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Monday, May 6, 2024

Thai hotel industry fears revenue and tax loss over reclassifying small properties

Photo by Norbert Braun on Unsplash.

The Thai Hotels Association (THA) voiced concerns over recent ministerial regulations that exclude accommodations with fewer than eight rooms and 30 guests from being classified as hotels. The THA predicts this new rule will result in a 15-20% decrease in hotel tourism revenue, heightened safety risks, and loss of tax revenue.

This regulation, announced in the Royal Gazette, has been criticised by Udom Srimahachota, Vice-President of THA’s western chapter, for being more detrimental than advantageous for the overall industry. The revision updated the non-hotel definition from establishments with four rooms, accommodating no more than 20 guests, to those with up to eight rooms housing a maximum of 30 guests.

The Tourism Council of Thailand supports the regulation, believing it would stimulate local homestays offering unique services. However,…

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