The Thai Hotels Association (THA) has formally called on the government to amend existing legislation and tighten enforcement mechanisms to address the widespread issue of illegal short-term condominium rentals, particularly by foreign investors.

According to the THA, the practice involves condominium units—often owned by Chinese nationals—being rented out on a daily basis via online platforms at significantly lower prices than licensed hotels.

The association has labeled such units as “zero-dollar condos,” citing their adverse impact on local hotel operators and community residents.

Under Thailand’s Hotel Act of 2004, any establishment offering daily accommodation must obtain a hotel license.

Most condominium properties offering short-term rentals do not meet this requirement.

THA President Thienprasit Chaiyaphatranan explained that current enforcement procedures require officials to pose as customers, obtain a rental receipt, and use it as evidence to make an arrest.

In many instances, only one unit owner is apprehended, despite multiple units within the same building being used for similar illegal rentals.

To strengthen enforcement, the THA has proposed that the law be revised to include provisions allowing authorities to take legal action based solely on evidence of online advertising for short-term condo rentals.

This would remove the necessity for undercover operations and broaden the scope for prosecuting violators.

The association emphasized that stricter legal measures and clearer regulatory guidelines are necessary to protect Thailand’s hospitality industry and uphold fair competition in the accommodation sector.