Thai Government Overhauls Hotel Law to Regulate Modern Tourism
New legislation will redefine 'hotels' and legalise popular lodging types like homestays, hostels and digital platforms, aiming to boost the grassroots economy
- The Thai government is replacing the outdated 1994 Hotel Act with a new Accommodation Act to better regulate the country's modern and evolving tourism industry.
- The new law will expand the legal definition of "accommodation" to include modern lodging types like homestays, hostels, and treehouses, and will introduce flexible, tailored regulations for smaller businesses.
- A major reform includes the regulation of digital booking platforms like Airbnb and Agoda, alongside the introduction of electronic systems for licensing and guest registration to streamline operations.
The Thai government is set to overhaul its hotel regulations, with the Council of State currently drafting a new Accommodation Act to replace the outdated Hotel Act of 1994.
The move aims to bring the law in line with the country's rapidly evolving tourism industry.
According to a report from the Government House, the 1994 law is no longer suited to modern travel, which has expanded beyond traditional mass tourism.
Today’s tourists are increasingly interested in niche experiences such as luxury tourism, medical and wellness tourism, and solo travel.
There is also a greater focus on responsible tourism, which considers a trip’s environmental, cultural, and community impact.
The new legislation seeks to create a more efficient framework to support all types of accommodation providers, from large hotels to new business models like small-scale hostels, sharing economy services, and local homestays.
Key Reforms and Provisions
The draft law introduces several key changes:
Redefining Accommodation: The current law's narrow definition of a "hotel" means that many modern lodging types, such as homestays, tents, and treehouses, cannot legally operate. This has left many small-scale operators, who are vital to the grassroots economy, in a legal grey area. The new draft will provide clear definitions for both 'hotel' and 'accommodation' to cover all types of lodging.
Tailored Regulations: To avoid a "one-size-fits-all" approach, the new law will be more flexible and fair, particularly for small businesses. Low-risk ventures will be able to use a simple "notification" or "registration" system instead of a complex licensing process. The law will also adjust regulatory standards so that smaller accommodations are not required to meet the same strict criteria as large hotels.
Facilitating Business: The government is introducing measures to streamline operations, including an electronic system for guest registration and license applications. A new "Super Licence" will be created, allowing a single licence to cover multiple activities and reducing the administrative burden on business owners.
Digital Platform Regulation: In a major move, the new act will introduce measures to regulate digital platforms like Airbnb, Agoda, and Booking.com. This is intended to protect consumers, ensure fair competition between small and large businesses, and encourage previously unregulated accommodations to join the formal system.
Promoting the Industry: The new law will establish a "Committee for the Promotion of Accommodation Business" to set overall industry guidelines. The Ministry of Tourism and Sports will be the lead agency, tasked with creating policies that support the sector.
Fairer Penalties: The draft follows a "motivate rather than force" approach to enforcement, aiming to encourage compliance rather than simply punishing non-adherence. Penalties will be revised to be fairer and more appropriate to the severity of the offence, reducing the reliance on criminal charges.
