It's always difficult to work out what is really going on when there appears to be contradictory information - are hotels really feeling the squeeze or is this just more smoke and mirrors?Hotels feeling the squeeze
Occupancy rates fall as operators blame politics and currency
Published on September 6, 2007
Hotel operators around the country are reporting declining average occupancy rates and blaming the country's political problems and currency fluctuations.
Thai Hotels Association (THA) vice president Prakit Chinamourpong said hotels in most regions were running at lower occupancy rates than in the same period last year.
However, Tourism Authority of Thailand (TAT) governor Phornsiri Manoharn has reported a 3.3-per-cent increase in tourist arrivals in the first half of the year and says the lower hotel-occupancy rates are due to the fact that there are more hotels and not fewer tourists.
THA figures show that the average occupancy rate for small hotels in Bangkok last month was 70 per cent, down from 78 per cent in August 2006. For big hotels, last month's rate was 71 per cent, down from 77 per cent last year.
The occupancy rate for hotels in Hua Hin and Cha-am fell from 50 per cent in August 2006 to 45 per cent last month.
In the Northeast, the figure dropped 20 per cent from 50-60-per-cent occupancy in August 2006.
At Pattaya's hotels, the average occupancy rate last month was 56 per cent, down from 68 per cent in August 2006. However, hotels in Phuket and Khao Lak showed an increase of 10-20 per cent to reach 40 per cent last month, due mainly to the recovery of tourism along the Andaman Coast.
The THA said listed political unrest, currency fluctuations and fears of more bombs in Bangkok and other major tourist destinations as the main factors contributing to the decline. In reporting the figures to the TAT yesterday, the association urged the authority to rebuild the industry. TAT's Phornsiri responded by saying tourist arrivals in the first half of the year totalled 6.9 million, up 3.3 per cent year on year. She said the number of visitors had been increasing gradually and that TAT expected to reach this year's target of 14.8 million arrivals."The average hotel-occupancy rate is decreasing because more hotels are opening," Phornsiri said.
In order to boost the number of inbound tourists, the TAT is increasing its international trade shows and foreign roadshows from three or four events a year to eight to 10.
The latest event involved promoting Thailand's tourism products in southeastern China. Phornsiri said the TAT hoped to attract close to 1 million Chinese tourists this year, especially "high-end" travellers.
The Amazing Thailand campaign is being pushed in China by billboards proclaiming "Amazing Thai Gau," Phornsiri said. The agency plans to work with Visa Card in China during the 2008 Beijing Olympics, offering lucky draws. Its promotions at the Olympics will also target tourists from third countries, especially those from Europe, who are in China for the games.
She said TAT would promote the formation of I Love Thailand Clubs in more countries, including Japan and South Korea. The first club was recently set up in Fukuoka, Japan.
"The tourism sector is expected to improve in the final quarter of this year, due to the clearer political picture from the general election," she said.
Suchat Sritama - The Nation
THA & TAT appear to have very different song sheets - IMHO both need to double check and verify their numbers, then sit down together and reconcile the differences otherwise both end up with a credibility problem.
IF TAT are correct it would have required a big number of new hotels to have been built and opened to result in the drop in occupancy rates that THA are reporting.
