OTAs told to drop illegal hotels

BANGKOK, 24 March 2017: The Thai government intends to work closely with the private sector to sift out illegal hotel operators that sell rooms through the online room bookings space.

Deputy Prime Minister General Tanasak Patimapragorn chaired a meeting of the National Policy Committee for Tourism, earlier this week to discuss the subject within the framework of tourism management and community tourism promotions, according to the National News Bureau.

Gen Tanasak noted at the meeting that tourist arrivals had surpassed 6 million and generating more than THB300 million in revenue.

However, there are concerns that illegal hotel operators are disrupting the market and taking legitimate earnings from registered hotels that pay tax.

Minister of  Tourism and Sports, Kobkarn Wattanavrangkul, revealed that her ministry had already discussed the matter with representatives of the popular online booking site Agoda.com to explore ways to block illegal lodging operators from using online booking systems. Agoda, which has its operational headquarters in Thailand, said it needed more time to ponder the issue.

The Ministry of Tourism and Sports also plans to call a meeting with related agencies, including the Ministry of Interior and the private sector to discuss the matter in April.

Thailand Hotels Associations has been lobbying governments for more than a decade to address the issue of illegal hotel operators. It has called for new legislation and protection for registered hotels that are disadvantaged. They pay tax, licence fees and other charges, but face tough competition from non-registered hotels that undercut rates.

Competition is likely to increase from Airbnb, which is now competing in Thailand in the short-term home rentals.

There is a strong opinion that Airbnb’s short-term rentals could be declared illegal. It is also faces criticism that Airbnb home owners are not obliged to report their guest list to the police as is the case with hotels and registered guest houses. This reporting mechanism is now seen as an important tool to fight international terrorism.

(Source: NNT)

2 COMMENTS

  1. 1. MoTS must disclose all the illegal hotels to the public and all websites that refuse to support the campaign clean up the hotel and accommodation industry.

    2. MoTS must cooperate with all the government organizations that control the business of accommodation to issue the laws and regulations to cope with all forms of accommodation and the new form of accommodation such as Airbnb and others with the same business model.

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