Bangkok blockade: Hotel employees pay the price

Thursday, 11 Dec, 2008 0

BANGKOK – The closure of Bangkok’s main airports at the height of anti-government protest is now taking a heavy toll on the country’s hotel industry in terms of low occupancy rates and fewer working days for hotel workers.

The Nation reported employees of luxury hotels in Bangkok, Chiang Mai and Phuket have seen a cut in their working days as operators try to reduce operating costs without having to lay off workers in the light of plunging tourist arrivals.

Around the region, a check with major tour agencies and airlines found that many clients are still cancelling their trips and heading elsewhere to Indonesia, Vietnam, Cambodia, Malaysia, Hong Kong and the Philippines.

Since last Friday, when Suvarnabhumi resumed full operations, Tiger Airways’ flights have been leaving for Bangkok three times a day without 20 to 50 ticket-holders. “These are customers who have bought tickets but simply do not show up for their flights,” said Tiger head of communications, Matt Hobbs.

Prakit Chinamourpong, president of Thai Hotels Association (THA), said, “Some luxury hotels are running with a single-digit occupancy rate, sharply down from the average 70 percent rate recorded in the same period last year.”

“For the overall hotel industry, the average occupancy rate this month alone has declined 19.1 per cent,” he said, adding that the impact of the Bangkok airports’ shutdown was greater than the 2004 tsunami.

Prakit said some luxury hotels in Bangkok had also decided to cancel their gala dinner packages already booked for New Year’s Eve after customers cancelled reservations.

Local estimates indicate that the closure of the Bangkok’s airports could see the country lose up to 2.3 million foreign tourists.

Airports of Thailand (AOT) said about 15,000 flights had been cancelled during the eight-day closure of airports, but all airlines had resumed operations at Suvarnabhumi International Airport with the total number of flights now close to the usual 547 flights per day.

However, Phornsiri Manoharn, governor of Tourism Authority of Thailand (TAT), remains optimistic, saying the tourism sector’s growth could be revived as TAT and six other industry bodies plan to launch a series of post-crisis promotional campaigns.

Meanwhile, industry sources said Starwood Hotels and Resorts, the world’s largest international hotel chain operator, is considering the shut down of its regional Asia Pacific office in Bangkok.



 

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Ian Jarrett



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