Thai hotels concerned extra holidays may not benefit all
As the Cabinet confirms two additional long weekends in November and December, the country’s hotels are concerned that not all operators will benefit. The extra holidays, running from November 19 to 22, and from December 10-13, are being introduced to further boost domestic tourism. Although they have been given a cautious welcome by hotel operators, the Thai Hotels Association points out that some properties will benefit more than others.
The Bangkok Post reports that the THA is concerned about domestic tourists’ ongoing purchasing power, due to a number of holiday weekends taking place recently, including the Songkran replacement holidays in July and again earlier this month. The association says there’s a chance only those who can afford another trip will travel during the November and December holidays, and their spending power means they’re more likely to book higher end, 5-star properties.
THA president, Marisa Sukosol Nunbhakdi, says not everyone will be able to afford air tickets, in addition to hotel accommodation and the cost of leisure activities at their destination. If only the wealthier can travel, they are also more likely to favour luxury accommodation.
“When luxury hotels have more affordable prices after enrolling in domestic stimulus campaigns, tourists who still have strong purchasing power will pick these hotels first.”
Marisa adds that with all properties sharing the same small pool of target customers, namely Thai citizens and expats, competition is tough. She is calling on the government to provide additional incentives to help operators outside of the luxury, 5-star category. The THA acknowledges that the November and December holidays are likely to provide a boost for hotels in the north of the country, which is usually popular during the winter season.
During the recent holidays, hotel bookings were up 20 – 30%, with some hotels enjoying a 40% increase due to their location. Marisa says the huge slump in international tourists means properties are now relying on government conferences and seminars to make up some of the shortfall. However, the delay in budget spending from October will have a negative impact.
“Hotels should have higher bookings from state agencies for October, but the delayed budget has stagnated this segment.”
With most operators still struggling with debts, the THA is calling on the Finance Ministry to extend the debt moratorium and to create a tourism fund whereby hotels can use their shares to avail of loans, re-purchasing the shares once financial stability returns.