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New on Phuket in 2010, the Centara Grand on the shorefront at Karon beach

Phuket Room Tax to Raise Record 70m Baht

Monday, January 17, 2011
ABOUT 70 million baht is expected to be raised this year in the one-percent Phuket Provincial Administration Organisation tax on resort and guesthouse rooms.

The organisation's Chief Executive, Paiboon Upatising, says that about 60 million baht was raised from the tax last year. About 30 percent of the registered resorts declined to pay.

There were about 60,000 legal and illegal rooms in accommodation establishments on Phuket, but only 25,000 paid the tax, he said.

About 20 million baht from the tax covers road shows while the remainder goes for the provision of lifeguards on Phuket beaches - now expanded to all year not just low-season - for security cameras and other aspects connected with tourism safety and security.

Other forms of marketing Phuket apart from road shows also benefit.

''Establishments that don't pay need to be reassured that the tax is for the benefit of the whole community,'' Khun Paiboon said.

Resorts and guesthouses that do pay usually gain a better hearing when faced with problems, and they usually gain prime spots on road show trips.

Payments are usually made before the end of February.

The tax is also applied by the equivalent of the PPAO in Phang Nga, where a surprise increase to two percent without consultation has created a stir among resort managers.

The increase makes Phang Nga a more expensive place for resorts than Phuket and leaves resort managements asking questions about the marketing and tourism safety-security benefits. A meeting is scheduled for later this month.
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Comments

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Why not crack down on the illegal rooms and use this gain in tax revenue towards the growing environmental issues such as refuse removal. "30% of licensed rooms declined to pay??? how does this work, surely they must pay their taxes or face prosecution? I'm sure you will find that it is these unlicensed establishments that are the ones who are creating the larger % of the problems anyway and turning this beautiful Island into a rubbish tip!

Posted by Passionate About Phuket on January 17, 2011 10:18

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"About 20 million baht from the tax covers road shows"
Can this be explained a bit more clear?Would be nice to see some form of budget, so we can see what our money is spent for.

Posted by Hotel owner in Patong on January 17, 2011 13:26


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