Thailand cracks down on unlicensed Phuket hotels

BANGKOK — With illegal hotels now outnumbering legal ones in the tourist magnet of Phuket, authorities are threatening to shut down illegal establishments unless they obtain a licence before February.

A survey of the province in October found 1,366 hotels operating without hotel licences, with more than half located in the Patong beach area in Kathu district, followed by Thalang and Muang districts, according to Phuket Governor Chokchai Dejamornthan.

Illegally operated hotels have until Jan 31 to legalise their operations, he said, “otherwise, we will shut down and prosecute them”.

At present, there are 424 legal hotels in Phuket, with a combined 45,740 rooms. Nearly half or 204 hotels with 19,395 rooms are in Muang district. Kathu district has 148 hotels with 18,839 rooms, and Thalang district has 72 hotels with 7,506 rooms.

Illegally operated hotels are classified into three types. The first type is hotels without a hotel licence. Operators in this category would be able to apply for a hotel licence if they have facilities to qualify as a legal hotel such as parking spaces, security systems and fire-prevention measures that comply with the Hotel Act. The second category includes those in the grey area like apartments and condominiums. They have a construction permit and a building opening certificate, but are without amenities required for hotel operation. The final type covers businesses without a construction permit or a building opening certificate.

“If a condo-unit owner wants to charge a daily rent like hotels, they need to ask for permission from other co-owners before applying for a hotel licence,” said Mr Chokchai. He said those unable to register by Jan 31 can ask for a grace period, which will be considered on a case-by-case basis.

Illegal hotels have an unfair advantage over legally operated hotels since they are cheaper to run.

“Illegal hotels pay no tax. They have no security systems, and no insurance is provided for guests. Many have insufficient parking spaces and use public areas for their guests’ parking, which causes trouble to neighbours or those nearby,” said Mr Chokchai. BANGKOK POST