Pattaya hotels express concern over increased operational costs from the July 1 wage hike. (Photo by Jetsada Homklin) PATTAYA, Thailand – Ahead of the planned nationwide minimum wage increase to 400 baht per day on July 1, hotel operators in Pattaya are urging the government to reconsider the timing and scope of the policy, citing concerns over its potential economic impact on the hospitality sector. The Thai Hotels Association (THA) has submitted a formal letter to Prime Minister Paetongtarn Shinawatra, requesting a review of the decision. The association points specifically to the hotel and service industries, where businesses are still recovering from the effects of the COVID-19 pandemic. THA President Thienprasith Chaipattranan said the association supports efforts to improve workers’ livelihoods, but emphasized the importance of fairness and broader consultation. “Raising wages is not the issue,” he noted. “What we are asking for is a fair and inclusive process that considers the varying capacities of different sectors and business sizes.” According to the THA, the wage hike would apply to hotels rated two stars and above or those with 50 or more rooms, potentially increasing labour costs by 10–15%. Three Core Concerns from the Hotel Sector Tourism Recovery Remains Uneven Despite signs of improvement in international arrivals, many hotel operators in Pattaya report that occupancy rates remain inconsistent. The return of key source markets such as China, Russia, and Malaysia has been slower than expected, and economic uncertainty continues to weigh on travel decisions. “Weekends are better, but weekdays are still difficult,” said a local hotel manager. “We’re not seeing the same sustained flow of guests as before.” Selective Application of Wage Hike Industry representatives have raised concerns about the policy targeting specific sectors, such as hotels, without a uniform approach across industries. Smaller operators worry this could unintentionally incentivize informal practices or discourage compliance with regulations. One mid-sized hotel owner noted, “We want to support fair wages, but applying the increase only to certain types of hotels puts added pressure on businesses that are already trying to operate transparently.” THA President Thienprasith Chaipattranan appeals to the government for a balanced approach to wage policy across the tourism sector. Maintaining Regional Competitiveness With other Southeast Asian destinations ramping up tourism campaigns and offering more flexible policies, some industry observers fear Thailand could lose its competitive edge. Rising operating costs, coupled with a strong baht, have led some visitors to perceive Thailand as a more expensive destination than in the past. “Affordability is a key part of our appeal,” said a local tourism consultant. “Balancing fair wages with sustainable pricing is critical if we want to keep attracting visitors.” The THA is requesting that the wage increase proposal be returned to the tripartite wage committee for further review. It recommends a holistic approach that accounts for regional differences, business capacity, and the broader economic climate. Stakeholders in the hospitality sector also suggest that additional measures — such as visa facilitation, targeted tourism campaigns and infrastructure investment — could provide more sustainable support for both workers and businesses. “Our goal is to work with the government on long-term solutions,” said Thienprasith. “We believe this can be done in a way that supports employees while also helping hotels stay open, invest in staff, and serve guests at the level Thailand is known for.”