Tourism booms, Thailand gets hotel act together

The sector is expected to add Bt800 billion to Thailand's coffers.

With the sector growing, construction of hotels and resorts has seen a boom.

This has provided higher employment opportunities, boosted infrastructure development and benefited associated industries such as banking, finance and manufacturing.

In Thailand, small hotels and guest accommodations have seen higher growth. Small hotels provide personalised service and are often eco-friendly. Sometimes a family opens its house to paying guests, providing them a unique cultural experience and in turn, earning extra income. However, small hotels have encountered problems while applying for a licence due to the criteria set down by the Building Control Act BE 2522.

The importance of the hotel industry on the Thai economy has motivated the government to amend the Hotel Act BE 2478.

On May 23, the Interior Ministry issued the much anticipated Ministerial Regulation clarifying the provisions of the Hotel Act. The key features are:

n The definition of a hotel will exclude residential premises for rent with no more than four rooms whether in a single building or severalbuildings and serving 20 guests. The owners of such premises will have to report to the Hotel Registrar but their building will not be categorised as a hotel.

n Hotels have been classified into four types depending on the number and area of rooms, and the facilities provided. Owners of lodgings that have four rooms or less will not be required to apply for a licence. The lodgings will compete with serviced apartments, guesthouses, resorts and small hotels with licences. However, medium-sized hotels may continue to face problems in applying for licences.

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