The Thai Hotels Association is vehemently opposed to a proposal to increase foreign ownership in condominiums to 75 per cent.
The Thai Hotels Association (THA) has openly criticised the government’s plan to allow foreigners to own up to 75% of condominium units. The Association fears the proposal could spark fierce price competition and disrupt the hotel market. ASEAN NOW reported that these concerns were raised during a recent meeting on key industry issues.
At the meeting, Thailand’s Minister of Tourism and Sports, Sermsak Pongpanich, outlined the country’s tourism direction and government policies to support the sector. He invited members to discuss their concerns and share their views openly.
One of the central issues raised at the meeting was the government’s consideration of increasing the foreign ownership limit in condominiums from 49 per cent to 75 per cent. THA believes this change poses a severe threat to its industry.
Tianprasert Chaipattananon, president of THA, said that the Ministry of Finance is preparing to propose the policy to the Cabinet. Chaipattananon expressed strong objections, arguing that increasing foreign ownership would allow condominiums to be rented daily, leading to direct competition with hotels and potential price wars.
The Association emphasised the difference in management costs between legally registered and unregistered hotels, noting that the former incur significantly higher costs. More than 40,000 hotels are registered on online travel agency (OTA) platforms, but only about 15,000 are legally registered. The rest, about 25 thousand, are operating without proper registration.
If the Cabinet approves the policy, many condominiums could be available for daily rentals in the market, increasing competition. There are also concerns that foreign nominee owners could utilise the remaining 25 per cent of properties, effectively circumventing the ownership restriction.
The meeting concluded with a strong call for the government to review the proposed policy in light of its potential negative impact on the hotel industry and broader economic implications. The Association emphasised the need for a balanced approach that supports foreign investment while ensuring the viability of local businesses.
The proposal to increase the foreign ownership limit in condominiums has provoked a strong reaction among the hotel industry and the wider Thai public. Many fear that this measure could lead to an excessive dependence of the property market on foreign capital and weaken the position of local investors.
It is worth noting that tourism is one of Thailand’s key industries, providing a significant portion of the country’s GDP and jobs. According to the Ministry of Tourism and Sports, nearly 40 million foreign tourists visited Thailand in 2019, generating more than US$60 billion in revenue.
However, the COVID-19 pandemic has seriously affected Thailand’s tourism industry. Foreign visitors fell by over 80 per cent in 2020, leading to massive hotel closures and job losses. Many experts believe the industry could take several years to recover.
In this context, the proposal to raise the foreign ownership limit in condominiums is an attempt to attract foreign investment and stimulate the economy. However, critics argue that the measure could have unintended consequences and hurt local businesses.
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