Hotel Act considerations addressed by Thai Hotels Association due to government’s registration guidelines

The Thai Hotels Association (THA) has taken a optimistic step by welcoming the Ministry of Interior’s new rules. These rules will now classify smaller lodging that have been operating earlier than 2016 as resorts. This decision is anticipated to lead to increased tax assortment, providing further revenue for the government.
However, the proposal to exempt bigger accommodation amenities from registration beneath the Hotel Act has met with resistance from the affiliation. Expressing the association’s stand, Udom Srimahachota, the vice president of THA’s western chapter, claimed that registration of recent motels would enhance competitiveness, notably in tax matters, amongst two and three-star hotels and smaller lodging units.
Components happened on June 20 when the Interior Ministry introduced that other forms of establishments, not adhering to the “hotel” definition as per the Hotel Act but useful before nineteenth August 2016, may now apply for resort licenses. Under this association, these institutions are not compelled to alter structural attributes such as compulsory vacant spaces, hall sizes and staircases. However, they have to demonstrate strong building foundations and hearth safety conventions.
Additional prerequisites embrace proof of property tax payments and land and web-based commercials to guarantee that their operations have been ongoing since before August 19, 2016.
Under the earlier rules, smaller operations struggled to register as motels, because of the structural limitations of current buildings. Now with the much less stringent legal guidelines enacted by the Interior Ministry, the trail to registration underneath the Hotel Act has been facilitated, making it a fair ground for all.
Yet Udom highlighted potential issues of the unfair remedy of those that invested in property changes, corresponding to room reduction for extra house, becoming the prior laws. In such conditions, the federal government ought to consider financial easement, maybe in the type of tax reductions or alternative types of subsidy, Udom argued.
However, he contested the government’s plan to exempt institutions with lower than eight rooms and accommodating fewer than 30 friends from the Hotel Act. If extended, Udom warned, the prevailing threshold could not solely lead to elevated unfair competition in the trade but in addition pose safety hazards for friends choosing such properties, reported Bangkok Post.
Focussing on business malpractices, he added that many pool villas in the Cha-am and Hua Hin areas exploit authorized loopholes to attain exemption from the Hotel Act. Some reports suggest these properties haven’t only disrupted close by residents but have also been used for illegal gatherings because they escape the necessary requirement of submitting particulars of friends, a requirement for registered motels..

Leave a Comment