Speaking at an event at Ley Phang Beach, where Anutin claimed victory in reclaiming beachfront land from illegal encroachers, the Deputy PM announced the results of the crackdown on influential people and the results of inspections of service establishments and hotels in Phuket.
It was found that rooms are provided on a daily basis in the style of a hotel, but 19 such locations, totaling more than 800 guest rooms, operated without a hotel license, said an official report of Anutin’s announcement.
Anutin said he became aware of the illegal hotels through information provided by the Kathu District Office, saying that many of the illegal hotels were located in the Malin Plaza area in Patong, as well as other areas in Kathu District.
Anutin said that the policy of himself and Deputy Minister of Interior Chada Thaiseth was “to emphasise policies to organise society and suppress influential people” said the official report.
Therefore, he ordered the Department of Provincial Administration (DOPA), described as as “an agency with a mission to maintain peace and order and security within the country”, under the direction of DOPA Director-General Orasit Samphantarat to conduct a fact check on the information provided and proceed to investigate with the intent of revealing offenses related to business operations by foreigners who did not follow the law in Phuket , said the report.
It was found that there were establishments that advertised and opened daily rooms in the style of hotels. The businesses collected room rent on a daily basis, but had no hotel business license, Anutin said.
“And the owner/administrator, most of them are foreigners. The inspection found 19 targets, totaling more than 800 rooms,” he said.
Officials had been tasked with proceeding with the investigation in order to press charges against offenders, he said.
The investigating officers comprised officials from the Drug Suppression and Peacekeeping Operations Team (DOPA Force), the Department of Provincial Administration, Phuket Provincial Office. Kathu District Office, Phuket Provincial Police, Patong Police Station as well as officials from the Phuket Provincial Public Works and Town & Country Planning Office and from the Phuket Provincial Revenue Office, he added.
The official report of his announcement marked that illegally operating a hotel without a licence was punishable under Section 15 and Section 59 of the Hotel Act, B.E. 2004. If found guilty, the offender faces up to one year in jail or a fine of up to B20,000, or both ‒ and a daily fine of up to B15,000 throughout the period that the violation has continued.
“The actions of operators in this manner affect Thailand in various ways, whether it is safety and hygiene for the people who use the service, and the safety of the building that may have been altered without permission,” Anutin said.
“And in the economic aspect, there may be tax evasion and activities related to money laundering by foreign capital groups,” he added.
“In addition, some illegal foreign investor groups have monopolistic behaviour in attracting foreign tourists from the same nation to stay. This will affect local operators and operators with legal licences.
“The Department of Provincial Administration has therefore integrated with relevant agencies to arrest illegal offenders, including in matters such as building modifications and building misuse, tax evasion and money laundering,” he concluded.
A SOFTER APPROACH
While Anutin was speaking to the media at Lay Phang, Deputy Minister of Interior Chada Thaised and his entourage travelled to Patong in person to explain the investigations there.
Mr Chada explained that the investigations were launched following complaints submitted by Kathu District Chief Theeraphong Chuaychu.
In total, 21 properties were under investigation for operating without a licence, but only two were deemed to be “owned” by foreigners and managed by Thai people, Mr Chada said.
A key concern was work such as converting a commercial building into a hotel to provide services to the public, namely tourists, Mr Chada said.
Mr Chada also pointed out that a softer approach was being taken than Antunin was alluding to while speaking to the press at Ley Phang.
“We talked and understood with establishment owners and administrators In order to proceed according to the law correctly. Initially, wrongdoing was found. Therefore, comparisons and fines have been carried out according to the law along with recommendations to business owners to proceed correctly by contacting and enquiring with the local administrative organisation [Patong Municipality] and the Kathu District Office to find a solution together,” Mr Chada said.
“Operating a hotel business without a licence affects business operators who operate legally. They are robbed of their jobs and careers. In addition, illegal hotels may not have a security system. If there is a fire or incident in the hotel, tourists staying may not receive security protection and various rights of care and assistance,” he added.
“While visiting the area this time, we listened to opinions from business operators who have been stuck with problems regarding requesting a licence or being able to legally operate correctly. This information will be used to find solutions to solve problems together so that everyone can operate under the same law,” Mr Chada noted.
“The Ministry of Interior has a plan to fix this. The overall city plan is modernised to keep up with the expansion of the economy and the context of the country,” he said.
Mr Chada’s closing remarks tacitly admitted the ongoing issues local guest accommodation operators in Phuket have had in being able to legally register as hotels.
Gen Anupong Paochinda, Minister of Interior at the time, on June 7 last year issued the required ministerial regulation change to allow small guest accommodation venues ‒ namely “boutique hotels” ‒ to be legally registered as hotels, as long as they complied with safety requirements.
The ministerial regulation change came into effect on June 20 last year.
Tourism Council of Thailand (TCT) President Chamnan Srisawat himself was in Phuket in June last year to head a two-day ‘SME Restart’ event, promoting the fact that small hotels could be finally register as legally recognised hotels.
However, Phuket remained the only province in the country where the bureaucratic mechanisms were not in place to allow small and boutique hotels to register to become legally recognised as hotels under the law.
The unexplained delay in Phuket officials allowing small hotels to register resulted in a delegation representing small hotel owners in Phuket appealing to the Senate for help in September last year.
Only in February this year did Kathu District Office finally have an online system through which operators could register to have their small accommodation venues legally registered as hotels.
Yet despite even that announcement, Wirintra Paphakityotphat, head of the Tourism Council of Thailand (TCT) Region 11 branch, which represents Phuket, Phang Nga and Krabi, still had to include in a special request to Prime Minister Srettha Thavisin during his visit to Phuket only last month for the central government to provide assistance to small hotels, pending follow-up and approval, concerning the determination of areas and environmental protection measures within Phuket by the end of April, as per a draft announcement from the Ministry of Natural Resources and Environment.