The recent announcement in the Royal Gazette regarding the Thai government’s plans to update Ministerial Regulations regarding the operation of short-term rentals (STR) has proved a popular one.
At the end of August, the existing criteria for the definition of ‘non-hotel accommodation’ was changed from a maximum capacity of 20 guests and four rooms to no more than 30 guests and eight rooms.
The amendment acknowledges the unique status and increasing popularity of different types of accommodation, including tents, treehouses and floating homes, alongside traditional hotel and homestay options. The updated legislation is designed to recognise these types of businesses and create a pathway for smaller accommodation providers to be registered.
Mich Goh, Airbnb’s head of public policy for South-east Asia, India, Hong Kong and Taiwan, believes that new rules will be a boon to business and noted the potential knock-on effect for second-city tourism in Thailand.
Goh said: “We (Airbnb) are very pleased to see the Thai government recognising a diverse range of Thai tourism entrepreneurs as part of the country’s reopening efforts. The updated regulation marks a positive step in the right direction, and will help more tourism entrepreneurs and smaller accommodation providers benefit from the global travel rebound.
“They will further help drive travel to secondary destinations and support a more inclusive travel recovery across the country, which we have strongly advocated for in our initiatives with the Ministry of Interior and the Tourism Authority of Thailand.”
Goh also noted how the updated criteria reflect modern travel trends, “In addition to supporting local entrepreneurs, the new regulations also reflect how travellers’ preferences and behaviours have changed. Post-pandemic, travellers are staying longer, exploring more off-the-beaten-path destinations and seeking new travel experiences.”
Manosit Jaengjob, chairman of the Small Hotels Subcommittee, Tourism Council of Thailand, agrees.
“The updated Ministerial Regulations are an important step forward for Thailand’s travel accommodation sector and a much-needed change. While both large and small travel accommodation contribute to the economy, our smaller operators often provide an authentic Thai face and experience for guests,” said Manosit.
Manosit added: “It’s encouraging that the importance of smaller operators has been recognised and that we have more appropriate sector-specific rules. The new regulations will enable more small operators, local communities and families to derive income from Thailand’s tourism and spread the benefits to nearby neighbourhoods.”
However, Udom Srimahachota, vice-president of the Thailand Hotel Association’s western chapter, has sounded the alarm on potential tax evasion stemming from the revised STR regulations.
Udom told the Bangkok Post that the new regulations would exempt more properties from operating under the same rules as registered hotels. Instead of adding value to government coffers, this arrangement could lead to a potential loss of 20 per cent in income for the travel sector.
Citing an example, Udom said registered hotels would have to pay a hefty land and building tax, while non-hotel accommodation operators would get away with a second household rate.
He argued that unscrupulous developers would take advantage of the updated regulations to reduce their tax burden illegally.
Taman Wisata Candi (TWC) Borobudur, Prambanan, and Ratu Boko, the state-owned company that manages the temples, has set new regulations for visitors looking to explore the archeological site of Borobudur Temple in Central Java, Indonesia.
The new regulations include limited tickets for sale, pre-set visiting sessions, and a sale period of no more than a week ahead of the intended visit. These are aligned with the Indonesian government’s policy of imposing stricter visitor controls at the temple, with no more than 1,200 people allowed each day or 150 per session.
From hereon, tickets are only sold online and open for sale seven days before the intended visit; a maximum of 10 tickets may be purchased in a single transaction.
Visitors can choose from one of eight hour-long sessions, between 09.00 and 17.00.
Jamaludin Mawardi, general manager of the Borobudur Unit of TWC Borobudur, Prambanan, and Ratu Boko, said visitors are welcome to purchase an additional session for longer visits, and can do so with the help of a guide and subject to ticket availability.
He said the new regulations are being tested until October, and improvements will continue to be made.
“There will be a special landing page for tour operators on the website, including a special quota plan for ASITA (Association of the Indonesian Tours and Travel Agencies) Yogyakarta members using voucher codes,” Jamaludin added.
Indonesian travel trade players welcome the new regulations, especially as the sole online sales channel will remove ticket brokers, and are offering ideas for system improvements.
Monas Tjahjono, managing director of Monas Tours & Travel Surabaya, said TWC should make the sale of tickets transparent, so that visitors to the site can see the number of tickets available for sale in real time. This is important since tickets are very quickly snapped up, as soon as the online purchase slot is opened.
The temple’s online ticketing system could also take a leaf out of airlines’ book, where sales are open every day throughout the year and which allows visitors to see ahead tickets that are available for sale.
She then urges TWC to reduce website downtime.
Meanwhile, Trianto Sunarjati, director at Travel Help Indonesia, opined that the reservation system needs to be separated for the public and travel operators, so that the latter could purchase more tickets for tour groups.
However, ASITA vice chairman Budijanto Ardiansjah voiced concerns for the sudden regulations change “in the middle of the year, during the high season”.
As group bookings have been confirmed since last year, travellers worry if they would still be allowed into Borobudur Temple, while tour operators are concerned about cost increment and affected earnings.
Budijanto hopes that destinations or attractions that are the main tourist draws, such as Borobudur Temple, will consult tourism industry players when making decisions.
“Keep in mind that tourism is a future business, where business obtained today is the result of last year’s actions,” he stated.
Budijanto also suggested a dual online and offline ticketing system during the trial period, to allow tour operators to try for tickets manually should they fail to secure online tickets.