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Thailand Hotels: Slow Bookings Better Than None | Samui Times
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Hotels in Thailand are desperate to cut room rates in an effort to gain occupancy before the country opens back up to foreign tourists.

But the war is on between them as many hotels are set to benefit from a 22.4-billion-baht tourism stimulus package, including a 40% subsidy on 5 million room nights.

Thailand Hotels: Slow Bookings Better Than None | News by Samui Times

Stiff competition is expected as hotels are trying to snatch up domestic tourists in an attempt to cushion the fallout from the Covid-19 lockdown.

Nikhom Jensiriratanakorn, director of Horwath HTL, said most hotels view low occupancies as better than none as some may not break even until December.

Thailand Hotels: Slow Bookings Better Than None | News by Samui Times

He said an analysis last year found the break-even point for Thai hotels at 47% occupancy with an average daily rate of 3,458 baht.

Bill Barnett, managing director of C9 Hotelworks, a hospitality consultancy, said a limited number of hotels will have better cash flow from the government support, but the stimulus is not enough to solve the overall problem. A company survey done with Delivering Asia Communications found Bangkokians prefer more natural destinations-which is problematic for those hotels in Thailand’s capital as domestic tourists may choose to travel elsewhere.

Regardless, “Thailand cannot rely on domestic tourism alone,” he said.

 

SOURCE: Bangkok Post

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