Thai Hotels Association concerned over popularity of Airbnb

[buksida]

Extracts taken from following article ...

Much ado about Airbnb
Thailand is a popular place to visit and there is strong demand for places to stay, but current laws prohibit owners from renting their private properties at a daily rate on Airbnb.

Airbnb is an online service that allows property owners to rent out their properties directly to end-users, which allows owners to make money off their properties and provides another option for people looking for accommodations.

The value proposition to renters is that landlords/owners with unique properties or properties in unique locations can list their space and renters have an opportunity to share in that unique experience. It allows vacationers to have a "native" or "local" experience that they could not have at fully serviced hotel chains with their more touristy feel.

A growing question on the minds of many, especially in the hospitality industry, is how much Airbnb is going to disrupt the hospitality sector and whether it will lead to the cannibalisation of the professional hotel industry. At a basic level, both Airbnb rental properties and hotels provide the same function -- a clean bed, a roof and shower, but from there the two accommodation services offer different experiences.

Thailand, unlike some other countries, has been far less friendly to landlords listing on Airbnb looking to make extra money through renting unused properties. Understandably, traditional hotel owners want to prevent as much competition as possible. As a result, the Thai Hotels Association has called for legal action to be taken against people offering their properties on Airbnb.

The Tourism Ministry has made it clear that property owners "illegally" renting out their properties to tourists would face the same taxes that "legitimate" hotels are required to pay.

Full article: http://property.bangkokpost.com/news/12 ... out-airbnb

Thoughts: I have no idea where they pull these ridiculous tourist stats from, just opening your eyes will tell you occupancy is down this year compared to previous. Again Thailand trying to protect big business and the hotel monopolies and stifling the public from trying to make a bit of revenue themselves.

[oakdale160]

I hae founda great one in BKK--its the 'Maids quarters" in a luxury condo owned by a lady who is a widow. She is very selectivve and I think that she enjoys the company. At my 2nd ivsit I asked if I could bring my BKK ladyfriend, she said yes and they have become great friends!! She has now taken her listing off Airbnb after being visited by a 'rude official'

[buksida]

Airbnb highlights Thai growth

More than 1.15 million Airbnb guests travelled to Thailand last year, signalling further growth in hospitality entrepreneurship this year, says Airbnb.

Data from 2017 shows that over 1.15 million Airbnb guests arrived in Thailand, up 67% from 2016.

Airbnb, an online marketplace for lodging, said Thailand's popularity with domestic and international travellers shows no signs of slowing down, as people worldwide continue to seek out unique and authentic experiences in the country.

People from all over the world flocked to Thailand last year, with the largest proportion of inbound international guests in 2017 coming from China, the US, Singapore, Malaysia and Britain.

More: https://www.bangkokpost.com/business/to ... hai-growth

[oakdale160]

UBER cars and AIRBNB are part of the same phenomena. People making money by using their own assets whivch are not being used. The level of personal interaction is part of the attraction.

[STEVE G]

UBER cars and AIRBNB are part of the same phenomena. People making money by using their own assets whivch are not being used. The level of personal interaction is part of the attraction.

It worked when it was like that but if you look at Airbnb listings for many cities now, they are full of cheap hotel rooms and people who have subdivided large properties into small rooms with minimal furniture in the fashion of what used to be called slum landlords in the UK.

[Bluesky]

Recently travelled through the north of Thailand and had taken the dog with us. Usual problem of finding pet friendly hotels that were of reasonable quality and price which seem to be few and far between. AirBNB has filled this niche market well with clean reasonably priced accommodation with the ability to cater for specific needs. We were able to tailor our trip, and had the opportunity to look for something a little different during our travels. As an example whilst in Pai we stayed in pet themed accommodation on a farm just outside of town. It was aptly named 'The Doghouse', a place I am well familiar with at home from time to time! It was exceptionally clean and had all the amenities we needed along with friendly and helpful hosts. (Something a few Thai Hotelliers could well learn from.)

We used AirBNB for most of our accommodation during the trip and met some delightful hosts along the way.

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[MDMK]

I find airbnb particularly good for Hua Hin and surrounding areas, especially when you compare it to the hotel prices. We would most likely end up in the Marriot/Hilton/Intercontinental/Centara price bracket if we were to stay in a hotel. On Airbnb I can find loads of really nice high spec 2 bedroom beach front condos in Hua Hin for less than half the price of those hotels. Often MUCH less than half the price. Last year 21 nights in a really nice condo was roughly the same amount as 8 or 9 nights in a standard room at the Intercontinental. And the condo was more or less next door to the Intercontinental.

