The knock-on effect. Coronavirus hits Phuket hotels.

[webfact]

OPINION

 

The knock-on effect. Coronavirus hits Phuket hotels.

ByThe Thaiger

 

PHOTO: Some of the island's traditional hotspots are very quiet at a time when they should be very busy - Pinterest

 

The Thaiger’s occasional Phuket hotel management contributor is back with some inside knowledge of the current situation for hoteliers on the holiday island. That the coronavirus situation is affecting hotel bookings, is an understatement, he says. Here’s some of the current thinking as Phuket hoteliers stand around the water-cooler and mull the situation. Our writer has asked to remain anonymous…

 

Over the past weeks, as the coronavirus situation develops, hoteliers have been sharing information and revealing the knock-on effects on their businesses. Some hotels and resorts have been affected more than others, depending on the diversity of their guest base and the type of business they have/had on their “books”.

 

For us, we have so far lost approximately 1 million baht of business (FIT – Free Independent Travellers – guests) for February alone. Our friends are reporting FIT losses up to 7 million baht so far but the region of 2 – 5 million baht seems to be average so far.

 

Others we are hearing (confirmed data) have lost in the region of 3 – 10 million baht from the MICE (Meetings Incentives Conferences Exhibitions) markets and ‘commitment blocks’ which would have been negotiated sometime last year for the last part of January and into February. Sadly, as this has happened so quickly, it gives us all the challenge of finding new business to fill in the gaps.

 

But it’s not just guests from China who are cancelling now. Guests from other parts of the world, who were flying via a Chinese airport into Thailand, have been affected as their flights are cancelled. We have seen a few bookings cancelled or postponed over the past week as a result.

After this situation passes, and it will eventually pass, many hotels and resorts might look at their market mixes (as we are doing) and continue to diversify, looking specifically at merging markets to Thailand and aim for a more balanced business base (if there is such a thing). Only time will tell.

 

On top of all this, environmental concerns and traditionally strong high season markets are being told to ‘take the train rather than fly’. That will just add more challenges to us hoteliers for future business planning.

 

We are currently seeing so much negativity on social networks against Chinese visitors, however, Phuket has been one of their most favourite destinations for several years and the island really does need our Chinese visitors to return as they keep so many locals in jobs and our shopping malls open, etc. Many, many jobs will be lost if Phuket loses its Chinese traffic.

 

Our Chinese partners and travel offices in China have been so delighted and happy to see the lovely and uplifting video messages posted on social media (and reposted via WeChat) from many resorts, hotels and the Phuket Tourist Association showing support.

 

“Fake news” is certainly a factor playing a part too, as guests from other countries contact the hotel asking about the situation and asking ‘is it safe to come to Phuket?’ Social media groups from important markets have been buzzing with questions and inquiries after some ‘fake news’ postings and incorrect translations! This too has caused a few cancellations as the ‘worry’ factor deters some visitors from choosing Phuket.

 

The reality is, sadly, that you are much, much more likely to have a motorbike accident here than contact the virus – any virus – here in Phuket.

We are also pleased to see the Thai Government monitoring, and doing their best to crack down on such fake and irresponsible news. Reliable local media, too, are playing a very important part in this, posting facts rather than fiction.

 

Guests contact hotels in the first instance for information (even during ‘normal’ times if such times still exist!) so us hoteliers are doing our best to play an important part in sharing correct updated information which has been sent to us from the authorities.

 

As the situation continues, may we wish all our Chinese friends and partners strength and support during this time. We are still here and ready to welcome you back when the current ‘panic’ has passed.

 

Source: https://thethaiger.com/news/opinion/the-knock-on-effect-coronavirus-hits-phuket-hotels

 

 

-- © Copyright The Thaiger 2020-02-04

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[DrTuner]

'many hotels and resorts might look at their market mixes (as we are doing) and continue to diversify, looking specifically at merging markets to Thailand and aim for a more balanced business base (if there is such a thing)'

 

Too late. The Chinese hordes drove away the others and they ain't coming back. Thailand shot both feet with a bazooka by siding with China.

