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Illegal Hotels Set for Amnesty or Shame

Illegal Hotels Set for Amnesty or Shame

Sunday, October 16, 2011
PHUKET: More than 400 resorts and hotels operating illegally on Phuket are likely to be offered an amnesty . . . and those that do not come in from the cold to pay taxes and obey laws will face naming and shaming.

Latest figures reveal that 61.12 percent of Phuket's 702 resorts and hotels are illegal. That's a massive 429 establishments operating beyond the law on Phuket - a tally that does not include the condominium and apartment blocks passing themselves off as hotels.

Phuket Governor Tri Augkaradacha told Phuketwan this week that he is planning to suggest the amnesty idea to authorities in Bangkok. The names of the illegal establishments are all known, so the Phuket Chamber of Commerce could, after the amnesty deadline passes, list all the legal and illegal venues, as Secretary-General Dr Sirichai Silpa-Ar-Cha is now suggesting.

Bringing Phuket's reluctant resorts within the law is just one of several steps required to improve Phuket's reputation as a safe and environmentally-aware international destination.

Tourism Authority of Thailand Phuket regional director Bangornrat Shinaprayoon says: ''We have the names of the illegal establishments and the TAT won't support anything they do. When it comes to international marketing, the legal resorts and hotels on Phuket have our full support.

''The ones that pay their taxes deserve the better opportunities.

''In the long term, if Phuket wishes to be seen as a quality destination for quality tourists, the island cannot afford to have its reputation ruined by illegal operators who fail to conform to safety standards and who fail to protect the environment.''

The numbers for Phuket are alarming. Only 273 of the 702 resorts and hotels are legal, and of the total of 42,684 rooms available on Phuket, only 28,972 rooms are approved.

Phuket's Governor Tri says some resorts and hotels are on public land, making it difficult for them to ever become legal.

''This is one reason why it's difficult to solve this problem.'' Whether resorts erected illegally on public land would be part of any amnesty would be a difficult decision for Bangkok authorities to make in view of the encouragement it would seem to be to encroachers.

Other resorts and hotels may feel confident to register with their local council if it's a matter of avoiding exposure and conforming to safety, engineering and environmental standards. However, some of the abuses have been continuing for 20 years - and the older Phuket establishments may have problems meeting requirements.

Those that do not change are not likely to survive without conforming. An amnesty that sorted the repentant resorts from the recidivists would be a step in the right direction.

In the near future, the Phuket Chamber of Commerce list of legal and illegal establishments seems likely to become essential reading for all people considering a visit to Phuket.
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Comments

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This is a very bad signal to send ... approving something or somebody that does not follow the law.
The illegal hotels etc chose not to be a part of the society and pay their part, just wanting to reap the benefit the society provide and the profits they can generate without sharing.....No ... since they are well known to the Governor then he should immediately share this information with the revenue department and any other department or part of society that is being cheated on and these department should do their work...if there is knowledge of Hotels being erected illegally .. then have them demolished... not doing anything is just an open invitation not to follow any law.

Posted by Bjarne on October 16, 2011 11:28

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Why giving an amnesty to rogue hotels?
Why not ordering audits about tax evasions by the Revenue Department with heavy penalties for law-breakers?
Greedy business-people are alltime the winners in Thailand at the expenses of legally registered hotels.

Posted by Whistle-Blower on October 16, 2011 11:59

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Why doesn't the TAT report all illegal hotels/resorts to TripAdvisor and request their listings be removed. Many of these illegal hotels get the majority of their bookings directly through TripAdvisor into foreign bank accounts - the money never even enters the country and no taxes are paid. TripAdvisor has a good reputation and I am sure would want to protect it by not listing illegal properties.

Posted by Tyler on October 16, 2011 16:45

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The more I read about the antics of illegal business here in Phuket the more I laugh.

So... the Gov and authorities know who they are but do nothing but ask BKK "Please can we do anything about it?"

Just another prime example of people being allowed to break the law and shove money money in their own pockets.

Would be interesting to know how much these so call illegal hotels pay under the table each month to avoid the tax.

One of these days I'm going to pen a book... It'll be the best comedy you've ever read.

