BANGKOK, THAILAND – Thailand’s hotel industry is looking with great concern at the coming months as a massive decline in advance bookings hits resort areas hard at the start of the low season.
War Drives Up Airfares
The conflict in the Middle East is heavily burdening Thai tourism. Prices for kerosene are rising, making long-haul flights from Europe significantly more expensive.
Many holidaymakers from Germany and Great Britain are deterred by the high costs. They are taking a wait-and-see attitude or cancelling already booked trips.
South Suffers Booking Slump
The province of Phangnga is hit particularly hard in May. Occupancy rates in hotels there plunge to only 20 to 30 percent.
In Phuket, figures remain somewhat more stable at up to 60 percent. Nevertheless, the island records nearly 18 percent fewer guests from Europe.
Luxury Hotels Feel the Decline
Luxury accommodations on Samui and in Krabi are also increasingly empty. Occupancy in the luxury segment drops to about 40 percent in May.
It is not only wealthy overseas tourists that are missing. Airline crews are also booking rooms in Thai holiday areas far less frequently.
Dirty Air Drives Away Guests
In northern Thailand, hotel operators additionally struggle with extreme air pollution. The high fine particulate matter levels massively deter even domestic travelers.
Occupancy in the north is only 41 percent in May. In the same period last year, it was still over 61 percent.
Asian Markets Offer Little Relief
Although significantly more guests from China, India, and Malaysia are coming to Thailand. In Krabi, the number of Chinese tourists rose by over 100 percent.
However, these visitors spend less money than European tourists. Hotels can therefore hardly raise their prices and suffer revenue losses.
Association Calls for Government Help
The Thai Hotels Association warns of a weak second quarter. The association is now calling for quick support from the government for the industry.
Proposed measures include lower energy costs and a waiver of new entry fees. The fight against dangerous fine particulate matter must also be a top priority.
Concern for Survival
For many hotel operators, this low season is about bare survival. The combination of global crises and local environmental problems threatens the painstaking recovery after the pandemic.