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Airbnb a New Source of ROI for Thailand’s Condo Owners in 2019

Airbnb a New Source of ROI for Thailand’s Condo Owners in 2019

According to the most recent statistics. Out of all the 36 million travelers in Thailand, almost a million visitors used Airbnb to book rooms during the year 2018. The firm recorded a bewildering 177 percent development in the area. Malaysia and Thailand turned out to be especially well known with inbound voyagers and their use of Airbnb.

Digital Hospitality, Gaining More Ground

Despite the governments’ proposed regulations and restrictions. Still these localized technology based hospitality services are on the rise, As after all it’s always a battle between the conventional systems v.s the modern day technological advancements and the trend shows the sooner the technological advancements are accepted the better it is for the overall society growth and prosperity.

And now it’s not only Airbnb’s monopoly. Many other competitors are also making their ground. Some of the local Thai companies, as well as some Chinese & Singaporean companies, registered, based and operating in Thailand, are also having contracts signed with the developers of the condominium projects and with hospitality management companies. They are all through various channels are providing the same sort of services. All contributing and trying to cope up with the rising rental demand due to the tourism boom in Southeast Asia. The most notable among the rising competitors are Locals, Funkey, LVYUE, and OSTAY etc.

Sense of Belonging, Socially More Interactive

The popularity and fast adaptation of this modern hospitality service is not only the result of its convenience and ease but also due to sentimental reasons. As traveling evolves both in Southeast Asia and internationally, it wants to find new ways to simplify how plans are made.

At the moment, people have to go to lots of different places to research and book different elements of their trip. From flights, accommodation, and then what to do when they reach their destination?

Whether it’s young people wanting to meet travelers from around the world and show off the best of their city. Families with spare space who want to earn additional income to help pay the bills. Or senior hosts with time to spare in their retirement. Airbnb offers benefits to people of all ages and backgrounds. Through connecting people from around the world by breaking down barriers and helping them experience the world in a whole new way. It’s clear that Airbnb is doing what it set out to do: make travel magical again. And help people feel at home anywhere.

Explaining Legal Perplexity

Nations are adopting different strategies in managing Airbnb’s outset.

Japan is endeavoring to progressively legitimize Airbnb by as of late executing the Minpaku “Home-Sharing” Law. This law is in effect since June 15.

In Singapore, all transient rental of private and public lodging posted on Airbnb is entirely precluded. The allowed length of the rental period is at least three to six months. The Singaporean government’s goal is clearly to protect the hotel industry.

In Thailand, there are two uncertain laws identified with Airbnb’s case. The 2004 Hotel Act denies landlords of properties from giving momentary rentals to a time of under 30 days without a hotel permit. The 2008 Ministerial Regulation, which administers hotel operations, contains statements that would reject short-term rental properties. Explicitly guesthouses or properties with four rooms or less as well as can oblige only up to 20 visitors, from being considered as a hotel.

To some extent, renting out private houses on Airbnb is comparable to operating a guest house. It is because these properties operate in a small scale, whereby single guests/groups are easily monitored.

To sum up, it’s a good idea to have a competitive and digitally empowered hospitality service providers. It will improve the overall journey of the visitors and will add positively to the nation’s economies (after necessary regulations and legislations) by connecting the diverse communities from across the globe.

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Haroon Yousafzai

A Digital Media Enthusiast, and a Real Estate observer in Bangkok, sometimes try to write about the news & events related to Thailand's Real Estate. The author's views are entirely his or her own and may not always reflect the views of Angel Real Estate Consultancy.

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