Cheaper Hotel Rates Likely To Rise

[PeterRS]

The daily minimum wage in Thai hotels is set to rise to Bt. 400 from July 1st. This was mandated by the government near the end of last year. As a pilot project, five star hotels in most Provinces were selected and have already hiked their wage rates twice to achieve the Bt. 400 minimum. Last year Chiang Mai hotels had a Bt. 350 minimum wage. The new rate has increased labour costs by more than 12%.

From next week, though, two-star hotels or higher and those with more than 50 rooms must also start complying with the new minimum wage rate. During the high season, payrolls generally in high-end hotels typically account for 35%-45% of all costs. Suksit Suvunditkul, president of the southern chapter of the Thai Hotels Association (THA) said these could rise to 50% during the low season.

For lower end hotels, the likely outcome will be a reduction in the number of staff employed with an emphasis on recruitment of more multi-skilled staff. However, with hotels being particularly hard hit in this particular low season with tourism numbers from China and India significantly down, the THA is pressing the government to postpone the increase.

What is not mentioned in the attached article is that room prices in lower-end hotels are almost certain to rise and some hotels may end up closing down.

https://www.bangkokpost.com/business/general/3056397/new-minimum-wage-to-lead-to-hotel-layoffs

[floridarob]

1 hour ago, PeterRS said:

During the high season, payrolls generally in high-end hotels typically account for 35%-45% of all costs

I find this number very difficult to believe.....

[Tomtravel]

I spoke with someone in 5* international chain and even they apply „creative application of the labour code“..

[Slut1215]

It’s all about creativity 

[vinapu]

6 hours ago, Slut1215 said:

It’s all about creativity 

Yes, some companies pretend to pay and their employees in turn pretend to work.