HAT YAI — Severe flooding in southern Thailand has dealt a heavy blow to Hat Yai’s tourism industry, leaving hundreds of hotels damaged and wiping out the city’s most profitable travel period ahead of the 2025 peak season, local business leaders said this week.
The Hat Yai–Songkhla Hotel Association said about 90% of the city’s 300 hotels suffered damage when floodwaters inundated the commercial hub of Songkhla province earlier this month. Losses are estimated at more than 50 billion baht ($1.56 billion), with hotel operators warning that the city will miss out on year-end revenue, including anticipated bookings tied to the Southeast Asian Games.
“December is normally our strongest month,” association president Sitthipong Sitthiphatprapa told Prachachat Business. “But this year, Hat Yai will welcome only half the usual number of tourists. Many attractions, massage shops, restaurants and entertainment venues are still under repair.”
$94 Million in Hotel Damage
Sitthipong said physical damage to hotels alone is estimated at 3 billion baht ($94 million), and many properties that escaped flooding are unable to operate normally because surrounding infrastructure remains impaired. The association has submitted eight relief proposals to Prime Minister Anutin Charnvirakul, including a three-year debt moratorium, interest-free rehabilitation loans, and tax and regulatory waivers.
“The government’s compensation of 9,000 baht ($280) per household may not be enough,” Sitthipong said, adding that he is working with foreign missions to assist stranded tourists. The Chinese consulate recently reported that one visitor remains missing.
Total Sector Losses Exceed $1.56B
Siwat Suwanwong, an executive with the Buri Sriphu hotel group and a board member of the Thai Hotels Association Southern Chapter, said the flooding has disrupted hotels, tour operators, restaurants, retailers and households across Songkhla.
“Every hotel was fully booked for December, Christmas, New Year and the SEA Games,” he said. “All that revenue has disappeared.”
Siwat estimated losses from canceled travel and damaged property at “no less than” 50 billion baht ($1.56 billion). He warned that recovery may take longer than government projections because many areas still face water shortages and cleanup delays.
“For Hat Yai to be restored in seven days, we would need much larger reinforcements from the military and central agencies,” he said. “We are trying to recover before the 2026 New Year, but it depends on government support.”
Tourism operators in the inner-city basin area were among the hardest hit, with about 80% of hotels there suffering severe flooding and underground parking areas still submerged. Retailers, bus and van operators, and tour companies also reported extensive losses.
Daily Tourism Losses Hit $31M–$47M
A Tourism Council of Thailand source said economic losses across commerce, services and hospitality now range from 11.8 billion to 23.6 billion baht ($370 million–$740 million). Daily losses from stalled travel are estimated at 1 billion to 1.5 billion baht ($31 million–$47 million).
More than 300 hotels with about 30,000 rooms have been affected by cancellations and forced closures. Malaysian tourists — the city’s most important market — are expected to drop by 7% if conditions persist for one week, and 8% if longer.
Tourism revenue in Songkhla fell to 1.92 billion baht ($60 million) in November, down 8.5% from a year earlier. Spending in the broader southern region declined 4.1% to 2.41 billion baht ($75.5 million). Officials expect December figures to weaken further.
Tourism Recovery Unlikely Before Chinese New Year 2026
November through January typically marks the high season for southern Thailand. Several provinces now risk missing their most important revenue window, with recovery likely delayed until around Chinese New Year in 2026.
Tourism Council of Thailand president Chai Arunyanonchai said the disaster has disrupted infrastructure, attractions, and labor forces, creating severe liquidity shortages for local operators.
“As Thailand enters its peak tourism period, the government must restore confidence and support business continuity,” Chai said. The council aims to return 80% to 100% of tourism operations within 60 days — in time for the Chinese New Year — to prevent bankruptcies, bring workers back on the job, and reassure international markets.
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