Surapong Techaruvichit, president of Thai Hotels Association

THE Thai Hotels Association (THA) is urging the government of Thailand to clamp down on businesses that provide alternative accommodation to travellers in Thailand, such as Airbnb, crying foul over unfair competition and the lack of enforcement of safety regulations.

This comes on the back of rising short-stay boarding at residential properties in Thailand, with unlicensed operators buying apartments and converting them into accommodations without being held to the same standards and costs that hotel owners are subject to.

Surapong Techaruvichit, president of THA, said: “We cannot keep up with the pricing these alternative accommodations are offering, since they require less investment to operate and do not have to comply with the same safety standards hotels are held accountable to.”

Hotels have to adhere to “many, many laws on security and safety”, including the size of corridors, size of fire escapes and having the necessary fire-fighting equipment, he explained.

In addition, Techaruvichit pointed out that the informal hotel sector allows for lapses in national security, saying that suspects in last year’s Erawan Shrine bombing managed to evade detection by putting up at an alternative accommodation.

“Article 38 makes it necessary for hotels to report guests (who contravene immigration laws), but (hotels in the informal sector) will never report these offenders as they themselves are illegal,” he elaborated.

Techaruvichit said THA will lobby against these “illegal hotel operators”.

He added: “We are trying to push for the government to enforce the Building Control Law and close illegal hotels down for contravening the Hotel Act.”

Enacted in 2004, after some consultation between the THA and the Ministry of Interior, the Hotel Act makes it illegal for apartments to be rented out on a daily basis, while allowing for monthly rentals.

He also proposed imposing taxes on these unlawful operators to level out the playing field.

Exact figures on the scale of hotels operating under these technical illegalities are not readily available, but the government estimates there are 8,000 hotels in Thailand’s formal tourism sector with some 380,000 rooms, which dwarves in comparison to the 800,000 rooms being sold by alternative accommodation sites.

Airbnb is only a small part of this, Techaruvichit said, putting its share of the market between five and 10 per cent.

Airbnb was approached for comment but did not respond as of press time.

The JW Marriott Phuket Resort & Spa

CHAIN hotel brands will be overshadowing independent establishments in Phuket in the near future, with 90 per cent of all developments in the pipeline belonging to an international brand, according to data by consultancy C9 Hotelworks.

From a total of 32 projects slated to open within the next few years, only four will be operated by independents while Marriott and Best Western will come to dominate, collectively controlling more than 25 per cent of Phuket’s supply pipeline in terms of rooms.

An increase of 5,216 rooms between 2016 and 2019 is forecasted, with chains accounting for 4,677 keys.

In terms of number of properties, Louvre has the most in the pipeline with four total, followed closely by Marriott with three. Giants Wyndham, Accor and Starwood, among others, will open two properties each, while small to medium-sized brands such as IHG, Banyan Tree and Kempinski will be unveiling a single property each.

“Sentiment by developers is now firmly leaning on the side of the chains. It is not only reflected by the current pipeline but also demonstrated by a number of recently announced conversions, notably led by French hotel group Accor,” said Bill Barnett, managing director, C9 Hotelworks.

He adds: “We expect this trend to continue, with a secondary shift that takes the form of increased number of hospitality-led residences.”

According to the study, around 34 per cent of these new hotels will be erected in the popular west coast region of Patong.

UPMARKET boutique hotel Noku Roxy, which only opened in Kyoto last November, is seeing a strong 70 per cent forward reservation rate at the hotel this month.

Teo Hong Yeow, managing director of Roxy-Pacific, told TTG Asia e-Daily that the decision to open in the traditional low season paid off as the inevitable early kinks were worked out during the relatively quiet winter months.

“We have been particularly targeting shorthaul but frequent, repeat visitors because that is our immediate region and market,” he added, explaining that “about 50 per cent of guests are from overseas, but only 10 per cent to 15 per cent of this group are longhaul visitors.”

The 81-room six-storey hotel is primarily being marketed through “bespoke travel agents that specialise in Japan,” he said, adding that the use of social media also helps.

However, Yeow insists that the property’s strongest promotional tool remains word-of-mouth recommendation from guests.

AFTER many failed attempts, the Malaysian government has finally launched ENTRI (electronic travel registration and information) and e-visa services for mainland Chinese travellers. Both services started on March 1 and will run until December 31.

Malaysian prime minister Najib Abdul Razak had earlier this year announced a way for short-stay travellers from mainland China to visit Malaysia visa-free.

This has resulted in ENTRI, where mainland Chinese travellers visiting Malaysia for a period of not more than 15 days can apply for visa-free entry, with processing fees costing 160 yuan (US$25).

Meanwhile, the launch of e-visa services allows applicants with not more than 30-day stays to apply for visas online, with processing fees costing 200 yuan.

THAILAND’s Don Mueang International Airport will officially reopen its upgraded Terminal 2 tomorrow, allowing the airport to accommodate 30 million passengers a year, 11.5 million more than before.

The terminal was already partially reopened since December 24, 2015, allowing most domestic flights to operate from there.

“It is going to relieve the crowded situation at Don Mueang,” said Chula Sukmanop, director general, Department of Airports. “The area is almost double from what we have now.”

Upgrades comprise improvements to the terminal, three concourses, walkways and toilets.

There will, however, be no increase in flight capacity as airside facilities – such as runways, taxiways and aprons – did not undergo upgrades, said Sukmanop.

An upcoming 10 billion baht (US$282.3 million) third phase of developments will focus on renovating the old domestic terminal to include a new walkway connecting the building to the Sky Train station and parking for up to 3,000 cars.

MALAYSIAN tourism authorities, overwhelmed by protests from Indians and Sri Lankans over a restrictive visa entry process, say they are seriously considering relaxing the policies.

“I will send recommendation on the need to relax the visa rules,” said Daljit Singh, member of Tourism Malaysia’s board of directors, during a press conference in Colombo last week.

He was responding to comments that while Malaysia wants to welcome as many visitors as possible, its visa process for Indians and Sri Lankans remain highly restrictive.

“We were told in India too that the visa process was restrictive and (we) need to look into this (as a matter of urgency),” added Daljit.

At current, visitors to Malaysia have to submit documents such as bank details, employer’s letter and business registration, among others. Meanwhile, visa fees have sharply risen since the process was outsourced to an agency in 2014.

South Asia is an important source for Malaysia, but arrivals from India and Sri Lanka have dropped significantly last year to 722,141 and 51,337 respectively, from 770,108 and 61,670 in 2014.

“We want to increase or retain the earlier numbers,” said Daljit.