Hotel operators are pushing for a tax deduction or subsidy for renovation investment, especially for green energy, while the Tourism Authority of Thailand (TAT) suggests hotels in second-tier cities install electric vehicle (EV) chargers to accommodate the growing trend of travel via EVs.
With the Thai Hotels Association (THA) scheduled to meet the finance minister soon, THA president Thienprasit Chaiyapatranun said the group would ask for financial stimulus, focusing on enhancing the competitiveness of licensed hotels in Thailand.
Amid fierce competition from illegal rooms converted from new condo units, Mr Thienprasit said mid-scale hotels that have operated for many years are most at risk.
He said this segment does not have enough cash flow to renovate because it has not fully recovered from the pandemic, unlike five-star accommodation.
Mr Thienprasit said in 2020 the Finance Ministry introduced tax measures to cushion the impact of the pandemic by allowing hotels to use 1.5 times the amount of expenses from the extension or renovation of buildings as a deduction in their tax calculations.
That measure helped many hotels to revive their business, allowing them to compete with upgraded products and prices, he said.
Mr Thienprasit said the ministry should adopt a similar scheme to let hotel operators, particularly those that are smaller scale, repair and renovate their buildings, which would enhance the experience of tourists visiting Thailand.
The Tourism Authority of Thailand suggests hotels in second-tier cities install electric vehicle (EV) chargers to accommodate the growing trend of travel via EVs. Wichan Charoenkiatpakul
Somradee Chitchong, deputy governor for domestic marketing at TAT, said if tax deductions for hotels include the installation of EV chargers, it would fit the agency's plan to increase domestic trips by EV owners.
She said more charging stations at hotels would facilitate EV drivers, encouraging them to venture out to new destinations apart from major provinces, as one of their concerns is finding charging stations.
While domestic airfares remain relatively high, the EV market has been growing thanks to the government's subsidy scheme providing up to 100,000 baht per vehicle purchase.
Marisa Sukosol Nunbhakdi, the former president of THA, said hoteliers would like the ministry to consider the calculation of the land and building tax.
She said the current rate is based on the land appraisal value, which consistently rises every year, while hotel revenues have fluctuated since the pandemic.
Mrs Marisa said small and medium-sized hotels in top locations such as Bangkok are struggling as they face price competition from direct rivals as well as condo owners who illegally list rooms for daily bookings.