TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

Unlicensed Hotels Featured In C9 Hotelworks Mid-Year Report

Category: Hotels, Posted:19 Jul 2017 | 06:00 am

One of Asia’s most desirable tourist destinations, Phuket is attracting an ever-increasing number of international visitors to its golden beaches and turquoise seas.

But many of the millions of travellers who visit Phuket each year could be staying in unlicensed – and effectively illegal – hotels. According to a new report by hospitality consulting group C9 Hotelworks, less than a quarter of hotels in Phuket (429 out of 1,724) are currently licensed.

Click here to view and download the full report.

This issue was brought into sharp focus late last year when former Phuket’s Governor Chokchai Dejamornthan, announced plans for a crackdown on unlicensed hotels in the island province. At the time, Governor Chokchai urged the travelling public not to stay in unregistered hotels.

But despite a deadline of 31st January 2017 being set for offending hotels to become legally registered, C9 Hotelworks has underscored that, six months later, the situation remains challenged.

Data from Phuket’s Provincial Administration Office shows that of the 1,295 unlicensed hotels identified in Phuket, only six have had their licenses approved. A further 1,001 are pending approval, while 288 have not yet applied.

A disconnect in regulation could be hindering the licensing process.

Phuket’s provincial government has undertaken an admirable large-scale initiative to tackle the proliferation of unlicensed hotels.

Currently the main challenges for the process are the strict regulations associated with the Thailand-wide Building Control and Hotel Act’s. As a result of these mandates, the province is considering reviewing the requirements to support the conversation process.

Local authorities are under pressure to tackle this issue, as strong demand from emerging economies continues to drive a sharp increase in tourism arrivals to Phuket. For example, Russian passenger traffic at Phuket International Airport jumped 17% in the first five months of 2017, while arrivals from Mainland China rose 8%. With 17 Chinese airlines now flying into Phuket, Mainland China accounts for two-thirds of Asian traffic at the island’s airport.

Hotel development in Phuket also continues to gather pace; according to C9 Hotelworks’ pipeline analysis, there are now 33 hotels being developed across the island, which will add 5,738 more rooms to Phuket’s inventory. These include major global brands such as Sheraton, JW Marriott, Best Western, InterContinental, Park Hyatt, Kempinski, Ramada and Rosewood.

With so many new hotels due enter the market in the coming months and years, Phuket’s authorities are mandated to ensure regulatory processes are stringent and effective, whilst the reality is not being overly complex or bureaucratic. At the same time private sector investment into the hotel industry is racing ahead of the public sector.

Without the ability to apply hotel tax to unlicensed properties, the island is being denied much needed revenue that could be reinvested into infrastructure. There remains an imperative to ensure that the 1,295 unlicensed hotels currently operating in Phuket are dealt with swiftly and effectively, to ensure the issue does not do damage to the island’s international reputation.

Many of Southeast Asia’s surging mass tourism resort markets face a similar issue to Phuket. One case in point is Bali where the official registered number of hotels stands at 317, with 33,599 rooms according to the Indonesian government’s Badan Pusat Statistik. In reality inventory stands well above that of Phuket. Government regulating bodies have to understand the close relationship between hotel licensing and tax issues in order to not be left out in the cold.

Other News

Read more

Cambodia Business Briefing – What Comes Next?

Category: Hotels|Real estate|Tourism, Posted:19 Oct 2021 | 08:13 am Hotels, tourism, and real estate are featured in next week’s virtual event – Cambodia Business Briefing. Organized by C9 Hotelworks and Delivering Asia Communications, the session will be on Tuesday 26th October, 3:00 pm Phnom Penh/Bangkok Time | 4:00 pm Singapore/Hong Kong. Cambodia remains one of Asia’s top-up and coming marketplaces. Pre-pandemic, its pace of […]
Read more

PHIST 2021 – Sustainable Asia RE-defined Coming 28 October

Category: Hotels, Posted:11 Oct 2021 | 09:11 am The fourth annual Asian-based sustainability-focused learning event PHIST 2021 will take place in a dynamic virtual setting on 28th October. Organized in Phuket, Thailand with speakers from across the region. PHIST (Phuket Hotels for Islands Sustaining Tourism) has established itself as a leading forum in Asia for sustainable tourism, environmental education for hotels as well […]
Read more

Lonely Planet. Ultimate Vacation Homes. More Phuket Meds

Category: Tourism, Posted:07 Oct 2021 | 21:02 pm It’s Friday and we have a trio of video insights for you. Listen to an intriguing talk with Joe Cummings who is behind the first Lonely Planet Thailand guidebooks. Hear seven short real estate talks on the latest trends. And then, how is Thanyapura looking to expand their medical footprint across Phuket. Right here. Right […]