Edited February 4, 2020 by DrTuner

[GeorgeCross]

this has been a party political broadcast for the phuket tourism department

 

keep calm and carry on

 

 

[RotBenz8888]

1 hour ago, webfact said:

The reality is, sadly, that you are much, much more likely to have a motorbike accident here than contact the virus – any virus – here in Phuket

 Yes, if Thai people took the high accident rate as serious as the corona virus, tourists would probably be much safer on the Phuket roads.

[Somtamnication]

To that hotel professional: Somnamna! It is idiotic to put all of your marketing eggs into one basket. Time to pay the piper.

[J Town]

Quick, raise the rates to make up for the losses!

[DrTuner]

20 minutes ago, J Town said:

Quick, raise the rates to make up for the losses!

That'll be 500,000baht per night in a backpacker flophouse then, khopkunkhaaaaaaaaaaaaaa.

[madmitch]

A major problem for many hotels is that they have gone practically 100% Chinese. Some may not originally have planned it but there is no doubt that Chinese tourists in large numbers are a turn-off to Western tourists and this actually makes the diversity that is suggested in the article difficult to achieve. Others, however, have newly opened specifically to cater for Chinese tour groups, often in areas that would not attract typical beach tourists. They are really going to be hit hard.

 

It's tough. From what I can see hotels that cater almost exclusively to the Russian market are doing OK but the few that still cater mainly for Scandinavians seem to have been struggling all season.

 

The positives are that the traffic is better and I might just be able to start recommending day-trips again!

[Deli]

Oversupply in rooms, even with the Chinese coming. Endless construction and overcharging for certain things.

Genius people did the planning, driving out real quality tourist to welcome people, you can't mix with Westerners.

Pay they price now, clowns.

[RichardColeman]

16 hours ago, webfact said:

from the MICE (Meetings Incentives Conferences Exhibitions)

More RATS (Rip-off All Tourists Show) than Mice

[RichardColeman]

I wonder if they are adjusting their prices to make up for the loss ? Had two sets of motorbike taxis on Monday outside the malls in Pattaya adding a new 20% to their usual 100 baht. Who got angry when we walked away and tried to reduce their price. Our journey home was made via a couple outside a 7/11 that were half the price in the end and wanted business.

 

Moral : Farang are not stupid (unless completely drunk, after which all bets are off)

[ChipButty]

A problem at the moment for tourist who are already here their flights are being re scheduled one guest yesterday they have to stay an extra 4 days it's ok we can accommodate them but Im thinking what if people dont have the extra money can they claim on their insurance?

Their flight is not going to China, Phuket to Korea to Russia

[Isaan sailor]

Less is more, Thailand.  Stop thinking China can save you.  

[madmitch]

29 minutes ago, ChipButty said:

A problem at the moment for tourist who are already here their flights are being re scheduled one guest yesterday they have to stay an extra 4 days it's ok we can accommodate them but Im thinking what if people dont have the extra money can they claim on their insurance?

Their flight is not going to China, Phuket to Korea to Russia

Travel insurance is an interesting one. It would very much depend upon the policy wording. Travel insurance may include a daily amount payable following flight cancellations but the policy may well exclude claims resulting from epidemics and/or pandemics. My guess is that most, but not all, travel insurance policies would not pay out for enforced extended stays as a result of coronavirus but that is a guess as even a sad insurance man like me has better things to do than read random insurance wordings!

[ChipButty]

2 minutes ago, madmitch said:

Travel insurance is an interesting one. It would very much depend upon the policy wording. Travel insurance may include a daily amount payable following flight cancellations but the policy may well exclude claims resulting from epidemics and/or pandemics. My guess is that most, but not all, travel insurance policies would not pay out for enforced extended stays as a result of coronavirus but that is a guess as even a sad insurance man like me has better things to do than read random insurance wordings!

Yes the "Wording"

[Skeptic7]

Tickles me pink! 

[kingstonkid]

The good news for this is as I have said the strong will survive but a lot will be shut down.  Thai tourism almost needs to put a stop on any new hotel licences.

[DrTuner]

13 minutes ago, kingstonkid said:

Thai tourism almost needs to put a stop on any new hotel licences.

Chinese don't need any licences, just buy condos and rent them illegally short term. Money stays in China, all the negatives go to Thailand.

[ChipButty]

On 2/5/2020 at 7:55 PM, DrTuner said:

Chinese don't need any licences, just buy condos and rent them illegally short term. Money stays in China, all the negatives go to Thailand.

