Thailand counting the cost of conflict and floods
Thailand’s tourism industry is losing its competitiveness to Hong Kong and Singapore despite offering cheaper products and accommodation, says a hotels’ association boss.
”Thai tourism has not recovered from the global economic crisis that started in late 2008 and domestic political uncertainty,” said Prakit Chinamourphong, president of the Thai Hotels Association (THA).
”Foreign tourists are not returning yet, so tourism operators must focus more on the domestic market instead. They’re pinning their hopes on the coming high season, but reservations are not as high as they expected,” he told the Bangkok Post.
To make matters worse, the recent floods in many areas of the country have affected domestic tourism.
Mr Prakit said average hotel occupancy this year should be about 60%, similar to last year. However, average room rates in Thailand were much lower than in Hong Kong or Singapore.
”The flood impact will be short-lived. It’s the local political uncertainty that will remain the biggest threat for the tourism industry, as we don’t know how long the state of emergency will go on in many locations,” he said.
The average room rate for a five-star hotel in Thailand is about US$133 per night, compared with $200 in Hong Kong and Singapore.
But occupancy is averaging about 70% in Singapore and 75% in Hong Kong, according to a THA report.
“We offer a better product, but Thais have damaged their country themselves,” said Mr Prakit.
The association reported that reservations in the most popular destination, Phuket, for this month and next month stood at about 70% of available rooms, down from the norm of 80-85% for the period.
For the same peak season in Chiang Mai, bookings are now at 50%, down from 70-80% in the past.
The private sector projects international tourist arrivals at 13 million this year, while the Tourism Authority of Thailand remains confident the country will achieve its target of 14.5 million tourists.
Ian Jarrett
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