BANGKOK, Thailand – Thailand’s proposed Accommodation Establishments Act could make it easier for small lodging businesses to operate legally while giving guests stronger protection against misleading advertising. However, the Thai Hotels Association (THA) has raised concerns that easing registration requirements without addressing building, zoning and environmental laws could create safety risks and regulatory loopholes.
The draft legislation would replace the Hotel Act B.E. 2547 (2004), broadening the legal definition from “hotel” to “accommodation establishment” to cover a wider range of lodging, including hostels, homestays, guesthouses, tents, treehouses and short-term rental properties.
The proposed framework would regulate accommodation according to size and risk, rather than applying the same licensing process to every business. Its aim is to bring more small operators into the formal system, reduce administrative burdens and better reflect changing tourism trends.
Three levels of regulation
Under the draft, accommodation establishments would be divided into three groups.
- Notification: Properties with no more than eight rooms and capacity for up to 30 guests could operate after notifying the registrar.
- Registration: Properties with nine to 40 rooms or capacity for 31 to 150 guests would register before opening.
- Full licence: Establishments with more than 40 rooms or capacity exceeding 150 guests would still require a full operating licence.
The proposal also introduces a “Super Licence” concept for the largest category. If requested when applying, an accommodation licence could cover related activities under as many as 10 additional permits, including restaurants, spas, swimming pools, fitness facilities and certain sales activities involving alcohol, tobacco and gas.
Stronger rights for guests
The draft seeks to make advertising legally significant in the agreement between accommodation providers and customers. Advertised room rates, promotional terms, descriptions and photographs could form part of the contractual commitment.
Guests would be entitled to cancel and seek refunds when the accommodation or services materially differ from what was advertised. The proposal would also prohibit unfair terms, including provisions allowing operators to cancel agreements unilaterally or requiring customers to waive their rights in advance.
Safety requirements would remain part of the framework. Depending on the type of accommodation, operators would need to display the establishment’s name, provide evacuation plans and emergency exit signs, and meet appropriate fire-safety requirements. Special accommodation such as tents, treehouses, trailers and converted containers would be subject to rules suited to their design.
The draft also calls for electronic guest registers, with information submitted to the registrar every 24 hours. Details concerning foreign guests would be forwarded to the Immigration Bureau through the designated system.
Hotels association questions whether the real problems are being addressed
Thai Hotels Association president Thienprasit Chaiyapatranun argues that the existing Hotel Act is not the main obstacle preventing some small and medium-sized properties from becoming legally registered hotels.
He says the more significant barriers arise from three other areas of law: building control, town planning and environmental regulation. In his view, reform should address these underlying restrictions rather than creating a new accommodation law that could leave important gaps.
The association is particularly concerned that the draft does not clearly specify the types of buildings that may be used as accommodation. Without sufficiently precise definitions, commercial buildings, shophouses, offices or factories could potentially be converted into short-term lodging without adequate scrutiny.
It also questions whether the notification and registration systems for smaller properties would provide sufficient safety oversight. Under the current hotel framework, certain properties are subject to building-safety inspections and other regulatory requirements. The association fears that a change in legal classification could allow some buildings to avoid controls that would otherwise apply.
Another concern involves environmentally sensitive and protected areas, including coastal locations. The association argues that a simplified notification process must not become a way to bypass zoning restrictions or facilitate unauthorised development.
Online booking platforms and penalties under scrutiny
The proposed law also refers to online travel agencies and accommodation booking platforms. However, the association says the provisions lack clear requirements for platform registration, verification of accommodation providers and penalties when illegal properties are advertised.
It wants platforms to list only establishments holding the appropriate notification, registration or operating licence, with penalties for non-compliance and coordination with the Ministry of Digital Economy and Society.
The association also argues that the proposed daily fines may be too low to deter high-revenue operators. Some premium accommodation businesses can earn substantial sums even with relatively few rooms, making financial penalties an insufficient deterrent if they are not proportionate to the scale of the business.
Short-term condo rentals remain a separate legal issue
The draft would not automatically legalise daily rentals of condominiums or houses in residential developments. Under Article 18, the registrar could issue the relevant notification, registration or licence only where the laws governing land allocation or condominium ownership already permit the activity.
That means changes to those underlying laws would be necessary before such rentals could be permitted in cases where they are currently prohibited. The association also opposes retrospectively changing the rules for older condominiums whose owners purchased their units for residential use, citing the potential impact on existing residents’ rights and expectations.
The proposed Accommodation Establishments Act is intended to modernise Thailand’s lodging regulations and make it easier for smaller operators to enter the formal economy. But the debate highlights a central challenge: simplifying procedures for businesses while ensuring that building safety, environmental protection, consumer rights and residential regulations remain enforceable.
The draft is expected to undergo further scrutiny, with the Thai Hotels Association calling for revisions before the legislation advances.
