After alarming reports surfaced of Thai youths, particularly those aged 10 to 12, falling seriously ill due to vaping, the Thai government has swiftly responded by launching a crackdown on e-cigarettes over the next 30 days. This decisive measure raises the question—will the government enforce existing laws effectively to curtail e-cigarette use, or will it just be another example of enforcement failure?
Recent observations highlight the persistent presence of e-cigarettes on the streets and online marketplaces, indicating lax law enforcement. Critics worry Prime Minister Phaethongthan Shinawatra's one-month initiative could merely be window-dressing rather than real change. While e-cigarette sales appear to be less visible, underground cigarette sales remain rampant, often overlooked by authorities. A staggering 25% of the cigarette market consists of illegal cigarettes, posing significant dangers to youth due to their lower price and easy accessibility.
The country's southern region is particularly troublesome, with cities like Hat Yai and Songkhla seeing rampant illegal cigarette sales without proper regulation. Consumers, including local youths, often opt for these smuggled products, steering clear of taxed cigarettes stamped by the Thai government. This avoidance is costing the state over 28 billion baht annually due to lost tax revenues and impacts on other sectors of the tobacco industry.
According to the EU-ASEAN Business Council, illegal cigarette consumption has surged since 2017 and is now estimated to represent 25% of total cigarette consumption within Thailand. The ease of smuggling is facilitated by gaps in border controls and the corruption of duty officers, allowing illicit products to flood the market. Recently, the EU-ABC met with Prime Minister Phaethongthan and several ministers, presenting their findings, albeit with limited response from the Thai authorities.
Thailand's lack of effective law enforcement could lead it down the same path as Malaysia, where illegal cigarette consumption has reached dangerously high levels of 56%. With the looming need for regional cooperation, experts urge the Thai government to take bold action during the upcoming ASEAN summit to tackle this pressing issue.
Meanwhile, another pressing challenge is the abuse of the short-term rental market through platforms like Airbnb. Many Chinese investors have been purchasing condominiums to rent them out to tourists, significantly disrupting the local housing market. This practice, dubbed "condos at discount prices," not only irritates local residents but also violates Thai law under the Hotel Act of 2004.
Mr. Thienprasit Chaiyaphatranan, President of the Thai Hotels Association, expressed serious concern over the illegal rental practices and highlighted the necessity for stricter regulations. Condominiums should not be utilized for short-term rentals as outlined by law, particularly if they fall under condominium juristic persons. Unauthorized rentals bypass obligations such as reporting foreign guests to immigration within 24 hours, posing security risks.
Industry experts advocate for either the temporary suspension of these platforms or the implementation of stringent regulations requiring operators to register their properties legally. Without proper oversight, the influx of illegal rentals contributes to market instability and the loss of legitimate tourist revenue.
Chaiyaphatranan described the situation as unjust for those playing by the rules. The process to obtain hotel licenses involves numerous steps, incurring significant costs, whereas illegal operators exploit legal loopholes. He emphasized the importance of government intervention to protect both existing hotels and local residents from the adverse effects of unregulated short-term rentals.
Although some foreign buyers invest movable properties primarily for personal use, their purchases raise concerns over speculation and market manipulation, potentially exacerbated by proposals to raise allowable foreign ownership from 49% to 75%. Such moves risk favoring investors over local residents and limiting housing options for Thai citizens.
Further complicate matters, foreigners buying up to ten units at once raises suspicions of dealing beyond personal use. Critics argue this could lead to severe speculative activities detrimental to the real estate market and society.
While tourism brings economic benefits, it should not overshadow the need for protecting Thailand's integrity and security. Analysts suggest examining regulations on foreign property ownership to balance economic incentives with the welfare of local communities.
The situation requires urgent legislative action and commitment from the Thai government to enforce existing laws and address the burgeoning issues surrounding e-cigarettes and illegal rentals. Experts call for collaboration within ASEAN to develop comprehensive strategies to tackle these growing challenges effectively.