Having attracted more than 35 million tourists in 2024, Thailand is now considering ways of tackling a growing problem: preventing the illegal renting of condo units.
State agencies are being urged to liaise with online accommodation booking platforms to develop a system that allows only registered hotels and accommodation providers to accept online bookings.
The initiative comes from the House Committee on Consumer Protection following recent talks with state bodies and online travel agencies regarding the problem of condo units being illegally rented out, in breach of the Hotel Act 2004.
Chanin Rungtanakiat, a Pheu Thai Party list-MP and committee member, said unlawful renting of condo units is commonly found through online booking platforms, so it is partially the responsibility of those platforms.
"Their role in enabling these transactions is similar to enabling the sale of illegal products," he said.
Under the law, violators face a fine of up to 20,000 baht, with an additional daily fine of 10,000 baht until the illegal rental activity ceases. Most condo bylaws also explicitly prohibit daily rentals.
He urged that the government should integrate the efforts of various agencies to help stamp the practice out. These include the Department of Provincial Administration, the Electronic Transactions Development Agency, and the Office of the Consumer Protection Board.
The eventual solution is to establish a system linking the database of hotel and accommodation licensees with online travel agencies (OTAs) handling room bookings. This would require any property registered to provide lodging services to input a legally valid license code.
If adopted, this measure could reduce illegal accommodation, elevate service standards and safety levels for lodging in Thailand, and provide peace of mind for guests, booking platform operators, and fellow residents in condos.
The government also issued a warning to foreigners who buy condo units and rent them out as hotel rooms that they are violating the law, the Bangkok Post reported.
The Thai Hotels Association (THA) has also called on the government to amend existing laws and employ stricter legal enforcement to tackle the issue of daily condo rentals by foreign investors.
The issue is primarily related to condominium owners who purchase several units and list them on online platforms for short-term rentals at significantly lower prices than hotels can offer.
This practice, commonly referred to as "zero-dollar condos", is considered illegal under Thai law, Thienprasit Chaiyaphatranan, president of the THA, said, adding that it is causing distress among residents as well as hurting the business of hotel operators.
Thienprasit added that a 20,000 baht fine for violating the law was insufficient. He suggested a stiffer penalty to deter illegal business practices that have caused significant damage to the country's hotel and tourism industry, reported The Nation.
The THA estimated that daily condo rentals have so far cost the hotel industry more than 10 billion baht in lost revenue, not to mention that these operators have never paid tax to the Thai government.
Thienprasit also called on local police officers to increase monitoring of agencies who are responsible for placing keys to these condo units in designated boxes for customers to pick up later.
Andy Probert is an independent journalist who writes about global travel news, airlines, airports, and business. His work has appeared globally on the BBC, and in many national newspapers and magazines.
