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New Hotel Regulations in Thailand: What You Need to Know
05/12/2023
Thailand’s hospitality sector has undergone significant changes in recent years, with a shift towards a more wide variety of accommodations. As a result, Thailand’s Ministry of Interior has introduced an amendment to the Ministerial Regulation Regarding the Types and Criteria for Hotel Business Operations.
These new regulations, which came into effect on October 30, 2023, have been designed to adapt to the evolving trends of travellers, and accommodation trends in Thailand and will be a significant advantage for smaller businesses such as those wishing to rent out their villa as a business.
Key points
- The exemption from requiring a hotel license has been increased to eight rooms and 30 guests
- The new regulations establish a new category of accommodation known as ‘non-hotel accommodations including tents, hostels and rafts.
- Non-hotel accommodation is required to register with the local authorities and Official Registrar. Registrations must be renewed every 5 years.
- Small hotels that meet the new criteria for non-hotel accommodations can change their status.
- The new regulations also introduce safety and utility requirements for non-hotel accommodation.
Changes in Hotel License Exemption Threshold
Under the previous regulations, any short-term accommodation with more than four rooms and can accommodate 20 or more guests was classified as a “Hotel” and required a hotel license.
However, under the new regulations, the threshold for the exemption from requiring a hotel license has been increased to eight rooms and 30 guests. Any hotel or form of accommodation that does not cross this threshold is now exempt from the requirement of obtaining a hotel licence. This new regulation applies to a variety of types of accommodation including rental villas, small guesthouses and other newly classified accommodation.
These new regulations provide opportunities for smaller-scale accommodations to operate legally without the need to obtain a hotel license. This change benefits non-traditional accommodation services, many of which offer a unique chance to attract tourists and contribute to local communities. This could be a significant advantage for those who wish to rent their villa out as a business.
New Definitions for Non-Hotel Accommodations
The new regulations establish a new category of accommodation known as ‘non-hotel accommodations’ and outline the criteria for what will be considered as such types of accommodations.
Examples of types of accommodation that will be considered as ‘non-hotel accommodation’ includes:
- tents,
- rafts, and
- hostels.
Do Non-Hotel Accommodation Need to Register With the Authorities?
To ensure compliance and safety standards, the new regulations introduce, non-hotel accommodation is required to register with the local authorities and Official Registrar. Registrations will be valid for a period of five years, therefore any business that qualifies as non-hotel accommodation must apply for renewal every five years.
Non-hotel accommodation will also be subject to periodic inspections by the authorities in order to evaluate the accommodations and ensure safety requirements are being satisfied.
Registrations for businesses wish to register as non-hotel accommodations are expected to be able to be completed online.
Can Small Hotels That Meet The Non-Hotel Accommodation Criteria Change Their Status?
Small hotels that meet the new criteria for non-hotel accommodations are also provided with an opportunity to change their status. If a small hotel has previously obtained a hotel license but now falls within the criteria for non-hotel accommodation, they can choose to cancel their hotel license and register as a non-hotel accommodation. By doing so they will be exempt from complying with the regulations and requirements of a hotel which are more stringent.
What are the Safety and Utility Requirements for the New Types of Accommodation?
The new regulations also address safety and utility requirements for non-hotel accommodation. Temporary structures such as tents and cabins must satisfy certain safety criteria, including:
- having sufficient lighting.
- fitting internal door locks.
- being exempt from needing a door peephole.
- hostels must provide suitable bathroom facilities and clearly label each bed.
- floating hotels, such as rafts or boats, must provide life jackets, install secure guardrails, have sufficient lighting, place fire extinguishers in prominent locations, and have food waste bins with a minimum capacity of 40 litres.
These regulations aim to enhance safety, comfort, and quality in these new forms of accommodation.
Compliance with Existing Laws
It is important to note that hotels that fall under certain categories in the new regulations, must also comply with entertainment venue laws. This includes accommodation that has dining rooms, restaurants, kitchens, entertainment venues, and conference rooms. If the accommodation has any of these features they may need to obtain certain business licences.
