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Phuket Hotel Owners Driving Without Licenses

Category: Hotels. Posted: 7th Oct 2010

In somewhat taxing times, pardon the pun the Provincial Government have targeted hotel owners who are currently evading payments. According to figures reported of 702 hotels only 273 are licensed on the island.

Along with obvious tax concerns other issues citied include the lack of appropriate building permits and environmental approvals which are needed in order to obtain a formal hotel license.

One consequence of the lack of licenses has come up in a number of intended hotel transactions where sales have not pushed though once due diligence started and it was found that the seller lacked the required documentation.

Another short term ill of the existing hotel license regime in the lack of formal guidelines for non- traditional accommodation including condo hotels and private pool villa developments which operate and are sold as hotels.

Many owners have expressed willingness to get a license and pay tax but there is simply no allowance for these products in the current Thai Hotel Act.

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