Posted by Graham on October 16, 2011 17:31

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This whole article and the way the people interviewed reason with themselves is just tragi-comic..Its energy sapping and makes me not want to hear a word from the Governor ever again. I understand that its not easy to control corruption, but when a Governor gets the information thrown in his face like this and he starts some meandering talk about "amnesty" and "difficulties" I lose all hope.
How about arresting the owners, put them away for 10-20 years in prison, fine and back tax them to hell, confiscate the ILLEGAL properties? And then, if they after a thorough check a deemed to have followed safety regulations auction them out to the public. And, in the case of resorts or hotels being built on public land they should without exception be knocked down.
I find it ridiculous that these measures I describe would raise even an eyebrow.

Posted by christian on October 16, 2011 18:34

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Why does the TAT not have a list on their web site now giving the names of the 273 LEGAL & SAFE resorts & hotels on phuket and why are they not promoting them hard, surely they have a duty of care for the tourists they wish to visit phuket. I'm totally shocked at these numbers and they have known about it and done nothing for how long, people could have and may well have been injured or killed in these illegal hotels & resorts and none but few would know if it was an illegal or legal firetrap do any of these illegal joints have insurance to cover paying guests I'm betting not.TAT better hope this info isn't in the hands of the European, American & even Aussie travel shows, they will rip them a new one .
I ask you How many people do you know that contact a foreign chamber of commerce before going on their hard earned hols to find out the legal from the illegal hotels?

Posted by Scunner on October 16, 2011 19:24

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if they are operating illegally just go in and lock the gates, they will soon pay or register, or they are probably already paying somewhere.

Posted by Michael on October 16, 2011 21:38

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My concern is that, most tourists when going on holiday take out travel insurance, to cover themselves for loss of personnel items or god forbids personnel injury when on holiday. If someone is injured in one of these illegal hotels or resorts will their insurance company cover them or do they have the right to refuse insurance because the resort or hotel does not follow the guidelines of the hotel association of Thailand (or Thailand equivalent). Would the tourist and or the insurance company have the right to sue the hotel and or Resort company to recoup any costs and expenses that would be incurred if hospitalisation and or death results. Point in question the poor Australian individual that fell from a balcony that had been suggested was constructed at a low height.

Posted by terry on October 17, 2011 10:37

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@Terry: Unfortunately insurance companies don't cover hotel personnel whilst on holiday. You can however take out personal insurance.

Posted by Pete on October 17, 2011 11:24

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The travel agencies promoting & selling these illegal properties should also be fined.
Most of the illegal hotels are being sold openly by travel agent's websites (just look on the total number of Phuket Hotels displayed on a popular website like Agoda.com - 715 hotels, most of them must therefore be illegal).

These websites are allowing illegal hotels to display their information & making profit by selling these hotels. Aren't they also breaking the law?

They contribute to the current price dumping in Phuket, by stirring up a competition between legal & illegal hotels, putting legal hotels in a weaker position as they most likely have to spend more money to comply with safety regulations.

And in contrast to traditional travel agents who are conducting regular safety inspections & require valid hotel registrations, these websites are just looking for a fast profit without taking any responsibility for the product their are selling to their customers.

It should be much easier to get illegally operating hotels to comply with the law, if the internet as their major sales channel is unavailable to them. Most hotels will get a registration & operating license if their business suffers otherwise. Internet is hugely popular and most of the small hotels & guesthouses are depending almost entirely on the bookings through the internet.

Posted by Anonymous on October 17, 2011 11:48

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What about the "underground" hotels that don't even advertise themselves as being hotels and don't have signs up? I personally know of 2 in Patong Beach. I always stay there now, and pay a price less than one third of what you would expect to pay in a hotel of that level of comfort. I was introduced to one by a close Thai friend whose friends runs it, on condition that I not tell any other foreigner about it. Staying there for 2 months, I never saw any other foreigner staying there - only Thais and (for some reason) Malaysians. But it is not a guesthouse or apartment, definitely a hotel. The hotel is extremely well-appointed and comfortable with great facilities and would be rated as a solid 4 star. From the street, it looks like a nondescript building with no signs anywhere. I respected my friend's strong request to keep this hotel a secret. I believe that its rooms would rent for 4000 baht+ if it was registered. I pay around a third of that whenever I stay in Patong. I bet no other foreigners in Phuket even have any idea that this hotel exists. Privileges of having a good Thai friend, I guess...

Posted by Phil on October 17, 2011 11:59


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