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Crackdown On Illegal Hotels, Guesthouses

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THA, BMTA to target illegal hotels

By Suchat Sritama

The Nation

Published on October 6, 2010

BANGKOK: -- The Thai Hotels Association (THA) in conjunction with the Bangkok Metropolitan Administration will survey hotels in 24 districts to force illegal operators to comply with the lodging law implemented in 2008.

The association also plans to ask the Interior Ministry to help enforce the hotel law, since many pseudohotels are providing substandard service and security, and hurting the hotel industry's image.

After Bangkok, the campaign will go to Phuket, Samui and Chiang Mai.

Charoen Nudpobsuk, vice president of the THA, said after the group's meeting yesterday that more than 40 per cent of all hotels, with some 100,000 rooms, were operating illegally.

Indirect hotels are guesthouses, residences, serviced apartments, dormitories and accommodations offering daily rentals. Such quasihotels have been stealing guests from registered hotels because they can offer very low rates. Most of them rent rooms through online channels.

According to THA figures, international visitor numbers reached forecasts over the past three years, but the average occupancy rate at its member hotels dropped gradually by 20 per cent per year.

Occupancy at threestar hotels in 2008 was 60 per cent but fell to 50 per cent during the first seven months of this year, while the average at fourstar hotels slipped from 66 per cent to 49 per cent.

Fivestar hotels also experienced a similar drop, from 62 per cent in the last three years to 46 per cent in the first seven months of this year.

"If we look at the visitor numbers, they remained at 14 million arrivals per year. However, hotels saw fewer customers and less income," Charoen said.

In Bangkok alone, only 299 hotels are officially registered, with a total of 58,820 rooms, while 169 are indirect operators with more than 48,000 rooms.

"THA estimates that more than 100,000 rooms across the country are not conforming to the hotel law," he said.

Wrong statistics may cause new investors to make bad decisions, while operators are at risk of losing business if they invest based on incorrect figures.

"The tourism industry has been in error for years because every figure cannot be trusted," he said.

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-- The Nation 2010-10-06

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By all means, let's drive out the cheap hotels and guesthouses so that customers are forced into the more expensive places. Why let rooms be rented for 500 baht per night when 2,000 should be possible? This will certainly increase the profits of the few, thereby benefiting tourism in Thailand, and indeed, throughout SE Asia over the long run.

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BANGKOK: -- The Thai Hotels Association (THA) in conjunction with the Bangkok Metropolitan Administration will survey hotels in 24 districts to force illegal operators to comply with the lodging law implemented in 2008.

The association also plans to ask the Interior Ministry to help enforce the hotel law, since many pseudohotels are providing substandard service and security, and hurting the hotel industry's image.

Maybe some tourists have come to realise that the official hotels only offer the steep price, but not the service. Horrible, can't have that type of competition ;)

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This is crazy. Chances are the Thai Hotel Association directly paid for that 2008 law too. Cunning!! Take out the cheap competition!

Thankfully, as with all "crackdowns" in this country, it will blow over and be all forgotten about in 3 weeks.

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Horrors ... they offer "very low rates", and sell over the internet, and thus steal guests from registered hotels. Are there no depths, to which these people will stoop, in their efforts to meet the paying-customers' needs ? B)

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Why all the negative comments? Aren't you also the same people that scream about the lack of safety standards? Hello??? Earth to vapid heads.

The registered and licensed hotels have most likely invested in following some form of fire and life safety code. If it's a major brand, alot of money was spent on the installation of function smoke & heat detectors, fire alarms and function firehoses. Do you think any of the illegal operators care anything about keeping fire exits unlocked or a smoke detector? If you want the staff to wash their hands after taking a crap then you need to provide soap in the staff bathrooms. Do you think that the illegal hotels do that? They do at Sheraton, Centera etc. The illegal hotels are not paying taxes and are taking advantage of municipal services whereas the licensed establishments are paying an inflated rate which is subsidizing the illegal operators.

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Horrors ... they offer "very low rates", and sell over the internet, and thus steal guests from registered hotels. Are there no depths, to which these people will stoop, in their efforts to meet the paying-customers' needs ? B)

Right On! You took the words right out of my mouth.

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Dropping occupancy levels..... wouldn't have anything to do with a global recession or coming close to a civil war would it?

Oh no, its the people who offer tourists what they want.

IF they did properly enforce this, which is unlikely, it wouldn't increase occupancy in the licensed places, just drop tourism levels lower than they already are.

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By all means, let's drive out the cheap hotels and guesthouses so that customers are forced into the more expensive places. Why let rooms be rented for 500 baht per night when 2,000 should be possible? This will certainly increase the profits of the few, thereby benefiting tourism in Thailand, and indeed, throughout SE Asia over the long run.

Yes, indeed! Who cares if these illegal hotels are not regulated and don't conform to health and safety standards. Cheap is far better than safety.

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Remember the changing demographics of tourists coming to Thailand: Fewer Euro/Americans & more Chinese/Arab/Indians & Russians. Generally speaking, the new tourists are going to spend less money. They are less likely to stay at a 4 or 5 star hotel & will usually go to cheaper restaurants and guesthouses.

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So this isn't a thread about a Thai hotel association using officials to chase away non-members or guesthouses operating illegally? Isn't there already a well worn thread about racism?

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Again I risk being belittled by any writing here but i am asking for a long time about this situation at my condo and every reply was they can

rent short time if they want to here by people who wrote in

now for once I see that there is a light at the end of the tunnel to stop this abuse of my home,

yes that is right, people who don't live or own, renting their rooms by the day to people who do not care

about the property is an abuse of the common areas and makes life worst than it would be if

people lived in this condo who owned it and kept it safe, clean and habitable.

The Farangs that have been renting are usually here for the day to use the facilities and make a mess

and no one seems to give a S__t/

Does anyone know how I can reach this Agency to let them know and see if they can stop it?

Yes I can google it, yes i can look in the yellow pages,

you smart A's who respond to these emails belittling people for questions and responses make life harder

to be involved in this forum, but maybe if it doesn't kill us it makes us stronger to

deal with what crap comes this way eh?

cheers

By all means, let's drive out the cheap hotels and guesthouses so that customers are forced into the more expensive places. Why let rooms be rented for 500 baht per night when 2,000 should be possible? This will certainly increase the profits of the few, thereby benefiting tourism in Thailand, and indeed, throughout SE Asia over the long run.

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And here I always thought Nasa was a crummy short-time hotel situated in a slummy district. Apparently it's a luxury hotel used by business travelers. :blink:

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It's laughable... - They trust the arrivals figures from the government, and so when they see lower occupancy, they assume the problem is fake hotels taking their guests.

Isn't the issue more likely to be that the arrivals figures are rather artificial. Anyone landing at the airport in the last few months knows that the queues are shorter...

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funny how you lot can turn this forum into something it is not

just goes to show what guppy brains you have and how easily side tracked you are

Pattaya didnt seem to be on the list

I can say that if you are a condo owner and the THais control the committee then they will allow the renting of rooms in the building. Even though they dont adhere to the Condo Act, the Hotel Act, or any other act.

There are problems with insurance to as if theres a problem and a claim needs to be made and the building was being used as a hotel then your claims are null and void

If you own a condo then it is up to you to write to the appropriate people to alert them to the fact that your condo is not complying with the Acts

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