BANGKOK — As Thailand’s tourism continues to grow, the Thai Hotel Association (THA) has suggested that the government launch another round of stimulus measures focusing on labor and financial support. They also urged the government to consider extending the free visa requirement for destination markets and postponing the imposition of the “landing fee” for another two years.
A confidence survey in August showed an average occupancy rate of 62%, higher than the previous month. 60 percent of hotels reported revenues at or above pre-COVID-19 levels.
Mr. Thienprasith Chaipataranun, President of the Thai Hotels Association (THA), shared that the Hotel Business Operator Sentiment Index data conducted by the THA in collaboration with the Bank of Thailand for August 2024 (collected from August 19-30, 2024 with responses from 106 hotels) shows that tourism continues to grow.
This is the result of effective tourism promotion strategies, cooperation between the public and private sectors in conducting tourism campaigns for domestic and international travelers, and the significant factor that tourists have gained confidence through the visa waiver and TM6 card measures.
Call for Ongoing Stimulus Measures
However, most hotel operators want the government to continue its support measures. These include promoting tourism in popular cities, encouraging travel on weekdays, boosting tourism for conferences and seminars and implementing the “We Travel Together” campaign to increase visitor numbers in the low season. It also calls for the continuous promotion of Thai tourism.
Support measures to reduce costs include lowering utility and energy costs, reducing construction taxes and granting additional tax deductions for hotel businesses. Labor measures include government support for hotels and restaurants to provide labor, especially for food service and front office staff. The government should also provide language courses for hotel employees, especially in English and Chinese.
Financial measures include low-interest loans for hotel renovations, with a focus on supporting small and medium-sized enterprises. Other measures, such as improving transportation infrastructure, waste management and combating air and water pollution in tourist areas, are also needed. In addition, stricter control of non-hotel accommodation and combating illegal foreign businesses that tarnish the image of Thai tourism are crucial.
Push to Extend Visa-Free Measures
The association wants the government to postpone the collection of landing fees from foreign tourists for at least two more years so that the tourism sector can fully recover.
At the same time, the purpose of the Tourism Promotion Fund, which is financed by the landing fee, should be clearly defined, i.e. where the money will be used for development. The government should also consider extending the visa waiver (free visa) for the destination markets.
Government Policies Help Distribute Income
In addition, THA is confident that the government’s measures to promote tourism and facilitate visa applications for groups such as international exhibition (MICE) participants and digital nomads, as well as the promotion of new forms of tourism, the creation of artificial destinations, entertainment complexes, the relocation of concerts, festivals and global sporting events to Thailand will increase revenue distribution for hotel operators and related businesses.
Developing infrastructure and connecting domestic and international tourism routes, ensuring safety and providing convenient access to new destinations are crucial to improving tourists’ experiences and satisfaction during their trips to Thailand.
60% Revenue Matches or Surpasses Pre-COVID Levels
In August, the hotel industry recorded an average occupancy rate of 62 percent, an increase compared to the previous month and the same month last year. Regionally, the central region had the highest occupancy rate at 71.5 percent, followed by the eastern region at 65.5 percent, the southern region at 61.2 percent, the northern region at 50 percent and the north-eastern region at 36.1 percent.
Around 60 percent of hotels reported that their total revenue was either higher or close to the same as before COVID-19 (32 percent reported higher revenue and 28 percent reported similar revenue). Most of these hotels were 4-star or higher, benefiting from increasing room rates due to improved services and room renovations, with an increase in bookings and the use of promotions to increase revenue.
Meanwhile, 40 percent of hotels are still recovering slowly, with most expected to return to normal revenues by the second quarter of 2025. These hotels are struggling to increase room rates due to customer price sensitivity and strong competition. In addition, 7 percent of hotel operators estimate that their revenues will not return to previous levels, most of which are 3-star hotels or lower.
Asia and Middle East as Key Customer Segments
In August 2024, more than 60 percent of the hotels surveyed had more than 50 percent of their guests from foreign markets, with most being from Asia and the Middle East (excluding China and Malaysia), China, and Western Europe, primarily staying at 4-star hotels or higher.
During August, most 3-star or lower hotels had average daily room rates below 1,500 baht, while around 50 percent of 4-star hotels had room rates between 1,500-2,499 baht ($45-75). More than 40 percent of 5-star hotels had average room rates exceeding 5,000 baht ($150).
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