TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

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

Unlicensed Phuket Hotels Face Two Month Ultimatum

Category: Hotels, Posted:03 Dec 2016 | 06:36 am

Phuket Governor Chokchai Dejamornthan has issued an ultimatum to illegal hotels to either register before January 31st , 2017, or face legal action.

According to the Phuket Gazette, the crackdown was announced in a public meetings with government officials and the press on Thursday.

The Phuket Provincial office has said there are currently 424 registered hotels currently under operation, and an estimated number exceeding 1,300 are running without a license.

Looking closer at the issue, the main targets of the crackdown are residential properties such as condominiums who are selling overnight accommodation to tourists.

What is unclear in the registration process is how the government will connect the registration process to that of national legislation under the Hotel Act, in order that illegal properties are able to retroactively obtain hotel licenses.

This remains a significant issue, given the disconnect between building regulations and requirements that vary between hotels and residential properties.

For now though increasing pressure is coming both from the hotel sector and also the Thai Revenue Department along with the knock-on pressure from local taxation.

Bloomberg has reported that Airbnb has now changed their policy on setting automatic limitations on the number of nights hosts can rent out properties. This is a direct response to added pressure by cities and government action.

Under the new guidelines in London hosts will now need a license for annual rentals exceeding 90-days, while in Amsterdam a 60-day threshold is being put into place.

Looking at the issue in Phuket, there are two taxes applied to hotel accommodation. One is a national government tax, while a second local tax is applied across Phuket Province. This falls under the  Phuket Provincial Administration Organization and varies depending on the relative Or Bor Jor.

For now, the issue of illegal hotels looks to be under increasing scrutiny, not only here in Thailand but across the globe. Though hotel licensing issues remain at odds for residential properties, what’s clear is the government is following the money trail.

Other News

Read more

Phuket Airlift To Koh Samui Is Back

Category: Tourism, Posted:23 Oct 2020 | 16:26 pm Bangkok Airways has announced the return of flights between Phuket and Koh Samui. According to the Phuket News service commences Sunday, October 25th leaving Phuket at 12:20 pm and arriving in Samui at 1:15 pm. There will also be a resumption of flights between Phuket and Hat Yai between Phuket and U-Tapao (Pattaya). The return […]
Read more

Khao Lak Hotel Supply Continues To Expand

Category: Hotels, Posted:22 Oct 2020 | 06:00 am Despite the downturn of Covid-19, hotel investment confidence in Khao Lak remains positive in the long term. One sign of this is a newbuild Pullman-branded Khao Lak Resort Is set to open on 1st December. The 253-key beachfront hotel and villa property features a design by Martin Palleros of Tierra Design.  Palleros is the architect […]
Read more

Minor’s Bill Heinecke Speaks Out About Chinese Return

Category: Hotels, Posted:21 Oct 2020 | 11:40 am We had a candid conversation a few days ago with Minor International’s Founder and Chairman Bill Heinecke about Thai tourism. Two key takeaways from the conversation were: The Asian financial crisis of 1997 was a walk in the park compared to the damage to the Thai economy during Covid-19. Thailand must find a way to […]