Nearly 4,900 smaller hotels operating illegally, new study finds
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ALMOST 4,900 hotels in seven major tourist destinations are reportedly operating illegally by being unregistered, which could lead to concerns over quality and standards in the entire industry, according to the author of a new hospitality-sector study.
The study was conducted by SurapongTecharuvichit, president of the Thai Hotels Association, for his graduation at the National Defence College.
The researcher compiled data about hotels in Bangkok, Phuket, Pattaya, Chiang Mai, Surat Thani, Hua Hin and Cha-am that make their rooms available for sale through www.agoda.com.
Surapong found that 4,876 unregistered hotels with a total of 168,929 rooms were operating on the Agoda bookings website.
However, another 772 hotels with 128,176 rooms are properly registered and operating through the same site.
According to Surapong, 2,299 hotels in the cities in his study have obtained approval from the authorities. They have a combined 203,424 rooms.
“Many hotels are operating illegally, maybe due to their inability to get a licence because of tough conditions, or maybe they just prefer not to be registered,” he said.
Registered hotels usually have higher operating costs, so many operators choose not to register in order to avoid being subject to hotel law, he explained.
As a result, average room rates at hotels in Thailand are lower than in other countries in the region, as well as cheaper than hotels in East Asia and Australia, he added. Moreover, hotels operating illegally could spread concern over standards and service, as well as over overall quality and safety, he warned.
In his study, Surapong suggests the authorities should solve the problem by enforcing the hotel investment law by controlling investment and operations, imposing the same tax rate on registered and unregistered properties, and introducing measures whereby visitors are asked to use only registered hotels.
Last week, the Cabinet approved a revised draft ministerial regulation to the effect that smaller hotels, categorised as types A and B, must receive proper registration.
