Thailand To Replace Hotel Act Amid Changing Tourism Trends In 2025

The Thai government is preparing to reform its hospitality laws, with the Council of State drafting a new Accommodation Act to replace the outdated Hotel Act of 1994. This initiative aims to modernize the legal framework, reflect the diversity of today’s tourism industry, and position Thailand as a competitive and sustainable destination.

The Purpose Behind Thailand’s New Accommodation Act

According to a report from the Government House, the Hotel Act of 1994 is no longer suited to the realities of modern travel, which has expanded beyond traditional mass tourism. Travelers are now seeking more specialized experiences, including luxury stays, medical and wellness retreats, and solo exploration.

This change in demand is accompanied by a growing emphasis on responsible tourism, where environmental, cultural, and community impacts influence how people choose to travel. In response, the new draft legislation is designed to create a framework that can support both established hotels and emerging business models such as hostels, homestays, and sharing economy services.

To achieve this, the draft expands the definition of accommodation to include tents, rafts, and eco-lodges, and introduces a tiered system that allows small operators to register through a simplified notification process rather than a full licensing procedure, lowering barriers for family-run and rural businesses.

In addition to redefining accommodation and easing registration, the government expects the reforms to increase revenue while making tourism more inclusive. By regulating platforms such as Airbnb, authorities aim to capture tax income worth billions of baht that is currently uncollected.

Key Features of The Proposed Accommodation Act

The Accommodation Act presents a series of reforms intended to balance industry growth with accountability and adapt regulations to the realities of modern tourism:

• Redefining Accommodation: Under the existing law, the limited definition of a “hotel” excludes many modern lodging options, such as homestays, tents, and treehouses. As a result, small-scale operators often fall outside the legal framework and operate in a gray area. The draft legislation will provide clear definitions for both “hotel” and “accommodation,” allowing a broader range of lodging types to be formally recognized.
• Tailored Regulations: The new framework will move away from a "one-size-fits-all" model to offer greater flexibility, particularly for small businesses. Low-risk operators will be able to comply through a simplified notification or registration process instead of a full licensing procedure. Standards will also be adjusted so that smaller accommodations are not subject to the same requirements as large hotels.
• Facilitating Business: The government will streamline operations through measures such as an electronic system for guest registration and licence applications. It will also create a new “Super Licence,” allowing one licence to cover multiple activities and reducing the administrative burden on business owners.
• Digital Platform Regulation: Digital booking platforms such as Agoda, Airbnb, and Booking.com will be regulated to protect consumers, create a fairer competitive environment between small and large operators, and bring previously unregulated accommodations into the formal system.
• Promoting the Industry: A "Committee for the Promotion of Accommodation Business” will be established to set industry-wide guidelines. The Ministry of Tourism and Sports will serve as the lead agency, responsible for developing policies that support growth across the sector.
• Fairer Penalties: The enforcement approach will prioritize compliance over punishment. Penalties will be scaled to match the severity of offences, reducing reliance on criminal charges for minor violations.

Potential Benefits and Considerations of the Accommodation Act

The government is insistent that the Accommodation Act will support sustainable and responsible tourism by aligning economic opportunities with community and environmental safeguards. Among the expected outcomes are the legalization and fair taxation of short-term rentals, the integration of small-scale operators into the formal economy, and the adoption of digital systems to improve transparency. The planned Super Licence will also reduce administrative burdens and encourage investment in properties offering multiple services.

However, the Thai Hotels Association remains cautious and warns that weaker oversight could compromise fire, health, and safety standards, and licensed hotels fear that budget accommodations operating under lighter regulations could distort competition and destabilize the market. Meanwhile, in rural areas, inconsistent tax collection remains a challenge, raising doubts about whether revenue targets will be met.

As tourism is a cornerstone of Thailand’s economy and contributes a large share of the National GDP, the stakes of the new draft legislation are high. With effective enforcement, the Accommodation Act has the potential to boost revenues, support local businesses, and maintain Thailand’s competitiveness in the region. Conversely, if the Act is implemented poorly, it could put safety standards at risk and weaken traveler trust.

What This Could Mean For Thailand’s Tourism Industry

Thailand’s decision to replace the Hotel Act of 1994 with a new Accommodation Act marks an important reform for the tourism sector. The legislation signals a future in which accommodation options are more varied, more effectively regulated, and better aligned with the realities of modern travel.

For visitors, the reform promises safer and more diverse choices, and for operators, it offers clearer rules, streamlined procedures, and fairer access to the market. At the same time, the balance between flexibility for small-scale operators and safeguards to uphold standards will be critical in determining how well the law serves both travelers and businesses.

Beyond the regulations, the Accommodation Act highlights Thailand’s commitment to evolving with global tourism trends and reinforcing its position as a leading destination in Southeast Asia.