Room for concern: Foreign investors in Thai property causes a stir
Tourist industry insiders voiced concerns about the amount of foreign investors snapping up hotels, pool villas, and luxury digs in Thailand’s bustling tourist hotspots like Phuket and Bangkok.
Thienprasit Chaiyapatranun, President of the Thai Hotels Association (THA), added his voice to the growing chorus of concern. He’s especially wary of Russian property owners flouting the rules by secretly renting out their pads on a daily basis.
In Bangkok, a new fad is sweeping the market: both Thai and foreign investors are securing entire condominium floors to cash in on the lucrative short-term rental game. Meanwhile, ambitious Chinese investors have nearly cornered the market on luxury housing developments, complete with shuttle services that make tourists feel instantly at home.
The THA isn’t taking this lying down. They’re pressing the government hard to clamp down on foreign ownership and reconsider visa stay durations to avoid fuelling economic inequalities.
On a related note, Sisdivachr Cheewarattanaporn, Thai Travel Agents Association chief, is calling for enhanced security checks to sift out bona fide tourists, underlining the need to uphold Thai laws.
In the wake of unsettling incidents, such as fraudulent call centres, he’s advocating for renewed measures to rekindle confidence among Chinese tourists, reported Pattaya News.
Late last year, concerns were raised among Thai hoteliers over the increasing use of Thai nominees by foreign businesses, which they fear may tarnish Thailand’s tourism reputation. The THA monthly sentiment index highlights this growing unease, especially as the high season begins.
THA President Thienprasit revealed that nearly half of Thailand’s hotels express apprehension about illegal foreign investments, particularly from Chinese entrepreneurs. This sentiment was reflected in the hotel operator business sentiment index for October.
Thailand is currently seeing a daily influx of around 10,000 Chinese holidaymakers, with eyes on pushing that figure to a whopping 6.7 million by 2025, mimicking the figures forecasted for 2024. Industry insiders are wondering whether Thailand can balance the boom with vigilance. Time will tell.
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