The emerging trend of sex tourism has created controversial effects through its ability to provide a unique tourism experiences and attracts global tourist. Apart from the positive impact which brought by sex tourism to the industry, the activities also brought negative perception and issues, namely; safety and security concern, social conflict, health concern and negative perception about the country. However, no clear research has examined the impact of sex tourism activities towards consumers`` decision making in hotel selection. The purpose of this study is to establish if the existence of sex tourism in a particular country has an effect on consumers`` hotel selection decision. Questionnaires are distributed to random sampling of 200 respondents in Chiang Mai, Thailand. Findings show that safety and security is the most important factor when customers choosea hotel in a country where sex tourism is highly promoted. Interestingly, social cultural factors (religious belief and status) and motivation factors (past experience and hotel pricing) were not significantly perceived in the process of hotel selection.