The hospitality industry in Thailand is one of the most developed hospitality industries in South East Asia as Thailand started to attract tourists much before than the neighbor countries. In 2023 the Tourism Authority of Thailand (TAT) updated the latest tourism situation, confirming that foreign tourists will exceed the 27 million. Hotel business operation is a restricted business in Thailand. Any operators, who wish to operate a hotel business in Thailand, must comply with both general and specific law of hotel business operation in Thailand.
Hotel Act B.E. 2004 (2543) has a significant role of regulating the hotel business operation in Thailand. It regulates the hotel qualification that must obtain a hotel license in the related ministerial regulation.
Recently, there is a new ministerial regulation on the type and criteria on hotel business operation (no. 2) B.E. 2023 (2566), which states new amendment on type and criteria on hotel business. H&P Bangkok lawyers have prepared a brief legal update on the amendments in the law affecting hotel businesses in Thailand:
Criteria for operating a hotel business in Thailand
Although hotel business is a controlled business in Thailand, not all types of hotel business must be registered for hotel license in Thailand. The new minitrial regulation has stated on this matter as follows:
“Number 1 The accommodation, which has the number of rooms in the same or each building not more than eight rooms and can handle the guests not more than thirty people that is established to be temporally accommodation for the travelers or other persons for compensation and the authority has examined and given the certificate, is not a hotel according to (3) of the definition of “hotel” in section 4”
From the above regulation, it shows that some of the hotel business may not be a “hotel” according to the Hotel Act, which is not mandatory to apply for the hotel license. The hotel according to the Hotel Act must have the following qualifications.
– Have at least 8 rooms, whether they are in the same or separated building
– Can handle or host at least 30 guests
Hence, the hotel business that has at least 8 rooms and can handle the guests at least 30 persons must register to obtain the hotel business license with the authority and must comply with the hotel related law such as building control law.
On the other hand, the hotel business, which has not more than 8 rooms and can handle the guests not more than 30 persons, does not need to apply for the hotel license.
This legal update is an amendment from the regulation in 2008, which stated that the accommodation with at least 4 rooms and can handle the guests of 20 persons is by definition a hotel according to the Hotel Act and must apply for the hotel business license.
This change in the law is made because many buildings have a unique design, which should be preserved for a tourist purpose. If the building must be renovated according to the building law to comply with the hotel regulation, it will eliminate the uniqueness of the building and the tourist attraction.
Classification and types of Hotels under Thai Law
The ministerial regulation on the type and criteria on hotel business operation divides the hotel types into 4 groups as follows:
1. First type of hotel means the hotel that only has the accommodation service and does not have more than 50 rooms.
2. Second type of hotel means the hotel that only has the accommodation more than 50 rooms, or has accommodation and restaurant, or food service area, or area for making food.
3. Third type of hotel means the hotel that has the accommodation room, the restaurant or food service area or area for making food, and entertainment area according to law on entertainment area and meeting room.
4. Fourth type of hotel means the hotel that has the accommodation room, the restaurant or food service area or area for making food, entertainment area according to law on entertainment area and meeting room.
The new regulation added the details on the number of rooms in the first type of the hotel to include having not more than 50 rooms and having at least 50 rooms in the second type of the hotel. Each type of the hotel must comply with specific regulation stated for each type of the hotel. Nonetheless, all types of hotels still have to comply with general regulation as well.
Regulations on Hostels and other type of hotels in Thailand
The amended regulation also included more on the hostel type of hotel. The amendment states that the hostel must include enough toilet for the guests and must provide the number of the bed in number to be visible for the guest as well.
The regulation also states other types of the hotel as well. It is stated that the hotel, which has the characteristic of a floating raft, or a tent has to provide special equipment for the guests as well. The floating raft and a tent hotel are recently added to the regulation because the trend of this kind of hotel in Thailand is increasing.
To sum up, apart from the hostel inclusion and more regulations on the hostel, this amendment of the ministerial regulation on the type and criteria on hotel business operation, mainly addresses the definition of the “hotel” stated in the Hotel Act. The definition is changed by increasing the number of the rooms and the number of the guests that the hotel can handle. This will have a positive effect in the hostel and small hotel industry in Thailand making less hotel businesses facing the responsibility to apply for the hotel business license.
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