[limbu]

It's not only hotels that are concerned. A couple of condos in Khao Takiab including my own are having to face the issue. Our management has informed apartment owners that under the Hotel Act B.E. 2547 (2004)
Section 15. No person shall operate hotel business unless he has obtained a licence issued by the Registrar. The application for and issuance of a licence shall be in accordance with the rules and procedures prescribed by the Minister.
Section 59. Any person who violates section 15 paragraph one shall be liable to an imprisonment of not exceeding one year or to a fine of not exceeding twenty thousand baht or to both, and an additional fine of not exceeding ten thousand baht a day throughout the period of violation.

[Pleng]

Does section 15 classify what "hotel business" actually consists of, though?

[limbu]

The hotel act has an unofficial English translation on http://www.krisdika.go.th/. Its definition of an hotel is as follows:
Section 4. In this Act, “hotel” means an accommodation established for business purposes of providing temporary accommodation service for travelers or any other person in exchange for compensation, but not includes:
(1) an accommodation established for providing temporary accommodation service carried out by a government agency, State enterprise, public organization, or other State agency, or for charitable or educational purposes, but not on profit or income sharing basis; (2) an accommodation established for the purpose of providing accommodation service for monthly paid service charge or upward only;
(3) any other accommodation prescribed in the Ministerial Regulation;

[Pleng]

Ok, so that does pretty much cover AirBNB lets then.

[buksida]

Off-the-beaten-track destinations in Thailand experiencing explosive Airbnb growth
New data released today highlights how the Airbnb community is helping grow tourism in off-the-beaten-track destinations across Thailand and the Asia Pacific, and helping spread the benefits of tourism beyond big cities and major tourism hotspots.

Similar to other countries in the Asia Pacific, the Airbnb community is growing rapidly in off-the-beaten track destinations in Thailand. This growth is powered by travellers increasingly seeking more local, unique and authentic experiences. In 2018, the number of Airbnb guest arrivals visiting off-the-beaten path destinations in Thailand grew by 53% year-on-year and some areas with the fastest growth included:
1. Rawai – 92%

2. Chiang Rai – 90%

3. Hat Yai – 214%

4. Saladan – 71%

By helping spread tourism across Thailand, Airbnb is bringing the economic benefits of tourism to local communities that haven’t shared in these benefits in the past. With up to 97 percent of the listing price going directly to Airbnb hospitality entrepreneurs, and almost 50 percent of guests’ spending occurring within the neighborhoods where they stay, the financial benefits of tourism can be significant for travel destinations.

https://thethaiger.com/hot-news/tourism ... bnb-growth

[oakdale160]

Excellent news for both the travellers and the smaller communities getting some tourist spending. I guess we are all feeling,when and how will the elite put a stop to it.

[buksida]

The Hotel chains wont like this ...

Airbnb and GSB launch partnership to support local homestays
Airbnb, the world’s leading community-driven hospitality company, and the Government Savings Bank, Thailand’s state-owned bank, on Friday announced a partnership to help promote Thai hospitality entrepreneurs, starting with local homestay owners.

A press release on Friday said that through the partnership, GSB will help ensure better funding for hospitality entrepreneurs by providing flexible-interest rate loans and instalment plans.

Airbnb will work with GSB to help build capacity through hospitality and hosting training while connecting homestay owners to its worldwide platform and marketplace network of over 500 million guests.

Dr. Chatchai Payuhanaveechai, GSB President and CEO, and Mike Orgill, Airbnb General Manager for Southeast Asia, Hong Kong and Taiwan, jointly launched the partnership on Friday.

http://www.nationmultimedia.com/detail/ ... s/30369570

[buksida]

Hotel association wants rules on short-term rentals, home sharing
The Thai Hotels Association has again asked for a meeting with the Minister of the Interior to discuss the impact of short-term rentals and home sharing services like Airbnb on the domestic hotel business. The Association's president Supawan Tanomkieatipume reminds him Thai law officially doesn’t, technically, allow owners of condos to rent out their units for less than 30 days without a hotel licence.

But he acknowledges that the practice is widespread and almost impossible to police.

“THA has no intention of seeking a ban on these services in Thailand. We just want the government to issue suitable regulations on the operations of these service providers, and enforce related laws to protect customers.”

https://thethaiger.com/hot-news/tourism ... me-sharing


In other words; 'we want you to tax them out of business'