Renovate and Legalize a Small Hotel in Thailand According to Ministerial Regulations B.E. 2559 (2016)

Abstract

Thailand’s tourism industry has in the past flourished due to an uninterrupted growth market. As a result, there are more than 10,000 hotels operating across the Kingdom. This number includes hotels, serviced apartments, guesthouses, and hostels, and many more hotels are developing. These temporary accommodation facilities are considered to be “hotels” under the Hotel Act and are required to obtain a hotel license to operate.

More than 70 % of the hotel businesses in Thailand operate without hotel licenses. This is due to strict compliance requirements of the Hotel Act and the Building Control Act. Many existing hotels operate from converted old buildings, apartments, or condominiums and have been unable to modify their buildings to satisfy the requirements of the Building Control Act B.E. 2522 (1979). To rectify the problem, the Ministry of Interior issued a Ministerial Regulation Prescribing Descriptions of Other Types of Building Used for a Hotel Business Operation B.E. 2559 (2016) under the Building Control Act B.E. 2522 (1979), which came into effect on 17th August 2016. This is to emphasize the need for renovation / remodeling and legalization and applies to the unlicensed hotels that existed before 17th August B.E. 2559 to ensure legal conformity, sustainability and profitable business operations.

This study aimed to explore the legal issues involved in the Thailand Hotel Act, B.E. 2547 (2004) and the Building Control Act, B.E. 2522 (1979), in order to identify the renovations / remodeling required to bring small hotel businesses up to standard and enable registration as a hotel in accordance with the new Ministerial Regulation, B.E. 2559 (2016), and recommend a framework to legalize and license small hotel businesses.

In order to gain a better understanding of how to renovate and legalize a small hotel in Thailand, the research uses Ruamchitt Travelodge (RCT) as a case study in this thesis. RCT is a small hotel with 72 rooms located on Sukhumvit 10 Road, Bangkok. RCT has been operating without the requisite hotel license since 1987, and struggles with aging. It is clear that not only the legal implications need to be addressed, but a plan to improve on design is also necessary. Research was conducted through examination of RCT records and in-depth interviews with 8 hotel owners and hotel managers of small hotels in Sukhumvit area.

The first step is to check the existing building and its documents to determine whether it needs an upgrade and renovation/remodeling. This step is precipitated by the need for small hotels to meet the Building Control Act and Ministerial Regulation requirements. After the renovation work is done and the building usage has been changed to hotel, the next step is to file for an application for a hotel license.

After examining Ruamchitt Travelodge, it was found that the building does not require major structural modification, but it rather needs minor alterations regarding the safety requirements. In addition, an improvement on design would help give the hotel a new, fresh look. It is believed that this framework can be used as a guideline for other small hotels. There is a tension between the need to enforce the law and the desire to maintain a robust tourism industry. Many small hotel operators are willing to be legitimate; however, there is a need to liberalize restrictions applicable to these properties, and the current government has taken such step.

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