The Thai Hotels Association (THA) has raised the alarm for property owners over a new draft law for hotels, warning it could infringe on the rights of residents and compromise tourist safety, which is already a blemish for Thailand.
The draft of the Hotel and Overnight Accommodation Act, proposed by MP Nataphol Tovichakchaikul, was submitted to the THA this month for comment. The association expressed disagreement on key issues, said Thienprasit Chaiyapatranun, president of the THA.
This draft law is intended to replace the Hotel Act of 2004, if approved by the House of Representatives.
DEFINITIONS MATTER
Mr Thienprasit said the most critical concern was the definition of "overnight accommodation", which refers to a property with no more than 29 rooms accommodating no more than 58 people.
He said the number of rooms is a significant change from the current Hotel Act, which limits operations to no more than eight rooms for 30 guests.
"If this draft law is enacted, investors who purchased multiple units in a condo or housing estate could legally operate them as hotel rooms, simply by securing a majority vote at the owners' annual general meeting [AGM] to approve hotel operations on those properties," said Mr Thienprasit.
He said no residents would be aware of such an arrangement at the time of purchasing homes, while some guests might not realise that their accommodation was illegally operated.
These residents should have their rights protected, said Mr Thienprasit.
THA also disagrees with defining a "room" as a standalone unit of an overnight accommodation, as written in this draft.
Registration should apply to whole buildings to prevent community disruption and to ensure guest safety, as most people will not know the conditions of buildings hosting such rooms, he said.
Surapong Techaruvichit, managing director of Asia Hotel Plc and a former THA president, said this draft law creates risks for buyers of condos or houses who intend to live in them.
According to this draft, condo units and houses can easily be converted to function as hotels if they obtain permission from the juristic persons prior to applying for licences, he said.
"Most residents are inactive voters who do not attend AGMs," said Mr Surapong.
"Investors could easily pass resolutions at such meetings to convert units to accommodate daily guests."
Tourists disturbing condo and housing estate residents has been a persistent problem in tourist destinations, particularly in Bangkok and Phuket, where foreign owners used booking platforms to target guests of the same nationality, he said.
HIDDEN AGENDA
Pornnarit Chuanchaisit, president of the Thai Real Estate Association, said some developers target foreign buyers.
However, if a property developer publicly announces from the launch period that its buildings or housing estates will allow overnight guests rotating daily, this will definitely have an impact on their sales, which he said they would not want to risk.
Buyers with real demand, meaning they want to live in the units they purchase, remain the key target for developers, said Mr Pornnarit. These buyers would not feel comfortable sharing spaces with strangers, he said.
"In Thailand, we always encounter this kind of problem. Laws should be clearly written, but in most cases we leave loopholes unaddressed and rely on enforcement measures, like crackdowns, to solve the problem later," said Mr Pornnarit.
"People who break the rules believe they can simply pay a fine or even a bribe and have their rooms or houses reopened within a few days."
There are many petitions from luxury housing estate residents saying they felt unsafe when their children have to share common areas with strangers, especially those who misbehave, he said.
"Throwing parties all night at private pools, running topless around the community, lighting fireworks, and even stalking female residents to their rooms are real incidents that have occurred regularly, causing discomfort in communities," said Mr Pornnarit.
Rooms were booked in these estates through foreign platforms, which means Thailand earns very little, he said.
Allowing this practice is unfair to responsible owners who pay common area maintenance fees, as they pay to repair deteriorating buildings and facilities, while daily guests do not pay these fees nor have a sense of ownership of the residences, according to Mr Pornnarit.
CONVENIENT ESCAPE
More importantly, the new law could create a loophole for owners seeking to avoid conducting environmental impact assessments, which are required for buildings with more than 79 rooms, he said.
"Previously owners might have applied for separate licences for every eight rooms to comply with the law, using different nominees for each licence," said Mr Pornnarit.
"Increasing the limit to 29 rooms makes it easier for owners to double or triple the number of rooms up to nearly 100, equivalent to the size of a full-scale hotel."
Mr Thienprasit said THA is not opposed to the idea of separating hotels and overnight accommodation, but the latter should be limited to a maximum of eight rooms and 30 guests.
The association also supports the idea of regulating buildings that are not classified as hotels or overnight accommodation to ensure tourist safety.
The THA believes there are no issues with the current Hotel Act, only with enforcement, he said.
In many provinces, some accommodation is unable to register as a hotel despite a relaxing of regulations over the past decade, due to rules related to environmental zoning.
Supawan Tanomkieatipume, vice-chairman of the high-quality tourism committee at the Thai Chamber of Commerce, said the mandatory safety measures for hotels are quite different from other property types.
Hotel operators are required to renew their licences every five years to maintain safety standards, unlike accommodation with up to eight rooms, which is exempt from such rules.
"Thailand has been struggling with a negative perception regarding safety. There have been several previous attempts to lower the standards of the hotel industry, and this draft also falls into that category," said Ms Supawan.
"We are concerned if incidents affecting tourist safety occur, the country may not be able to address the root cause retroactively."
