Thai hotels sector urges action against unregulated daily rentals

With concerns over unfair competition and security risks, the hotel sector is seeking stricter laws, mandatory registration and enforcement of regulations

 

Thailand’s hotel industry is calling on the government to take decisive action against the proliferation of so-called “zero-dollar condos” and unregulated daily room rentals via platforms like Airbnb. 

 

The Thai Hotels Association (THA) is also urging mandatory registration and stricter enforcement of existing laws, citing unfair competition and security concerns.

 

The issue is primarily related to condominium owners, often Chinese nationals, who purchase several units and list them on online platforms for short-term rentals at significantly lower prices than hotels can offer. 

 

This practice, commonly referred to as “zero-dollar condos”, is causing distress among local residents and is considered illegal under Thai law. 

 

The Hotel Act of 2004 mandates that daily accommodation services must be licensed as hotels, a condition most condominiums do not meet. 

 

Thienprasit Chaiyaphatranan, president of THA, voiced strong concerns, stating that such practices undermine the integrity of the legal framework. 

 

“Not only condominiums, but also units within juristic condominium buildings and housing estates are prohibited from offering daily rentals,” he told Thansettakij. He further argued that online platforms facilitating these rentals should either face temporary closure or be subject to mandatory registration. 
  



 

The THA highlighted the negative impact on the hotel industry, which is losing market share to these unregulated rentals.

 

Additionally, these rentals often fail to comply with the law requiring the reporting of foreign tourists to the Immigration Bureau within 24 hours, creating security risks and disrupting the peace of condo residents. 

 

To tackle this, the association has proposed several measures, including a ban on short-term rentals in condominium units and housing estates. They are also calling for clearer oversight and enforcement from the government, suggesting that violations should result in arrests without the need for receipt evidence. 

 

The THA has also voiced opposition to a proposed increase in foreign ownership of condominium units from 49% to 75%, arguing that it could lead to speculative buying rather than genuine residential use. 

 

Concerns were also raised about individual foreigners acquiring an excessive number of villas, particularly in popular destinations like Phuket. 
  



 

Thienprasit emphasised the need for clearer regulations and enforcement, stating that increasing foreign ownership percentages would not legalise existing illegal practices. He also highlighted the impact on local residents, citing examples like Barcelona, where short-term rentals have driven up housing prices.

 

Thirayuth Chirathivat, CEO of Centara Hotels & Resorts, echoed these concerns, describing the unregulated rental market as “unfair businesses”. 

 

He explained that hotels incur significant licensing and operational costs, while condominium rentals require minimal investment. Hence, he said, the government should tighten oversight and enforcement, adding that he hopes this issue will not be ignored. 

 

Thirayuth also noted a shift from group tours to individual Chinese tourists following the pandemic, leading to higher room rates and spending. He suggested that reducing budget tourists through stricter rental regulations could be beneficial for Thailand’s tourism sector. “We want quality tourists who appreciate Thailand, visit, eat Thai food, and spend as they should,” he added.

(2025/03/10-00:00)