The illegal hotel business is booming in Phuket, Thailand. This poses a great threat to groups such as the Thai Hotels Association, who view this as an encroachment upon their business. The Hotel and Land Tax Act is cited, stating that subletting incurs liability under the aforementioned Act.
The taxes in accordance with this Housing Tax would be due to localities, as opposed to revenue authorities, meaning that this business represents a huge loss for small and local businesses.
Despite all of these moral and political implications, the issue still rages on. Today, AirBNB boasts over 300 accommodation listings in the city, compared to 376 tax-paying registered hotels. However, the prevalence of the problem hasn’t gone unnoted by local tourism offices, who are introducing legislation to target the problem.
Read the full article here: Illegal Phuket hotels open as usual