A fresh strategy to boost the low-cost tourism sector

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The proposal would raise the maximum size and occupancy to 10 and 30 guests, respectively, and broaden a “homestay” provision under the Hotel Act for small enterprises with little more than 20 visitors in little more than four rooms. The Thai Hotels Association was against it, claiming that enabling people to run larger homestay businesses would endanger safety and security and give small hotels a way to evade paying property taxes. The THA president also claims that if they are not forced to disclose who is staying on their premises, these small hotels could turn into criminal hideouts.


Furthermore, owners of condo or apartment buildings can abuse this exemption. These homestay enterprises could disregard rules that would enhance the environment, security, and safety requirements in addition to not paying hotel taxes. These small hotels would not be subject to the rules governing water and waste disposal, the specifications for fire alarms and extinguishers, and other health and safety criteria. According to the group, they support expanding the law to include new lodgings like floating hotels. The Ministry of Interior claims that allowing small hotels to act as homestays will have a significant positive impact on the community and aid in the recovery of the low-cost tourism industry.


The new approach enables locals to open a guesthouse as an additional business to boost their monthly income. The THA has asked for a public hearing on the matter in an effort to influence the Ministry of Interior’s Department of Provincial Administration to take action. They contend that the restrictions put in place to support small firms would instead operate against them, giving them an unfair edge. Tourists, especially those on a restricted budget, will have more lodging options if this is done.