Holiday and second home resorts in Thailand

The future of resorts in Thailand’s post-pandemic world

Relaxation stages: Under the fourth and following stages of relaxation, there is no night curfew anymore, domestic flights are allowed. Currently, entry into Thailand is not possible for foreign tourists. However, under the “tourist bubble” scheme, this restriction of the emergency decree will vanish sooner or later. Alcoholic beverages can already be served at restaurants, food centers, and hotels, but pubs, bars, karaoke shops, and entertainment venues will remain closed for now. The hospitality sector is back in business – a little bit.

New normal: Thailand is going to establish a new normal in the post-pandemic world. It will have significant relevance for the whole hospitality sector and requires a robust adjustment on several levels. This includes a lower occupancy rate, a different structure of guests and customers, altered demands, and modified requirements to the venue’s physical conditions and the facilities of the resort. It is recommended not to stop at temperature measurements, the placement of plexiglass panels, and hand gel dispensers. Substantial parts of the needed actions concern legal matters.

PUGNATORIUS Ltd. in Bangkok is at the disposal of resort owners throughout Thailand with its specific experiences and unique expertise to support them in the difficult transition phase. This includes tough decisions, unavoidable cruelties, and ambitions that can only develop their positive impact in the long term. The special value of the firm’s assessment lies in its independence from the local environment and approach from a higher perspective.

The turning point caused by the pandemic and the associated restrictions should be taken as an opportunity to rethink and reassess the current structuring and administration of the resort. The new normal will in all likelihood entail an increased application of existing laws and regulations. Illegal conditions will no longer be tolerated in the long run. Weak points will be revalued and eventually exploited by various stakeholders. Disruption will occur on various levels.

How to make the resort fit for the post-pandemic world

Increased controls: Even after the abolition of the emergency decree, the official control density for hospitality projects will remain high in the long term. The monitoring of anti-coronavirus measures and requirements will obviously be combined with other inspection tasks. The resort operator should exclude or at least reduce unwished random findings in advance. Now is the right time to review the legal issues and unclear legal and contractual relationships. 

Resort licensing: In an increasingly competitive environment, the need to offer short-term holiday guests and tourists overnight accommodation in full compliance with the laws will grow. In many cases, this will only be possible by obtaining a hotel license. The law firm in Bangkok is for many years familiar with the associated tasks and difficulties. This includes the legal relations between resort management and the residents of the individual villas, the circumstances of an EIA (environmental impact assessment), the spatial separation of villas, reception and swimming pool, and other practical problems. The current recovery period should be used to clarify this and to initiate the measures that will ensure the long-term survival of the resort.

Restructuring and redundancies: Not every resort will survive the coronavirus unscathed. There will be victims. Economic viability should be decided in light of the legal and fiscal framework. If the situation is hopeless, there’s no point in waiting with robust measures. This applies to labor law tasks, structural changes, and, in extreme cases, the closure of the business. In all these cases, the firm assists in the rapid implementation and does not shy away from cruelty in the interest of the client.

Additional tasks: Over the years, various things accumulate in an investment venture that are not actually necessary for operational reasons, but had not been tackled only for reasons of convenience. This is also the case with a resort project. When COVID-19 related measures are taken, it makes sense to include such points.

Professional services how to come back stronger and fitter

PUGNATORIUS Ltd. is the Bangkok-based specialist provider of transactional legal and tax advice on foreign investments in Thailand’s manufacturing and service industries as well as property acquisitions and developments. It has the independence and industry-expertise to support and assist resort developers in Thailand’s provinces to come back from the pandemic crisis fitter, better, and stronger.

The legal team is prepared to discuss with the resort operator on the current situation, market opportunities, and to share the experiences from other resort ventures.  #CoronaAlliance #postpandemicworld

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