Examples of some of the licences they may be required to obtain include:
Restaurant Business License
If your hotel provides catering or restaurant services, you need a permit to sell food, liquors, and cigarettes.
Entertainment License
You will need a separate license if your hotel offers entertainment, such as live music or performances.
Liquor and Tobacco License
If your hotel serves alcohol or tobacco products, you must obtain a separate license.
It’s important to note that obtaining these licenses can be time-consuming and complex, especially if you need to become more familiar with the local regulations.
How can Belaws help?
For more information about starting a hotel in Thailand, why not talk to one of our experts now?
Please note that this article is for information purposes only and does not constitute legal advice.
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Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. A consultation with one of our legal experts is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project.
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Frequently asked questions
Is hotel business profitable in Thailand?
The profitability of a hotel business in Thailand varies based on location, size, and management. Recent regulatory changes have provided opportunities for smaller-scale accommodations, potentially impacting profitability positively for some.
How much does it cost to start a hotel business?
The cost of starting a hotel business varies widely based on factors like location, size, and amenities. It’s essential to consider expenses related to property acquisition, renovations, staff, licenses, and compliance with regulations.
Can a foreigner open a Thai company?
Yes, foreigners can establish companies in Thailand, but specific regulations and restrictions apply, often requiring Thai partnerships or meeting certain criteria for ownership or investment.
How much do hotel owners make a month?
Hotel owners’ earnings can vary significantly based on the success and size of the establishment, occupancy rates, expenses, and the overall market conditions. Concrete monthly earnings can vary widely.
Can a foreigner own a hotel in Thailand?
Foreigners can own hotels in Thailand, but specific regulations and ownership structures must be adhered to in compliance with Thai laws.
Can foreigners own 100% of a business in Thailand?
Foreign ownership restrictions apply in various sectors in Thailand. While some businesses allow full foreign ownership, certain sectors have limitations necessitating Thai partnerships or meeting specific criteria.
Can an American own 100% of a business in Thailand?
Ownership of a business in Thailand by an American or any foreigner often requires adherence to foreign ownership regulations and potentially necessitates a Thai partnership or meeting specific criteria.
How much money do you need to start a business in Thailand?
The capital required to start a business in Thailand varies depending on the industry, business structure, and location. Costs can include capital investment, licensing fees, operational expenses, and compliance with regulations.
What businesses are restricted for foreigners in Thailand?
Certain industries in Thailand have restrictions on foreign ownership, including areas like land ownership, media, legal services, and others, requiring Thai partnerships or meeting specific criteria.
What are the recent changes in Thai hotel regulations that might impact small-scale accommodations?
The recent regulatory changes in Thailand have expanded the scope of accommodations beyond traditional hotels. These changes, effective since October 30, 2023, introduce a new category termed ‘non-hotel accommodations’. This category includes various types such as rental villas, hostels, rafts, and tents. These smaller-scale accommodations now have specific criteria and licensing thresholds that allow them to operate legally without requiring a traditional hotel license.
Are there specific safety and utility requirements mandated for non-hotel accommodations in Thailand?
Yes, the new regulations introduce safety and utility requirements for non-hotel accommodations. Depending on the type of non-hotel accommodation, there are specific safety standards. For instance, temporary structures like tents and cabins need to meet lighting and locking requirements. Hostels must have proper bathroom facilities and bed labeling. Floating hotels (such as rafts or boats) require life jackets, secure guardrails, adequate lighting, fire extinguishers, and specific waste bins.
How do the new regulations differentiate between traditional hotels and non-hotel accommodations like rental villas or guesthouses?
The differentiation primarily lies in the criteria for exemption from traditional hotel licensing. Under the new regulations, accommodations that do not exceed eight rooms and 30 guests fall under the category of non-hotel accommodations. This includes rental villas, small guesthouses, and other smaller-scale lodgings. They have the opportunity to operate as non-hotel accommodations without the stringent requirements and regulations imposed on traditional hotels.
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