If they are renting out condos via Airbnb the money goes wherever you want it to go never going back to China PayPal is one option 

[cyril sneer]

On 2/4/2020 at 5:42 PM, J Town said:

Quick, raise the rates to make up for the losses!

they've actually done this

 

planning to cancel my trip now

[xylophone]

On 2/4/2020 at 3:24 PM, webfact said:

the island really does need our Chinese visitors to return as they keep so many locals in jobs and our shopping malls open, etc. 

Especially those jobs that include cleaning up the spit from the shopping mall floors!!

[iLuvThai]

On 2/5/2020 at 8:57 AM, ChipButty said:

Yes the "Wording"

And I can guarantee you that 99.9% chances are that "wording" is not going in your/our favor. 

 

I personally have had my itinerary updated since this coronavirus hit, and now when I leave Bangkok at the end of April I have 2 stops in China before heading off to Canada. Initially their was only 1. I am waiting for my booking agent to get back to me to see if I can change the flight details to not include China. I am guessing that I will be losing my return flight and buying a completely new itinerary. ✌️

[ChipButty]

Im just looking on airbnb and it is saying property views are down 50% although 20% more properties are available not looking good for low season

[DrDave]

For all of those people who have recently purchased a rental pool condo with a "guaranteed" annual return of 7-10%, good luck with receiving your payout. Those "guaranteed" returns come mostly from the profit the developer makes from renting out your unit. If your guaranteed return is calculated as gross receipts minus administrative and maintenance costs, then you'll most likely receive nothing after the developer takes his cut.  Even if the return is calculated on gross receipts only, there are several tricks developers can employ to weasel out of paying a return when occupancy rates are low.

 

People have been warned about this scam for years, and now it looks like anyone purchasing one of these units and depending upon a return on their investment will be sorely disappointed.  

[cyril sneer]

I just did a new search on a hotel I had booked for a week and it's gone down significantly in price, so cancelled and re-booked 

 

air asia flights have gone down slightly too

[ChipButty]

1 hour ago, cyril sneer said:

I just did a new search on a hotel I had booked for a week and it's gone down significantly in price, so cancelled and re-booked 

 

air asia flights have gone down slightly too

Flights from CM to Phuket have huge discounts

[BritManToo]

On 2/5/2020 at 8:16 AM, ChipButty said:

A problem at the moment for tourist who are already here their flights are being re scheduled one guest yesterday they have to stay an extra 4 days it's ok we can accommodate them but Im thinking what if people dont have the extra money can they claim on their insurance?

Worse, what if their VISA expires.

[ChipButty]

3 minutes ago, BritManToo said:

Worse, what if their VISA expires.

My friend was down the immi last week and he said a big line of Chinese in there

[xylophone]

On 2/16/2020 at 9:11 AM, ChipButty said:

Im just looking on airbnb and it is saying property views are down 50% although 20% more properties are available not looking good for low season

Caught up with a friend yesterday who has just changed hotels because he can now get a room for less than 1200 baht, which was previously almost double that. Apparently the advertised rate was around 2000 baht per night, so he went online through something like a Agoda and got this deal.

 

Not only that he managed to get one of the larger rooms, which was very much to his liking, and as it is just off rat-u-thid road, he is within walking distance of Bangla and Jungceylon.

 

So as you say, things are not looking good for the low season, but you will still find smaller hotels and even larger ones being built at this very moment in time.........

 

PS. Forgot to add that this price includes a free breakfast!!

Edited February 18, 2020 by xylophone

[ChipButty]

52 minutes ago, xylophone said:

Caught up with a friend yesterday who has just changed hotels because he can now get a room for less than 1200 baht, which was previously almost double that. Apparently the advertised rate was around 2000 baht per night, so he went online through something like a Agoda and got this deal.

 

Not only that he managed to get one of the larger rooms, which was very much to his liking, and as it is just off rat-u-thid road, he is within walking distance of Bangla and Jungceylon.

 

So as you say, things are not looking good for the low season, but you will still find smaller hotels and even larger ones being built at this very moment in time.........

 

PS. Forgot to add that this price includes a free breakfast!!

One hotel that I know was offering 73% discount and this place is one year old when I drove by the other day it looked closed down and it was a nice place 600 million baht