The Thai Hotels Association (THA) approves of the Ministry of Interior's new regulations that will allow smaller accommodation operated prior to 2016 to be regulated as hotels, as the government would be able to receive more income from tax collection.
However, the association still opposes the plan to exempt larger forms of accommodation from registering under the Hotel Act.
Udom Srimahachota, vice-president of THA's western chapter, said adding the new registered hotels would boost fair competition for 2- to 3-star hotels which are on the same tier as the smaller accommodation, particularly in terms of tax payment.
On June 20, the Interior Ministry announced that the ministerial regulations which allowed other types of buildings that did not fit under the definition of "hotel" in accordance with the Hotel Act, but had opened before Aug 19, 2016, would be able to register for hotel licences.
Under this regulation, they are not required to adjust structural components, such as mandatory empty spaces, the size of corridors and staircases, but their buildings must have strong foundations and fire safety measures in place.
Further requirements are evidence of property and land tax payments and website advertisements to guarantee that their accommodation has been in operation since before Aug 19, 2016.
Before this latest regulation was enacted, the Interior Ministry consistently relaxed the rules to let small operators register as hotels.
However, due to constraints pertaining to existing building structures which could not be changed or adapted, many of them were unable to register under the Hotel Act.
Mr Udom said a question regarding unfair treatment might arise from some operators who had already invested in adjusting their properties to fit the previous rule, such as reducing the number of rooms to free up more space.
In such cases, the government should help ease those incurred costs as well, such as by reducing tax payments or providing another form of subsidy, he said.
Mr Udom said the government's plan to exempt properties with no more than eight rooms hosting fewer than 30 guests from the Hotel Act was unacceptable.
Under the current laws, exemption has been made for properties of no more than four rooms with fewer than 20 guests.
Mr Udom said lifting this threshold would amplify unfair competition in this industry and, more importantly, could be a safety risk for guests who choose this type of property.
He said that in the Cha-am and Hua Hin areas, there were many pool villas that exploit this loophole and receive exemption from the Hotel Act.
Some reportedly disturbed neighbours and were used for unlawful gatherings as they were not required to submit guest information to the authority, as required from registered hotels.
The latest relaxation from the new ministerial regulation announced last week is sufficient, said Mr Udom.
