Concerns Emerge Over Draft Hotel and Overnight Accommodation Act in Thailand
New legislation may impact residential rights and tourist safety, prompting calls for public comment from property owners.
The Thai Hotels Association (THA) has raised significant concerns regarding the draft Hotel and Overnight Accommodation Act, which property owners are urged to comment on as it stands to impact residents in condominiums and housing estates.
The draft law, submitted this month by MP Nataphol Tovichakchaikul, aims to replace the existing Hotel Act of 2004, pending approval from the House of Representatives.
A primary concern highlighted by Thienprasit Chaiyapatranun, president of the THA, is the definition of 'overnight accommodation.' This definition proposes that properties with up to 29 rooms accommodating no more than 58 people should be classified as such, altering the previous limitation of eight rooms for no more than 30 guests.
Should this draft law be enacted, it could allow investors who purchase multiple units in a condo or housing estate to operate them legally as hotel rooms, contingent upon a majority vote at the property owners' annual general meeting (AGM) to approve such operations.
Mr. Thienprasit emphasized that many residents may be unaware of their homes being converted to hotel operations and cautioned that guests might unknowingly stay in properties operating outside existing regulations, thus compromising their rights.
The THA also opposes the draft's definition of a 'room' as a standalone unit of accommodation.
They argue that registration should encompass entire buildings to prevent potential disruptions in communities and ensure tourist safety, as many residents may lack knowledge of the safety conditions of such properties.
Surapong Techaruvichit, managing director of Asia Hotel Plc and past THA president, voiced further concerns regarding the implications of the legislation, highlighting that condo units and houses could be easily adapted to function as hotels if owners receive the necessary permissions, potentially impacting long-term residents.
Reported issues of disturbances from tourists within residential areas, particularly in high-density tourist locales like Bangkok and Phuket, have added to the concerns.
Surapong detailed how foreign property owners often utilize booking platforms to attract daily guests, undermining the quality of life for permanent residents.
Pornnarit Chuanchaisit, president of the Thai Real Estate Association, noted the awareness among developers to avoid jeopardizing sales by publicly declaring properties as suitable for daily guest stays.
He stated that genuine homebuyers, seeking to inhabit their purchases, are sensitive to sharing spaces with transient visitors.
Concerns about residents' security have been exacerbated by complaints from luxury housing estate residents about sharing common spaces with unfamiliar guests, with reported incidents of disruptive behaviors such as loud parties and potential safety threats.
Furthermore, the draft law could unintentionally create loopholes for owners to evade mandatory environmental impact assessments that are required for larger accommodation facilities.
This relaxation of operational thresholds could allow property owners to bypass comprehensive regulatory scrutiny under the guise of operating smaller establishments.
The THA has indicated that they are not fundamentally opposed to the creation of a distinction between hotels and overnight accommodations, proposing that the latter should be limited to a maximum of eight rooms catering to 30 guests.
Additionally, they advocate for regulations applicable to non-hotel buildings to enhance safety standards for tourists.
Supawan Tanomkieatipume, vice-chairman of the high-quality tourism committee at the Thai Chamber of Commerce, pointed out that current safety regulations for hotels differ significantly from those governing smaller properties.
Hotel operators must renew their operating licenses every five years, ensuring they meet safety standards, while those operating under the new proposal may not be subject to such stringent requirements.
These discrepancies have raised concerns amidst ongoing challenges in the tourism sector related to perceptions of safety, as the country strives to improve its image while also addressing the complexities involved in enforcing regulations for various types of accommodation.
The draft law, submitted this month by MP Nataphol Tovichakchaikul, aims to replace the existing Hotel Act of 2004, pending approval from the House of Representatives.
A primary concern highlighted by Thienprasit Chaiyapatranun, president of the THA, is the definition of 'overnight accommodation.' This definition proposes that properties with up to 29 rooms accommodating no more than 58 people should be classified as such, altering the previous limitation of eight rooms for no more than 30 guests.
Should this draft law be enacted, it could allow investors who purchase multiple units in a condo or housing estate to operate them legally as hotel rooms, contingent upon a majority vote at the property owners' annual general meeting (AGM) to approve such operations.
Mr. Thienprasit emphasized that many residents may be unaware of their homes being converted to hotel operations and cautioned that guests might unknowingly stay in properties operating outside existing regulations, thus compromising their rights.
The THA also opposes the draft's definition of a 'room' as a standalone unit of accommodation.
They argue that registration should encompass entire buildings to prevent potential disruptions in communities and ensure tourist safety, as many residents may lack knowledge of the safety conditions of such properties.
Surapong Techaruvichit, managing director of Asia Hotel Plc and past THA president, voiced further concerns regarding the implications of the legislation, highlighting that condo units and houses could be easily adapted to function as hotels if owners receive the necessary permissions, potentially impacting long-term residents.
Reported issues of disturbances from tourists within residential areas, particularly in high-density tourist locales like Bangkok and Phuket, have added to the concerns.
Surapong detailed how foreign property owners often utilize booking platforms to attract daily guests, undermining the quality of life for permanent residents.
Pornnarit Chuanchaisit, president of the Thai Real Estate Association, noted the awareness among developers to avoid jeopardizing sales by publicly declaring properties as suitable for daily guest stays.
He stated that genuine homebuyers, seeking to inhabit their purchases, are sensitive to sharing spaces with transient visitors.
Concerns about residents' security have been exacerbated by complaints from luxury housing estate residents about sharing common spaces with unfamiliar guests, with reported incidents of disruptive behaviors such as loud parties and potential safety threats.
Furthermore, the draft law could unintentionally create loopholes for owners to evade mandatory environmental impact assessments that are required for larger accommodation facilities.
This relaxation of operational thresholds could allow property owners to bypass comprehensive regulatory scrutiny under the guise of operating smaller establishments.
The THA has indicated that they are not fundamentally opposed to the creation of a distinction between hotels and overnight accommodations, proposing that the latter should be limited to a maximum of eight rooms catering to 30 guests.
Additionally, they advocate for regulations applicable to non-hotel buildings to enhance safety standards for tourists.
Supawan Tanomkieatipume, vice-chairman of the high-quality tourism committee at the Thai Chamber of Commerce, pointed out that current safety regulations for hotels differ significantly from those governing smaller properties.
Hotel operators must renew their operating licenses every five years, ensuring they meet safety standards, while those operating under the new proposal may not be subject to such stringent requirements.
These discrepancies have raised concerns amidst ongoing challenges in the tourism sector related to perceptions of safety, as the country strives to improve its image while also addressing the complexities involved in enforcing regulations for various types of accommodation.
