When the minimum daily wage for hotel workers nationwide leapt to 400 baht on Tuesday, not everyone was in a celebratory mood.
In the northeastern city of Khon Kaen, hotel owner Chatchai Kosawisut watched the announcement with a sinking feeling.
"It is not reform," he said, "it is punishment".
In his view, the cabinet's approval -- rubber-stamped by the Royal Gazette the same evening -- adds a fresh financial burden to businesses still reeling from two years of economic crisis.
"If the hotel cannot pay its staff, everyone loses their job. Is that really what the government wants?" asked Mr Chatchai, who is also chairman of the I-San Hotel Association.
One size fits none
From now on, all legally registered hotels with at least 50 rooms must pay workers a minimum of 400 baht per day, regardless of the province.
This requirement also applies to every hotel with conference facilities or entertainment venues, as well as all licensed entertainment outlets.
Bangkok's general minimum wage also rises from 372 baht to 400 baht for all sectors.
Elsewhere, however, provincial rates remain staggered: Khon Kaen's official floor for most sectors stays at 357 baht, and the deep southern provinces, including Narathiwat, Pattani and Yala, at just 337 baht.
The hotel-only uplift, critics argue, therefore hits the hospitality industry unevenly, penalising towns that rely on modest domestic trade rather than high-spending tourists.
"Room rates [in Khon Kaen] cannot match Phuket or Bangkok," Mr Chatchai explained.
His 180‑room property, the Kosa Hotel, survives on government meetings and corporate training sessions, both sharply curtailed since the pandemic.
"We host small conferences. We cannot charge 3,000 baht a night. When the wage goes up, there is no cushion," he said.
Jakkrit Siriphanich, chairman of the Khon Kaen Chamber of Commerce
Similar concern comes from Khon Kaen Chamber of Commerce chairman, Jakkrit Siriphanich.
He said hotel bookings in the province remain subdued, with both state agencies and private firms trimming meeting budgets.
"The law is the law; we will comply," he said. "But labour is our biggest cost. Owners are now meeting daily to identify cuts -- fewer staff, lower overheads, anything but higher room prices."
Raising wages, he noted, is almost impossible in the price‑sensitive Northeast, where even a 10‑baht increase triggers fierce competition.
Yet cutting staff is equally fraught.
"No hotelier wants to lay off workers," Mr Jakkrit said, "but if someone resigns, we may not replace them".
Machines cannot replace bell‑boys or housekeepers, and a two‑star property still needs reception cover around the clock.
Mr Jakkrit dismissed the notion that the new rule merely aligns Khon Kaen with richer provinces.
"If Bangkok or Phuket pays 400 baht, that fits their income. But imposing the same floor on two‑star hotels in non‑tourist towns is illogical," he said.
He questioned why provincial tripartite wage committees, which meet regularly to weigh local data, were overridden by a central order.
Government's rationale
Speaking after a cabinet meeting on Tuesday, deputy government spokeswoman Sasikarn Watthanachan said the policy would "improve the living conditions of more than 700,000 workers nationwide" and inject spending power into local economies.
The government argues that hotels and entertainment venues -- labour‑intensive sectors aligned with the tourism rebound -- are best placed to absorb higher wages.
The new 400‑baht floor, backed by the tripartite wage committee, was hailed as evidence of the administration's "commitment to social justice".
Federation of Thai SMEs president, Noppong Theeraworn, said the policy was "too fast and too harsh" for an economy he still labels fragile.
Small firms already struggle with limited capital and staff shortages, he said. Therefore, the sudden hotel‑only rise nationwide risks closures and off‑the‑books employment, he argued.
"Service and construction, which rely the most on labour, will bleed first," he warned.
From a national perspective, the move also unsettles larger hotel chains.
According to the Thai Hotels Association (THA), tourist arrivals from China, Malaysia and Russia have yet to recover. Safety concerns and global economic jitters weigh on bookings.
"Raw‑material and energy costs are up more than labour," said Thienprasit Chaiyapatranun, the THA president. "Adding 10–15% to payrolls in non‑tourist provinces piles on pressure when cash flow is already thin."
Critics, therefore, question the timing and selectivity of the measure. "Is it for the nation or for votes?" Mr Chatchai asked, as some hoteliers suspect the hike is a populist pitch to urban workers.
"If the motive is genuine -- raising living standards -- why target only hotels?" argued Mr Thienprasit.
A fair minimum wage, he said, should hinge on cost-of-living data and apply across sectors.
Pipat Lerksahakul, Chairman of the Federation of Thai Industries, Eastern Chapter Zone 2
Pipat Lerksahakul, chairman of the Federation of Thai Industries, Eastern Chapter Zone 2, and a member of Trat's minimum wage committee on the employers' side, has voiced strong opposition to the government's decision to raise the minimum daily wage to 400 baht.
He argues that the increase will heavily impact production costs, especially in the industrial sector, while benefiting politicians who use wage hikes to gain votes.
The council plans to petition the Election Commission to prohibit political parties from using wage increases as campaign tools.
Hotels caught in the middle
After the new minimum wage rule came into effect, the Ministry of Labour maintained that the hike would ripple forward, boosting domestic spending and easing inequality.
Thanusak Phungdet, President of the Andaman Provinces Chamber of Commerce, said, however, the 400-baht minimum wage increase brings both advantages and challenges.
"Wages are both a necessity and a burden in today's economy," Mr Thanusak said. "We must accept the government's decision, especially in provinces with stronger economies like Phuket."
He added that most workers in Phuket already earn near or above the new minimum.
"Those earning 400 baht must be mindful of their performance," Mr Thanusak noted. "Employers are under pressure. Without teamwork, they will suffer."
However, he warned the policy could hurt labour-intensive provinces such as Phetchaburi or other parts of the northeast.
"The government should offer adequate notice and support to help businesses prepare," he said.
Whether the 400-baht mandate becomes a stepping stone to inclusive growth or a stumbling block for regional recovery depends on the government's next move.
For now, operators are left balancing principle with practicality. As hotelier Mr Jakkrit put it: "You can legislate a wage, but you cannot legislate demand."
Thanusak Phungdet, President of the Andaman Provinces Chamber of Commerce