Phuket hotel levy proposal faces tourism recovery concerns
Phuket currently charges a 1% hotel maintenance fee, while a proposal has been made to raise it to 3% amid warnings that higher costs could affect tourism.
A proposal to raise Phuket’s hotel maintenance fee from 1% to 3% has drawn attention amid warnings that higher charges could add pressure to Thailand’s tourism recovery.
The Thai Hotels Association (THA) said hotel operators were already dealing with volatile energy prices and high travel costs. Its president, Thienprasit Chaiyapatranun, said Phuket currently levies a 1% rate, although there has also been a proposal to increase it to 3%.
The comments came as the Bangkok Metropolitan Administration considers a 3% tax on hotel and accommodation room charges. The THA has urged Bangkok to start with a rate of 0.5% to 1%, arguing that the full 3% rate could place too much of a burden on tourism businesses during a slowdown.
Under the 1997 Provincial Administrative Organization Act, provincial administrative organisations can collect a hotel maintenance fee of up to 3% of room rental charges from guests. Rates vary between provinces, with most authorities not applying the maximum rate, the association said.
Thienprasit warned that hotels could raise room prices to absorb any additional cost, potentially affecting tourism. He also called for tax revenue to be reinvested in hospitality and tourism, including hotel sustainability standards and marketing campaigns to attract visitors.
The THA also said higher taxes could widen the competitive gap between licensed hotels and illegal accommodation, which can avoid such levies.
