Bangkok, March 11th, 2025 – Thailand’s hotel industry is sounding the alarm over the rapid rise of “zero-dollar condos” and unregulated short-term room rentals on platforms like Airbnb, calling on the government to enforce stricter regulations and level the playing field. The Thai Hotels Association (THA) is leading the charge, urging mandatory registration for all short-term rental operators and tougher enforcement of existing laws to address what it calls unfair competition and growing security risks.
The controversy centers on condominium owners—many reportedly Chinese nationals—who purchase multiple units in popular tourist areas like Bangkok’s Sukhumvit district, Pattaya, and Phuket, then list them for daily or weekly rentals at cut-rate prices. Dubbed “zero-dollar condos” due to their rock-bottom rates, these rentals undercut licensed hotels, which face higher operational costs and regulatory hurdles. The practice has sparked outrage among hoteliers and local residents alike, who say it disrupts communities and flouts Thai law.
Under the Hotel Act of 2004, any property offering accommodation for less than 30 days must be licensed as a hotel—a requirement most condominiums fail to meet. Violators face fines of up to 20,000 baht (approximately $600 USD) plus an additional 10,000 baht per day until the activity ceases. Despite this, enforcement has been lax, allowing the short-term rental market to flourish. The THA estimates that of Thailand’s 1 million hotel rooms, half operate illegally, yet only a handful of cases have faced prosecution.
“This is a crisis for our industry,” said Surapong Techaruvichit, an adviser to the THA. “These unregulated rentals don’t pay taxes, don’t follow safety standards, and hurt legitimate businesses that sustain jobs and tourism. We need decisive action now.” The association has proposed invoking emergency powers under Section 44 of Thailand’s interim constitution to swiftly shut down non-registered operators, a move it believes could slash the number of illegal rentals.
The issue gained traction earlier this month when Deputy Government Spokesman Anukul Prueksanusak warned foreign investors—particularly Chinese nationals—against buying condos for short-term rentals, citing violations of the Hotel Act and condominium regulations. Residents in affected buildings have reported disturbances like noise, cannabis smoking, and property damage, often linked to tourists accessing units via digital lockboxes. “It’s a safety concern,” Anukul said, noting that the Ministry of Interior has ordered inspections of suspicious condos.
The “zero-dollar” moniker echoes a past tourism scam where foreign tour operators offered ultra-cheap packages, bypassing local businesses—a practice Thailand cracked down on years ago. Today’s condo rentals, however, are a decentralized challenge, fueled by platforms like Airbnb. While Airbnb remains legal for rentals exceeding 30 days, short-term listings in condos without hotel licenses are illegal, a distinction often ignored by hosts who operate under the radar.
Posts online reflect growing public frustration, with some calling it a “legal loophole” exploited by foreign capital, while others note the Thai Hotels Association’s renewed push for a crackdown as of March 10, 2025. Critics argue the government’s response has been too slow, pointing to a 2018 Hua Hin court ruling that fined two Airbnb hosts 13,000-15,000 baht for illegal rentals—a precedent rarely enforced since.
For residents like those in Sukhumvit, the influx of short-term tenants has turned once-quiet condos into de facto hotels. “We didn’t sign up to live in a tourist trap,” one complainant wrote online. The THA warns that without action, Thailand’s tourism reputation—built on regulated hospitality—could suffer.
The government has signaled intent to act, with the Department of Provincial Administration tasked with monitoring violations. Bangkok Metropolitan Administration spokesman Aekvarunyoo Amrapala confirmed reports of Chinese investors targeting key tourist zones, urging tighter oversight of online platforms. Yet, with thousands of listings still active, the scale of the challenge looms large.
As Thailand’s tourism rebounds post-COVID, the clash between traditional hotels and the gig economy intensifies.
