(L to R) TAT Pattaya
office director Athapol Vannakit, Chonburi PAO President Wittaya
Kunplome, and THA Eastern Region President Bundarik Kusolvitya discuss
the recent claims by Thailand’s Office of the Auditor General that not
enough taxes are being collected from hotels in Chonburi province, which
includes Pattaya.
Warunya Thongrod
Thailand’s Office of the Auditor General has told Chonburi
authorities to crack down on Pattaya hotels, citing a substantial
shortfall in expected tax revenue.
In a document sent to the Chonburi Provincial Administrative
Organization, the OAG accused many Pattaya hotels of dodging taxes
altogether, saying the region’s tax revenue pales significantly compared
to other tourist destinations in the kingdom.
PAO President Wittaya Kunplome told an Aug. 8 meeting of the Thai Hotels
Association Eastern Region that only 19 million baht in taxes were
collected, substantially less than areas like Phuket, Bangkok or Koh
Samui.
“I sympathize and understand that our hotels are
having a difficult time with their businesses. But this year, the OAG
has sent a letter stating that too little in taxes has been collected,”
Wittaya told the meeting at the Royal Cliff Beach Resort. “I will
discuss this with the provincial government council and inform the
association of the new tax rate later.”
Currently, Wittaya said, the province collects a half-baht off every
daily room rental, the minimum required by law. The law tax rate was
agreed upon with the hotels association “long before I came into
office,” Wittaya said, as a means to spur tourism.
THA Eastern Region President Bundarik Kusolvitya told members that the
auditor’s office has instructed Chonburi authorities to step up efforts
to collect taxes from hotels.
Bundarik, meanwhile, rejected the notion that
association members were cheating on taxes, blaming the revenue
shortfall on a plunge in room bookings during March.
“If booking rates in Phuket or Samui are compared with Pattaya, there
are obvious differences. So, of course, the tax amounts collected in
those areas will be higher,” Bundarik said.
“I am confident that the members of the association pay taxes,” Bundarik
continued. “But there are other (non-member) hotels in this city that
pay no taxes. I think the PAO should take measures to collect taxes from
these hotels outside the system. When this is done, the OAG will be
satisfied with the results.”
She warned Wittaya that the association would object to a large increase
in tax rates, claiming the industry was fragile and could not support
much-higher taxes.
The Tourism Authority of Thailand’s Pattaya Office reported at the same
meeting that hotel bookings were running 70-80 percent of normal. In
March, bookings had fallen to 50 percent of average.
