Phuket and Bangkok Condo Rentals Hamper Thailand’s Tourism Revival
A surge in illegal condominium rentals to tourists is alarming Thailand’s hospitality industry. Concerns range from disruptive guest behavior to weakened law enforcement and potential damage to the nation’s tourism recovery. Phuket and Bangkok are the epicenters of this problem, according to the Thai Hotels Association (THA), prompting calls for stricter regulations and visa policy reassessment.
The core issue stems from the conflict between the booming short-term rental market and the Hotel Act’s 30-day minimum rental period. Foreign and domestic investors are capitalizing on the tourism boom, converting residential units into de facto hotels, often circumventing regulations and disrupting residents. Recent news reports of unruly foreign tourists in Bangkok condos further fueled public concern and highlighted the consequences of this unchecked practice.
Thienprasit Chaiyapatranun, THA president, noted the problem’s prevalence in Phuket, where numerous luxury properties have been purchased by Russian investors. Similarly, in Bangkok, Chinese buyers are increasingly acquiring numerous condo units—even entire floors—and operating them as daily rentals. Mr. Chaiyapatranun cited instances of overcrowding, such as nine guests in two-bedroom units, disturbing neighbors and highlighting the ineffectiveness of juristic persons in addressing these violations.
While some developers lobby the government to increase the foreign ownership quota in condominiums beyond the current 49%, Mr. Chaiyapatranun advocates limiting the number of units a single foreign buyer can purchase. This, he suggests, would prevent bulk buying and the subsequent conversion of entire buildings into unregulated short-term rentals. Maintaining the existing quota, he argues, would distribute foreign demand more evenly, benefiting a wider range of developments.
Concerns extend beyond the hospitality sector. Sisdivachr Cheewarattanaporn, president of the Association of Thai Travel Agents (ATTA), voiced concerns about weak law enforcement and its damage to Thailand’s reputation. He expressed worry that some foreigners perceive Thailand as a place where laws can be circumvented with money. This perception, he argues, hinders Chinese tourism recovery, with daily arrivals currently around 10,000, significantly lower than the pre-pandemic average of 30,000.
Adding to the complexity are illegal foreign workers competing with locals. Mr. Cheewarattanaporn proposed reducing the 60-day visa-free period for citizens of 93 countries to 30 days, emphasizing that long-stay visa options remain for genuine long-term tourists. While the Tourism Authority of Thailand aims for 8–9 million Chinese tourists this year, ATTA predicts a more conservative 6.7 million, similar to 2024’s numbers, if safety and law enforcement concerns remain unaddressed.
This situation highlights the challenges Thailand faces navigating post-pandemic tourism resurgence. Balancing foreign investment and economic growth with protecting local communities and upholding the rule of law is a delicate balancing act. The ongoing debate necessitates comprehensive regulatory reform and robust enforcement to ensure the sustainability and integrity of Thailand’s vital tourism industry.
