End of travel subsidy scheme takes a toll on Thai hotel occupancy

The Thai Hotels Association (THA) predicted that the overall hotel occupancy rate in Thailand for the month of June would be less than 50% after experiencing a full-scale slowdown in both the domestic and international markets.

Marisa Sukosol Nunbhakdi, the president of the association, said that according to the survey results of the "Hotel Business Confidence Index in May 2023”, conducted by the Bank of Thailand and the THA from May 10 to 25 with 110 respondents, the occupancy rate in May decreased from the previous month to 51%, marking the start of the low season for Thai and international tourists.

Marisa said the conclusion of the "Let Us Travel Together" phase 5 campaign in April also contributed to the decline. “The estimated occupancy rate for June is projected to be 48%,” she said.

The Thai Hotels Association (THA) predicted that the overall hotel occupancy rate in Thailand for the month of June would be less than 50% after experiencing a full-scale slowdown in both the domestic and international markets.

Marisa Sukosol Nunbhakdi, the president of the association, said that according to the survey results of the "Hotel Business Confidence Index in May 2023”, conducted by the Bank of Thailand and the THA from May 10 to 25 with 110 respondents, the occupancy rate in May decreased from the previous month to 51%, marking the start of the low season for Thai and international tourists.

Marisa said the conclusion of the "Let Us Travel Together" phase 5 campaign in April also contributed to the decline. “The estimated occupancy rate for June is projected to be 48%,” she said.

The average occupancy rates by region in May were:

— The North saw the biggest decline to 29.9% from the 42.7% recorded in April.

— The Northeast dropped to 40% from the previous month's 43.5%.

— The East fell to 59% from the previous month's 67.1%.

— The Central region decreased to 59% from the previous month's 65.5%.

— The Southern region decreased to 52.4% from the previous month's 61.8%.

"Although we have entered the low season and are experiencing an overall decline in the proportion of international tourists, the main customers for the majority of the respondents — 55% — were still foreigners. Among the international guests, the majority were from Asia, followed by East Asia and China," added Marisa.

She said that when looking at the overall situation of Thai tourist arrivals in hotels from the beginning of 2023 until now, 44% of the hotels reported higher numbers of Thai tourists compared to pre-Covid-19 levels; 13% of the hotels reported Thai tourist numbers approaching pre-Covid levels, and 43% had fewer Thai tourists than during the pre-Covid-19 period.

The hotels that reported higher numbers of Thai tourists compared to pre-Covid times were mostly located in the southern and northeastern regions, and they were primarily 5-star hotels.

On the other hand, hotels in the North had fewer Thai tourists than before Covid-19 due to issues such as smog and intense heat.

Similarly, the average length of stay per trip by Thai tourists increased, especially in hotels in the southern and northeastern regions.

As for international tourists, 47% of the hotels, particularly those rated 5-star and above and hotels in the southern region, reported longer stays by international tourists. The majority of foreign customers had an average length of stay higher than before the Covid-19 outbreak.