On June 28, 2024, Thailand’s Ministry of Interior issued the Ministerial Regulation Re: Exemption from the Government Fee for Hotel Business Operators B.E. 2567 (2024). The ministerial regulation, which was published in the Government Gazette on June 30, 2024, lifts the annual government fee for hotel business operations from July 1, 2024, to June 30, 2026. This extends the previous annual fee exemption period, which had been set to expire on June 30, 2024, in accordance with similar ministerial regulations in 2022. This measure aims to alleviate the financial burden on hotel business operators that may be affected by insufficient tourist revenue. For more information on this exemption, or on any aspect of Thailand’s legal and regulatory environment for hotel business operations, please contact Chaiwat Keratisuthisathorn at [email protected] or Chanchai Jhongsathit at [email protected].

As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2023. This guide outlines the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Country Guides series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource for planning international business strategy and researching new markets. The full Guide to Doing Business in Thailand is available through the button below.

On November 6, 2023, Thailand’s Department of Lands issued a circular letter clarifying that the use of units in condominium buildings for hotel business operations is not allowed. Circular Letter No. Mor Tor 0517.3/Wor 23302, which was sent to all provincial governors in Thailand, explains this by emphasizing that although the Condominium Act (No. 4) B.E. 2551 (2008) rules that some condominium units can be used for commercial operations purposes, the term “commercial operations” does not include hotel business operations. This is in accordance with the Condominium Act’s primary aim of safeguarding the rights of condominium unit owners for residential purposes rather than for the purpose of commercial or hotel business operations. The circular letter also references Opinion of the Council of State No. 710/2550, which specifies that the commercial operations allowed under the Condominium Act are those providing services to the co-owners of a condominium building (e.g., convenience stores and restaurants) and further specifies that these commercial condominium unit areas must have separate exits and entrances that do not disturb the residents of the condominium building. In light of these considerations, using a condominium building for hotel business operations is not permissible, regardless of whether consent is obtained from the co-owners of the condominium building or whether the condominium building’s purpose is changed from residential to hotel purposes (whether in whole or in part). To use a condominium building for hotel business operations, the building owner would have to first cancel the condominium building’s registration under the Condominium Act so that it is no longer regarded as a condominium building. Then it can be used for hotel business operations, provided that the building and business operator comply with the requirements under the hotel law and other relevant laws and regulations (e.g., Building Control Act, Town and Country Planning