The Thai Hotels Association says its 3-star hotel members are struggling to bounce back, despite the recovery seen in the wider tourism and hospitality sectors.
THA president, Thienprasit Chaiyapatranun, says 3-star hotels haven’t been able to raise their rates in the third quarter of the year and the tax cuts introduced for “second-tier” cities haven’t been enough to increase revenue.
A total of 102 hoteliers across the country were surveyed and the average occupancy rate last month was 59%. This is a 7% increase from June and is being attributed to the long-weekend holidays and various government promotions. However, most hotel operators fear the occupancy rate this month could drop to 56%.
Thienprasit says an insufficient number of international flights means occupancy is not expected to fully recover in the second half of the year.
“If the aircraft shortage could be resolved, full resumption of flight capacity could happen by next year.”
The Bangkok Post reports that 45% of mid-range hotels have kept their rates the same in the third quarter, but over 20% have had to cut them. For properties ranked 4-star and higher, 22% have kept their rates the same, 33% have increased them by less than 10%, and 33% have raised them by more than 10%.
“Hotels in the central and southern regions have higher potential to increase their room rates than others. Most hotels in the Northeast have maintained their room rates close to the same period last year.”
Meanwhile, of the hoteliers surveyed, 50% in second-tier cities say they don’t expect to see any benefit from the government’s tax deduction on travel costs in those cities. Over 30% of hotels in second-tier provinces say the scheme may increase revenue by less than 5%. Only 20% expect to see a 6 – 10% increase as a result of the tax cuts.
Despite the THA encouraging operators to renovate their properties and upgrade their services, Thienprasit acknowledges that low occupancy rates mean such improvements are financially unviable.
SOURCE: Bangkok Post
