The Hua Hin Provincial Court has banned short-term rentals under the 2004 Hotel Act which says violators can put in jail for up to 1 year and can be subject to a fine of up to THB20,000 as well as a daily fine of up to THB10,000, local media reports. This could make websites like Airbnb illegal in Thailand.
The court ordered that owners of condo units in a resort area of Hua Hin to pay fines worth almost THB30,000 for leasing them to Thai and foreign tourists on a short-term basis. The owners admitted to leasing the units illegally and received reduced penalties as part of an agreement, says Rutprathip Thamraphiphat, Chief of Hua Hin District, to the Bangkok Post. A 3rd case is still under investigation by the police.
The case involved units at Wan Wela Hua Hin Khao Tao condo. The owners were found to have been short-term letting their units in last December. It was during this time that the police were notified that units in the condo project were being promoted on social network sites for short-term rentals.
“The wrongdoers leased the units to Thai and foreign tourists, charging them at both daily and weekly rates, without licences,” says Rutprathip.
Wan Wela Hua Hin Khao Tao condo is located south of the Hua Hin city centre on a 20-rai land plot on Soi Hua Hin 101. The dispute initially began between the condo building’s management team and the unit owners last year. Building management claimed all rentals must be for at least 30 days in order to be legal.
According to Rutprathip, an estimated 90 per cent of owners at the project purchased their condo units in order to rent them out to tourists coming to Hua Hin. This market can be more profitable than traditional rentals.
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