Tourism and Sports Minister Sorawong Thienthong said the revenue total the ministry reports annually is lower than the real tourism tally because of the vast informal economy, including illegal accommodation and daily lodgings listed on home-sharing platforms such as Airbnb.
He said the new Hotel Act, dedicated to small and medium-sized operators, which is expected to be read in parliament by April, should help close that gap.
As the government launched the "Amazing Thailand Grand and Sports Year 2025" campaign this week, with a revenue target of 3.5 trillion baht, Mr Sorawong said revenue recognition from these informal businesses could greatly help the country record more revenue than the 2.75 trillion baht earned last year.
Ratchaporn Poolsawadee, vice-president of the Tourism Council of Thailand, said registering more accommodations is crucial for the tourism industry.
He said the government could collect taxes, ensuring fair competition among operators, while newly registered operators can access privileges from stimulus schemes, join trade shows and access financial loans to remain competitive.
Mr Ratchaporn said more than 85% of 100,000 accommodations nationwide are not registered.
These operators earn hundreds of thousands to millions of baht monthly, meaning there could be a revenue windfall if they are registered in the system, he said.
He said the government should also attract other businesses, such as Airbnb, and ride-hailing services, and eliminate illegal foreign operators and nominee businesses, which also result in lower tourism income as revenue would flow out of the country via those networks.
Naree Suneta, president of the Hostel Thailand Association, said some small operators refuse to enter the system as they are worried about the high rate.
She said the government should inform them of the benefits, such as eligibility to access loans with special rates.
In Bangkok's Phra Nakhon district, only 20 hotels out of 140 accommodations have licences.
Chinnawat Udomniyom, president of Phuket Boutique Accommodation Consortium, said while hotels in Phuket can enjoy higher room rates due to its reputation among foreign tourists, only a few have licences.
If the Tourism Authority of Thailand's Phuket office aims for a new high of 500 billion revenue this year, a key driver is to attract more operators into the system, said Mr Chinnawat.
The association supports the new Hotel Act for small and medium hotels, as the ministerial draft that eases regulations for these types of hotels to apply for licences will expire in August. Many applications are not expected to meet this deadline.
He said the government should also tackle nominee and illegal businesses, such as Chinese-owned tour companies and accommodations, as well as foreign tour guides, which contribute to lost revenue for Phuket's booming tourism.
WRITER: Molpasorn Shoowong