Thailand’s Hotels Registers Big Occupancy Losses

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Jul 30, 2010

Thailand’s hotels are suffering massive declines in occupancy according to Thai Hotel Association president, Prakit Chinamornpong, who briefed members yesterday at the association’s monthly meeting in Bangkok.


He reported occupancy declines across the country. In the eastern region, the average performance was, 44.75%, in the North down to 41.30%, western provinces, 56% and Bangkok down to 49.9%.


According to the THA president, the average occupancy rate, across the country, should be approximately 65 to 70% but this year the rate dropped to 40 to 50%. There was no information from the southern provinces as the chapter representatives did not attend the meeting.


The only bright spot was that the eastern seaboard, including Pattaya, performed better than last year, but only by a marginal 1.81%.


“As long as the state of emergency is in place,” said Mr Prakit, “we can expect to lose business and suffer low occupancies across the country.”


He recommended that the state of emergency should be reviewed monthly not every three months.


According to The Thai Chamber of Commerce and Board of Trade of Thailand chairman, Dusit Nontanakorn, the on-going political crisis had damaged tourism and hotels, but in contrast exports and the economy showed positive trends.


Tourism is making a slow recovery according to THA because of various factors including recession in Europe and changing travel habits in North America. But the lack of confidence in Thailand’s security was the most worrying factor.


“People book much later now and are more concerned by environment and related taxes are an issue,” Mr Prakit noted, adding that such concerns would impact on long-haul markets. He predicted that Asian markets would recover faster and had more potential for growth for Thailand’s hotel industry.

 

/Source: TTR Weekly

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