Thailand’s hotel industry is turning up the pressure on the government to clamp down on unlicensed short-term rentals, arguing that thousands of condominium units listed on Airbnb and similar platforms are operating outside the law.
The Thai Hotels Association (THA) has called for amendments to the Hotel Act B.E. 2547 (2004) and tighter enforcement to prevent what it describes as ‘unfair competition’ from unregulated condo rentals. The association is also lobbying for stricter oversight of booking platforms, which it says should be held responsible for ensuring listings are legal.
At the same time, economists and tourism experts are warning that blanket restrictions could backfire by pushing visitors away, discouraging small-scale entrepreneurship and hurting local economies that benefit from alternative accommodation options.
The debate is now shaping what could become Thailand’s most significant tourism policy reform in years.
What the Hotel Industry Wants
The THA’s message is clear: daily rentals in condominiums remain illegal under the Hotel Act and should be strictly enforced until clear reforms are introduced. The group argues that hotels are subject to stringent licensing, fire safety, insurance and tax rules, while many short-term rentals face none of these obligations.
Their main demands include:
- Amending the Hotel Act to reaffirm that condominiums cannot be rented daily
- Imposing platform accountability, requiring Airbnb, Booking.com and others to verify registration numbers or delist unlicensed units
- Coordinated nationwide enforcement so that all provinces follow the same standards
- Penalties for hosts and developers who market residential properties for illegal short-term use
In statements reported by Nation Thailand and Bangkok Post, THA representatives said illegal rentals distort competition, undermine consumer protection and damage the reputation of legitimate operators. They have urged authorities to act quickly before the market becomes ‘impossible to control.’
Enforcement Strengthens — But Legal Reform Is Underway
The government has already responded with renewed enforcement. The Department of Provincial Administration (DOPA) and local officials have carried out raids in Bangkok and Phuket, targeting daily condo rentals and confiscating electronic key boxes used to facilitate short-term stays.
Violators face fines of THB 20,000 plus THB 10,000 per day until the activity stops. Several condominium juristic persons have also been warned they could be held responsible if they allow ongoing violations within their buildings.
However, while enforcement has increased, policymakers acknowledge that the current legal framework — written more than twenty years ago — no longer reflects today’s tourism reality.
Officials have confirmed that coordinated inspections will continue through the 2025–26 high season, focusing on unlicensed short-term rentals in Bangkok, Phuket and Chiang Mai.
In 2023, the Ministry of Interior updated the Hotel Act’s implementing regulations, increasing the exemption threshold from four rooms and 20 guests to eight rooms and 30 guests, provided the accommodation is personally managed and not operated commercially. However, most condominiums still do not qualify under this exemption.
A draft Accommodation Act is currently under review but has not yet been passed or published in full. It is expected to modernise the rules if and when enacted. It proposes a tiered registration system that would distinguish between hotels, serviced apartments, homestays and small-scale private rentals. The bill would also formalise the role of online platforms, requiring them to display registration details and share data with regulators.
Despite the legal uncertainty, Thailand remains one of Airbnb’s fastest-growing markets, with long-haul bookings up nearly 40 % year-on-year in 2024. The contrast between strong global demand and outdated local laws underscores why reform is so widely discussed.
If passed, the law could create a pathway for responsible hosts to operate legally — something Thailand’s short-term rental sector has long lacked.
The Case for Balanced Reform
Not everyone agrees with the hotel lobby’s hard line. The Thailand Development Research Institute (TDRI), an independent policy think tank, has urged the government to pursue a balanced approach that recognises the economic value of short-term rentals.
TDRI argues that legalising and registering small-scale operators would make it easier to collect taxes, improve safety standards and spread tourism income beyond major hotels. A dual-tier system — national registration with local oversight — would bring clarity without overburdening small hosts.
International development partners, including the , have also recommended integrating the short-term rental economy into Thailand’s formal tourism framework rather than pushing it underground.
As digital platforms continue to reshape global travel, Thailand’s challenge is to find a regulatory model that ensures fairness, accountability and innovation — not exclusion.
Platform Responsibility Comes into Focus
Globally, many governments now require platforms to verify host registration numbers or remove illegal listings. Spain, Portugal and Japan have all introduced such measures, arguing that platforms are part of the regulatory chain.
Thailand’s proposed reform mirrors this direction. If enacted, platforms like Airbnb and Booking.com would need to verify that each listing complies with national and local requirements. This could significantly reduce illegal operations but would also force greater transparency across the market.
While hotels welcome the idea, many hosts worry that poorly designed systems could block legitimate operators or make compliance too costly. The key, experts say, will be to create simple, accessible registration processes that small property owners can realistically follow.
What This Means for Condo Owners and Hosts
For now, the Hotel Act B.E. 2547 (2004) remains in full effect, meaning that daily rentals in condominiums are still illegal unless the building holds a hotel licence or qualifies for an exemption.
Under a 2023 ministerial amendment, that exemption now extends to small-scale private properties with no more than eight rooms and 30 guests, provided the accommodation is personally managed and not operated as a commercial hotel business. Most condominium units still fall outside this definition.
While policymakers continue to debate reform through the draft Accommodation Act, no final law has yet been passed. Even if the legislation progresses, implementation could take time.
In the meantime, property owners should:
- Maintain 30-day minimum stays unless clearly eligible for an exemption
- Declare rental income properly and keep accurate financial records
- Ensure guest safety compliance, including basic fire and insurance standards
- Monitor updates from the Ministry of Interior and Revenue Department
Enforcement is ongoing, particularly in major tourist destinations such as Bangkok, Phuket and Chiang Mai, where authorities continue to issue fines and warnings to unlicensed operators.
The Bottom Line
The hotel industry’s campaign has reignited Thailand’s debate over how to regulate short-term rentals. Whether the outcome favours fair competition or tighter restrictions will depend on how the draft Accommodation Act evolves and how long it takes to pass.
For now, reform remains uncertain, but compliance is not. Owners who stay informed, follow the law and prepare for eventual registration requirements will be best placed to benefit once new rules are formalised.
For expert advice on licensing, exemptions and rental taxation, book a call with the Rental Tax Thailand team today.
