Secondary province hotels need staff, not tax benefits

The majority of hotel entrepreneurs believed that the government’s policy to offer tax benefits to hotel operators in secondary tourist provinces in a bid to promote the tourism industry there would only marginally increase their income.

Their opinions were reflected in July’s hospitality operators’ confidence index, following a survey conducted by the Thai Hotels Association (THA) and the Bank of Thailand.

50% of 102 respondents said the policy would increase hotel income this year by only 5%, while most of the rest said the income increment would not exceed 10%, THA president Thienprasit Chaiyapatranun said on Wednesday.

He said the policy would not help operators address their biggest problem – lack of skilled workers, which is faced by about 40% of respondents.

He added that around 70% of respondents said most of their income came from tourist customers, while less than 20% came from business customers in the MICE (meetings, incentives, conferences and exhibitions) group, which is the segment that the government aims to promote in secondary provinces.

The survey also found that in the 3rd quarter of this year, over 50% of hotel operators hiked their room prices compared to the same period last year. Price adjustments occurred within the limit of 10%, mostly among 4-star establishments.

Thienprasit said that from the survey, most hotel entrepreneurs want to see government subsidies for utility costs, a delay in minimum wage hike, and reduction in land and building taxes. They also want the government to allow tax deductions from more business expenses.

In terms of labour, hotel operators want the government to establish an agency responsible for procuring skilled workers for the hospitality industry, as well as providing necessary skills training to existing staffers, especially in language, he said.