Govt to crack down on unlicensed hotels

Once the new rules take effect, the ministry will allow three months for illegal hotel operators to comply by improving their standards so they qualify for licences. Those failing to meet the deadline will face fines of Bt500,000 or prison, or both.
The aim is to eliminate unre-gulated hotel operators and |create fair competition in the market.
The ministry estimates that of the more than 12,000 hotels nationwide, 7,500 are illegal. They are mainly guest houses, serviced apartments, and house rentals in major tourist destinations.
Surapong Techa-ruvichit, president of the Thai Hotels Association, said the regulations would help improve the standards of the hospitality industry. More important, they will reduce the supply of rooms nationwide and drive up room rates. Illegal hotels have hurt the licensed operators by luring a large number of tourists with low prices.
He noted that lawful hotels bear higher operating costs than their illegal peers. Those offering premium service have to employ a large number of people, while legal hotels in all categories pay room taxes annually and licence fees every five years.
Surapong said the licensing crackdown was part of a national tourism plan discussed recently aimed at improving the industry with a view to taking in Bt2 trillion in tourism revenue in 2015.
Previously, Surapong said room rates in Bangkok were quite low compared with other major cities in Asia. Early this year, the average rate was US$97 (Bt2,970), representing only 40 per cent of the real cost. Meanwhile, the average rate in Singapore was $232, Hong Kong $242, Tokyo $164, and Seoul $149.