Thai hotels warned over price gouging to boost government subsidies

Friday, 06 Dec, 2020 0

Tourism Authority of Thailand Gov. Yuthasak Supasorn says hotels are still price gouging and the government has vowed to crack down on the practice.

Yuthasak says it is not only a bad deal for guests but it is also defrauding the taxpayer.

Officials say many hotels raised room rates as soon as the ‘We Travel Together’ subsidised travel program was introduced.

The higher the room rate the higher the subsidy hoteliers can claim from the government.

When the program began in July, Tourism Minister Pipat Ratchakitprakarn said hotels guilty of price gouging would be excluded from any future tourism programs.

Officials say overpricing is still happening.

"Such cases are not difficult to investigate. If prices are increased from THB1,800 a night to THB7,500 it is obviously a crime, The subsidy money is from people’s taxes. Therefore we must together help to solve this crisis. Moreover, the room rates must be appropriate for both Thai and foreign tourists," said Yuthasak.

‘We Travel Together’ offers hotel rooms with up to 40% off subsidised by the government to stimulate travel.

Government officials are urging guests who believe they have been ripped off on price to report hotels to the Finance Ministry.

Written by Ray Montgomery, Asia Editor

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TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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