Hotel rates across Thailand set to rise because of new regulations

The increase will allow hotels to offset the costs of investing in the new standards.

Thailand's top destination management companies have reacted calmly to the news, saying that any increase will not affect existing business in the short-term with rates negotiated until October next year. However, rates could be adjusted for new business.

"Increases will not apply to already quoted-for business. For new business the increase should be as small as possible," said AsianTrails managing director Roger Haumueller. Haumueller added that corporate clients might choose to lower the hotel category and meet budgeted costs.

Pathfinders Travel managing director Ashley Monteiro was more sceptical of the news."I do not expect rates to increase at all as a result of this news and I think this is just smoke on the water."

Monteiro cautioned that an increase of rates could result in lost business. "Kuala Lumpur is already about 20 per cent cheaper than us and is pulling events away so the question is, what level of reductions should we be suggesting to the hotels."