A minimum wage hike to THB 400 per day in 10 major tourism cities to affect hotels’ operating costs (Current Issue No.3478)

• If the government approves a rise in the minimum wage to THB 400 per day according to the proposal and conditions set by the Tripartite Wage Committee, the impact on the overall hotel industry is likely to be minimal as less than 5 percent of registered hotels nationwide will be directly affected.
• However, it is certain that labor costs for hotel operators will increase. The segments most affected will be those with a high proportion of workers currently earning less than THB 400 per day; those in locations with fewer tourists, whose bookings are mainly during the peak season; and those with lower average room rates per night.
• Attention must be paid to the Cabinet’s decision on this issue, and whether the government will introduce measures aimed at mitigating the impact on the most affected hotel operators.