In Thailand, Airbnb and homestays undercut hotel industry as tourists seek unique experiences

Airbnb generated US$1.1 billion in direct economic impact to the Thai economy last year, nearly half to local communities

But hotel operators say home share offerings operate without proper licences and are affecting their businesses, as the strong baht also hurts tourism

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The Lumphini area of Bangkok, Thailand, where a number of high-end hotels are located. Photo: AFP

Published: 10:00am, 20 Dec 2019Updated: 10:07pm, 20 Dec 2019

In the hills in Thailand’s northern city of Chiang Mai, guests can opt to stay in one of 10 wooden huts on a serene, naturally cool hilltop close to the homes of the local ethnic Hmong community.

MonHmong, which offers guests what it calls an “authentic experience”, joined home sharing platform Airbnb’s homestay training programme last year. The programme is supported by the local government in a bid to boost tourism in Thailand’s second-tier cities and benefit local residents.

The owner of MonHmong, who declined to be named, charges 900 – 1,500 baht (US$30 – 50) for a hut for two guests per night which includes breakfast. Unlike a typical homestay where all meals are covered, guests here order meals from the kitchen.

Villages surrounded rice fields in the northern Thai province of Chiang Mai. Photo: AFP

But MonHmong does not meet the tourism department’s definition of a homestay, which is when a host leases out up to four rooms in their home in exchange for a fee.

Homestays in Thailand must register and comply with rules including receiving up to 20 guests at a time and a shared living space for “cultural exchange” between a host and guests. Other types of accommodation that provide short-term stays such as apartments or hotels are licensed separately. A commercial short-term stay at any private residence is illegal.