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Foreign Frenzy: The Illegal Hotel Crisis Looming in Thailand!

Doggy
374 日前

ThailandHotel Cris...Regulatory...

Overview

Foreign Frenzy: The Illegal Hotel Crisis Looming in Thailand!

Proposed Changes and Rising Concerns

In Thailand, the proposed changes to foreign ownership regulations are causing significant alarm among local hotel operators. A government-backed real estate stimulus plan seeks to extend the leasehold period for foreigners to an extensive 99 years and raise the cap on foreign ownership of condominiums from 49% to 75%. While intended to boost foreign investment, these measures may inadvertently pave the way for an influx of illegal hotels. Local businesses worry that more foreign ownership will lead to the conversion of condo units into unregulated short-term rentals, eroding the competitive landscape for licensed hotels that abide by local laws and regulations.

Severe Impact on Established Hotels

The implications of loosening regulations for foreign buyers are profound, particularly for the current hospitality industry landscape. There are approximately 15,000 illegal hotels operating in tandem with around 16,000 registered hotels in Thailand. This alarming statistic highlights the ongoing crisis that legal operators face. For instance, the potential of foreign investors purchasing entire floors of condominiums exclusively for rental to their compatriots creates an uneven playing field. Udom Srimahachota from the Thai Hotels Association warns that this practice undermines Thai hotels, which incur higher operational costs, such as land and corporate taxes, while competing against unlicensed accommodations that thrive without the same financial burdens.

A Call to Action for the Government

In light of these rising challenges, the Thai Hotels Association is urgently urging the government to take proactive steps to protect the domestic hospitality sector. They are advocating for enhanced access to financial resources for small and medium-sized hotel operators, many of whom struggle to secure loans for renovations and improvements. Furthermore, stricter regulations are needed to monitor and manage unlicensed short-term rentals, which frequently exploit regulatory gaps. As Thailand's major tourist cities like Bangkok and Chiang Mai continue to draw international visitors, it becomes increasingly critical for policymakers to implement measures that ensure a level playing field for all operators. Addressing these issues will not only protect local businesses but also sustain Thailand's reputation as a premier travel destination.


References

  • https://www.bangkokpost.com/propert...
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