 100's of times the global average

[trogers]

6 minutes ago, z42 said:

In my opinion the exceptionally good pricing, range, and overall value for money associated with Thai hotels is 1 of Thailand's biggest plus points.

It would appear that those charging inflated price don't like the competition and are feeling the pinch of the slowest high season in years.

 

On a side note. Safety wise. Maybe the best solution is to ban balconies altogether, or at least in Pattaya & BKK as the fall rate from them must be 100's of times the global average

 

Why ban balconies? Some enjoy the view and fresh air from them. Rather, ground those heavy drinkers, or, convert some upper rooms with cage bars at the balconies... ?

 

That's how beasts are confined...

[trogers]

Seems there is a common denominator among these words: illegal, unregulated, balconies, cheap and jumpers.

 

I don't hear many jumping stories from those three to five star hotels...

[futsukayoi]

1 hour ago, Somtamnication said:

In other words, they are overpriced and do not want any competition. Understood! 

 

While I agree that they should not be protected from any fair competition I do feel some sympathy if they are losing business solely due to others being able to reduce price by flaunting regulations.  Either enforce the regulations so Air BnB and the like compete on a flat playing field or drop the regulations for all.

[Elkski]

I wont ever pay 4000  baht for a BKK hotel again.,,,   It was barely ok when in a nice beach side place but no way to justify these high costs in Thailand.  no way does it deserve more than 50% of USA prices.

[smedly]

55 minutes ago, futsukayoi said:

In other words, they are overpriced and do not want any competition. Understood

 

56 minutes ago, futsukayoi said:

 

While I agree that they should not be protected from any fair competition I do feel some sympathy if they are losing business solely due to others being able to reduce price by flaunting regulations.  Either enforce the regulations so Air BnB and the like compete on a flat playing field or drop the regulations for all.

Hotel association = price fixing cartel.......but not everyone is going to the meetings it seems

 

welcome to the world of competition and free trade

 

as for standards in Thailand......................no such a thing

[The man from udon]

Shouldn't really effect any hotels as TAT say there are so many millions more tourists  coming the hotels must be bursting at the seams.

[Ricardo]

Competition is a four-letter-word, inTinglish !

 

But ALL hotels/guesthouses need fire-escapes/extinguishers/notices-in-rooms/safety-inspections, killing one's customers is bad for business !

[madmitch]

Surely a price war is good for tourism?

 

 

[Enoon]

1 hour ago, madmitch said:

Surely a price war is good for tourism?

 

 

 

But not welcome in a country where legislation is structured specifically to maintain monopoly and dissuade competition.

 

In commerce, politics and thought.

 

 

[PaoloR]

It seems, as usual, that many people are commenting on this topic with no understanding of the situation.

I own and run a hotel and, being foreign owned, have to make sure that all the legal requirements are met.

This includes:

Fire extinguishers, smoke alarms, escape route signage, emergency lighting and many other requirements.

Unlicensed hotels have not had to comply with these regulations and can be death traps. You don't need a fire extinguisher until the fire starts; when you do need it, you want to be sure it actually works! You think you know your way out of a hotel until you can't see for the smoke, no signage and no light can lead to death.

There is no wish to protect a monopoly and dissuade competition  - there is a wish for everyone to play on a level and safe playing field.

A country reliant on tourists for income that does not regulate the buildings they stay in is just asking for a problem. This government is finally doing something, albeit late in the day, to clear up this potentially dangerous situation and all we get on TV is people accusing legal hotels of being over-priced and scared of competition!

[WhizBang]

Ah, the old 'Zero Dollar Tour' chestnut.   So how exactly would the pricing of hotel rooms be associated with zero dollar tours.  In fact, nothing in the article is about zero dollar tours, just one person's silly comment.    Just an attempt at fear mongering.

 

However, I do agree with making sure ALL hotel/BnB rooms are legal and up to standards appropriate for the room type.  THAT is a problem with the police and government agencies that are supposed to enforce regulations.  So start with the enforcement agencies and police.  Fix that and the rest will fall in line.

 

On the other hand competition is what makes the world work and customers can choose who to support with their wallet.  Thais just do not like any form of real competition.

 

 

[Redline]

7 hours ago, z42 said:

In my opinion the exceptionally good pricing, range, and overall value for money associated with Thai hotels is 1 of Thailand's biggest plus points.

It would appear that those charging inflated price don't like the competition and are feeling the pinch of the slowest high season in years.

 

On a side note. Safety wise. Maybe the best solution is to ban balconies altogether, or at least in Pattaya & BKK as the fall rate from them must be 100's of times the global average

Why ban balconies?  Ban the idiots that fall and jump off them, or get too blasted or hang out with the wrong people.  The average person does not fall off a balcony.  Guns aren't even banned!?

[NCC1701A]

cheap rent and cheap hotels. one of Thailand's best attractions for tourists.

 

let's get rid of that. see what happens.

 

[SOUTHERNSTAR]

13 hours ago, Elkski said:

I wont ever pay 4000  baht for a BKK hotel again.,,,   It was barely ok when in a nice beach side place but no way to justify these high costs in Thailand.  no way does it deserve more than 50% of USA prices.

Its a very general statement you are making which is based on you limited experience. There are hotels here that's on equal footing with what's available in the rest of the world. And like in the US there are also dumps here.

