Hotels looking to hire temporary workers as high season nears
With the high season approaching, hotel operators are preparing to address the current labour shortages so they are able to accommodate the pent-up demand from foreign travellers after the lifting of Covid-19 shutdowns.
According to Marisa Sukosol Nunbhakdi, president of the Thai Hotels Association (THA), a survey conducted in July by the THA in collaboration with the Bank of Thailand (BOT) involving 91 hotel establishments, found that the labour shortage problem in the hotel business in July was close to the level of the previous month, with around 47% experiencing staff shortages although this did not significantly impact the number of customers they could accommodate.
Among the hotels facing labour shortages, around 18% said that it affected the quality of service, a slight increase from the previous month's 24%. In the Eastern, Southern, and Northern regions, this impact was more significant.
For the upcoming high season, the survey showed that staff shortages would become more pronounced, with over 88% of respondents expecting a shortage, while the remaining 12% believed there would not be a big problem during the high season.
Most hotels are prepared to cope with the problem by hiring temporary workers, with 79% of respondents indicating this approach. Additionally, 73% mentioned enhancing the skills and roles of their existing workforce, 35% planned to use technology or automation to replace staff, while 28% intended to increase wages and overtime pay to attract workers. About 20% were considering hiring permanent staff.
The survey also looked at the impact of rising interest rates on current debt repayment capabilities. It revealed that 52% of hotels believed they could manage debt payments despite the increased interest rates. However, among 3-star hotels or lower, 29% were significantly affected, potentially missing debt payments, or needing to restructure debt. In contrast, 5-star hotels seemed less affected by the higher interest rates.
Regarding the predicted influx of Chinese tourists in the current and fourth quarters of 2023, the majority of hotels (61%) predicted that Chinese visitors in the third quarter would not exceed 20% compared to the same period in 2019 while 69% believed that Chinese customers' return in the fourth quarter would still be below 40% compared to pre-pandemic levels.
The July occupancy rate increased to 57.5%, up from 45.5% the previous month with all regions experiencing an increase. Some of this increase was attributed to the school summer break in certain countries, leading to more foreign tourists. Eastern Thailand had the highest average occupancy rate at 68%, followed by Central Thailand at 66.2%, Southern Thailand at 58%, East and Northeast Thailand at 40%, and Northern Thailand at 39.6%. The projected occupancy rate for August was 54.4%.
Marisa added that while foreign tourist proportions were increasing, Thai tourist proportions were decreasing. This is reflected in hotels where over 50% of customers are international, accounting for 60% of the respondents. Most of the international customers were from Asia and the Middle East.
In conclusion, Marisa emphasised the need for readiness to adapt, adopt new ways/new skills and cultivate new mindsets to adapt to changing market dynamics. Hotels should change marketing strategies from aggressive promotion to creating themed trips to enhance community-based tourism. This would contribute to a stronger tourism industry, linking tourism across all regions and driving economic growth through innovation and technology. This is essential as many countries are simultaneously reopening tourism, intensifying the competition for tourists.
