Despite gradual revival in tourism, small hotel operators still await light at the end of the tunnel
Thai small hotel operators are struggling in the post-Covid-19 era as discounts offered by large hotels and the reopening of many Asia-Pacific countries are affecting their business operations, a report in Thansettakij said on Tuesday.
Many hotel operators were forced to use pricing strategies to gain a competitive advantage, as many countries have reopened to foreign tourists.
Thai hotel operators still have to rely on domestic tourists. Though more than 10 million foreign tourists are expected to visit Thailand this year, the number is only one-fourth the 40 million people who visited before the Covid-19 crisis in 2019.
Thailand has welcomed more than 6 million foreign tourists after the country’s reopening on June 1.
Despite the impact of inflation on their income and expense, many Thais have decided to travel across the country, especially during long weekends, Thansettakij added.
"Even though hotel operators' revenue continued to increase, their revenue is still low compared to before the Covid-19 crisis," Thansettakij said.
Meanwhile, countries in the Asia-Pacific region such as Japan, South Korea and Taiwan, have eased travel restrictions to attract foreign tourists tempting Thai tourists to take overseas trips.
Many Thais have flocked to Japan since October 11, as Tokyo is issuing free visas and allowing people who have received at least three Covid-19 vaccine jabs to enter the country.
In addition, many countries have also organised tourism stimulus campaigns. For instance, Hong Kong planned to offer 500,000 flight tickets worth HK$2 billion or 8.01 billion baht.
"This is why the Tourism Council of Thailand has urged the government to allow small hotel operators to request for a business licence, so they will be able to access funds and continue their business while waiting for foreign tourist influx during the high season," Thansettakij added.
The Tourism Authority of Thailand aims to increase the number of foreign tourists visiting Thailand next year by 50 per cent compared to 40 million people before the Covid-19 crisis.
Meanwhile, Thai Hotels Association expected Thailand's tourism to benefit from direct flights during the high season in the last part of this year, the easing of Covid-19 restrictions, and the hosting of the Asia-Pacific Economic Cooperation Summit in Bangkok in November.