[sekmet]

1. How does this cause zero dollar tourism?

 

2. What safety standards?

[roo860]

Why ban balconies?  Ban the idiots that fall and jump off them, or get too blasted or hang out with the wrong people.  The average person does not fall off a balcony.  Guns aren't even banned!?

Just make the guard rail a safe height, if people still want to jump they can climb over it.

Guns are available, banned or not

Sent from my SM-G920F using Thaivisa Connect mobile app

[phoneguy702]

9 hours ago, PaoloR said:

It seems, as usual, that many people are commenting on this topic with no understanding of the situation.

I own and run a hotel and, being foreign owned, have to make sure that all the legal requirements are met.

This includes:

Fire extinguishers, smoke alarms, escape route signage, emergency lighting and many other requirements.

Unlicensed hotels have not had to comply with these regulations and can be death traps. You don't need a fire extinguisher until the fire starts; when you do need it, you want to be sure it actually works! You think you know your way out of a hotel until you can't see for the smoke, no signage and no light can lead to death.

There is no wish to protect a monopoly and dissuade competition  - there is a wish for everyone to play on a level and safe playing field.

A country reliant on tourists for income that does not regulate the buildings they stay in is just asking for a problem. This government is finally doing something, albeit late in the day, to clear up this potentially dangerous situation and all we get on TV is people accusing legal hotels of being over-priced and scared of competition!

I agree that the lack of actual enforcement makes it hard for the hotels, restaurants and other amenities that operate within the regulations.  The general excuse I hear for why many places operate outside of the regulations is that "they can not afford to do..." when there is a great fire or building collapse people feel pity but you can not get them to accept that things need to be done properly.

 

As far as the ones on TV complaining about the price it is totally laughable, whenever I hear some one on TV talking about "value for money" all I hear is Cheep, Cheep, Cheep... 

[impulse]

Gosh, I'm glad everyone thinks Thailand is a magic place where you have every right to expect a dirt cheap hotel room in a property that isn't registered to pay taxes, and still have our hosts pay to haul off trash, build proper sewers, keep the electrical system from killing people, keep the beaches from washing away and build the balconies so drunks can't accidentally fall off.

 

The downside of price wars?  Who pays to keep the resource in decent condition?  The hotel owners can't afford to.  The people they're not paying taxes to can't afford to.

Edited December 25, 2016 by impulse

[Elkski]

its good to get a hotel owners input. However I find it hard to imagine the costs of being legal and labor to clean and run a hotel in Thailand adding up to a cost of a similar USA hotel.  #1 labor is like 1/8th the cost

#2 in USA you get to run AC or heat as much as you want even when not in the room so its comfortable when you come in.  The water from the Shower is drinkable in many countries.    

[AJBangkok]

Everybody's nose is in everybody else's business here so It's hard to believe that local authorities don't know which hotels are illegal in their jurisdictions. It's also hard to believe illegal hotels are left alone to operate freely. Their are probably people  ( not the hoteliers ) out there who profit from the hotels not being legal so any effort to make them legal will probably face an uphill struggle.

[Elkski]

does agoda or trip advisor or priceline mean anything?

[watcharacters]

On 12/25/2016 at 8:03 AM, Elkski said:

I wont ever pay 4000  baht for a BKK hotel again.,,,   It was barely ok when in a nice beach side place but no way to justify these high costs in Thailand.  no way does it deserve more than 50% of USA prices.

 

 

 

How's that again about USA hotel prices?

[JAG]

10 hours ago, Elkski said:

snip..... The water from the Shower is drinkable in many countries.    

 

Personally I don't touch the stuff (water - my brother keeps fish and I've seen what they do in it!), but you don't have to drink it from the shower you know, they sell it by the litre bottle for about ThB14 in most convenience stores!

[madmitch]

It's actually very cheap and simple for small hotels and guesthouses to become legal. It costs around 1000 baht for a licence at the tessabaan. They may do a quick inspection, insist upon fire extinguishers and exit signs and you're done. 

 

But I believe this article is really related to larger hotels that are illegal and that's a problem that really should be resolved. If they comply with the safety standards they will need to make more money to pay for the upgrades. Which way do they choose? Undercut to attract more business or increase prices to get a greater revenue per room? I'd say that's up to the individual hotel to decide.

[Elkski]

14 hours ago, JAG said:

 

Personally I don't touch the stuff (water - my brother keeps fish and I've seen what they do in it!), but you don't have to drink it from the shower you know, they sell it by the litre bottle for about ThB14 in most convenience stores!

I just pointed out about clean water and that it has value to me.  I have a real  moral problem drinking water or beer out of plastic bottles. It's silky this concept has caught on at any price.   Drinkable water is a basic human right.     I have always had potable water in my taps. Until the water out of the tap is potable in Thailand hotels they are only worth 50% of similar quality.    Another way to look at it is that an apartment in USA may be 1200$/mo and nice hotel for 30 days would be 3000 on a daily rate.   Many local thai people pay 10-20 k in rent so 20-40k per month for a hotel is the comparison.  This shows that 3-4 k a night hotels are way overpriced.   By a factor of 2-3 times. IMHO 

I bet the Chinese have driven this high price.     

Edited December 26, 2016 by Elkski