Long weekend didn't help Koh Phangan - 10% occupancy only

[webfact]

Long weekend didn't help Koh Phangan - 10% occupancy only 

 

Picture: Thai Rath

 

The owner of a large resort on the holiday island of Koh Phangan in Thailand's south said the four day long weekend as replacement for Songkran did not help them one bit. 

 

Wipha Jongjit of the Maehaad Bay Resort said there was no change - they were in the grip of the crisis. 

 

The resort has 124 rooms and 90 staff and has been open for 30 years. 

 

Their income is now as low as 200,000 baht a month yet they have operating costs of a million or more. 

 

Half the staff have left through voluntary redundancy and the resort is using emergency funds to stay afloat. They are not eligible for government loans because of red tape. 

 

She warned that this was the worst situation ever faced by the business and that they could close if the situation doesn't improve soon. 

 

The main problem is the remoteness of Phangan in Surat Thani province and the fact there is no airport. People who come stay longer term and are not going to be there because of a long weekend. 

 

Residency this last weekend was at just 10%, no change from previously. 

 

Nanthawan Siriphokwat of the TAT said that throughout Surat Thani there was 17.38% occupancy, 26,931 guests who spent 127.77 million baht over the long weekend. 

 

Source: Thai Rath

 

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[Jimbo2014]

Frankly, if you are running a business in the tourist industry, unless you have access to 18 months operating expenses through a loan or through cash flow then your business is dead.  A victim of Covid.  The government seems unable to or unwilling to properly support the sector. 

[soalbundy]

Looks like a nice area. The way businesses are closing there could be a lot of 4 day weekends coming up, maybe next month will be better....or the year after.

[Lacrimas]

All back to the fields soon 

[steelepulse]

I'm just amazed at how all these tax paying businesses report their revenue so quickly to the TAT.

 

>>>Nanthawan Siriphokwat of the TAT said that throughout Surat Thani there was 17.38% occupancy, 26,931 guests who spent 127.77 million baht over the long weekend. 

[SupermarineS6B]

3 hours ago, Jimbo2014 said:

Frankly, if you are running a business in the tourist industry, unless you have access to 18 months operating expenses through a loan or through cash flow then your business is dead.  A victim of Covid.  The government seems unable to or unwilling to properly support the sector. 

Not a victim of Covid entirely, the government has done it's best to destroy tourism since they took power.....  This could all stop overnight with a bit of immagination......  Sorry but Army's are for protection, not government.......  

[khunPer]

A lot of the domestic tourists to neighboring Koh Samui comes by car – so many that ferry lines have been full up to long weekends, and some of the resorts actually busy – it's from the same two ports in Don Sak on the mainland that the ferries to Koh Phangan departs, and it's only about 30 minutes longer sailing time.

 

The article seems to report about one resort only. Perhaps those resorts, which are busy have some good offers. I saw one posting that he had booked normal-priced 2,000-3,000 baht rooms on Samui for only 650 baht. The 5-star resort next to me, on the beach where I live, offers one extra night free, for each night bought, i.e. 50 percent discount. I met a British lady on the beach saying that she and her husband were staying there, because it was so cheap for the quality. I get a bit around on the island, and many higher end resorts seems to have customers, some even had many guests this weekend, and lots of parked cars...????

[CALSinCM]

3 hours ago, Jimbo2014 said:

Frankly, if you are running a business in the tourist industry, unless you have access to 18 months operating expenses through a loan or through cash flow then your business is dead.  A victim of Covid.  The government seems unable to or unwilling to properly support the sector. 

However, when they go under there are billionaires waiting in the wings to buy the properties for a fraction of there worth.  Billionaires who are worth significantly more then before Covid.  Funny that, 'huh?

[crazykopite]

Amazes me how TAT can come up with figures less than 48 hours after the holiday weekend with regards to monies achieved and % of visitors once again all I can think is of that constant advert I keep seeing “Amazing Thailand “ my sides are hurting with laughter TAT need to visit Koh Phangan and walk around the town centre and look at all the shutters pulled down on shops that used to be very active in selling goods to the community.

[Tropicalevo]

I have stayed at this hotel every year (February) for the last 12 years. Lovely place. Lovely rooms and a 50 meter swimming pool next to the beach. So sad for them. They did a big expansion last year. Koh Maa is lovely as well.

I hope that they survive.

[hotchilli]

17 hours ago, webfact said:

Long weekend didn't help Koh Phangan - 10% occupancy only

Geography has a lot to do with that.. plus the extra travel cost and lost time on the road or at the airports.

[Jimbo2014]

13 hours ago, CALSinCM said:

However, when they go under there are billionaires waiting in the wings to buy the properties for a fraction of there worth.  Billionaires who are worth significantly more then before Covid.  Funny that, 'huh?

Exactly.  Like the 2008 crisis - these events only go to make wealth polarization worse.  Its a chance for fat cats to eat up the minnows as the fat cats get access to the easy credit.

[Jimbo2014]

14 hours ago, SupermarineS6B said:

Not a victim of Covid entirely, the government has done it's best to destroy tourism since they took power.....  This could all stop overnight with a bit of immagination......  Sorry but Army's are for protection, not government.......  

Agreed - its a confluence of so many factors, a poorly regulated and rampant tourist sector, massive environmental damage, particularly in recent years with the pollution apocalypse, a military dictatorship government deterring tourists.  The list goes on.

[josephbloggs]

On 9/8/2020 at 3:33 PM, steelepulse said:

I'm just amazed at how all these tax paying businesses report their revenue so quickly to the TAT.

 

>>>Nanthawan Siriphokwat of the TAT said that throughout Surat Thani there was 17.38% occupancy, 26,931 guests who spent 127.77 million baht over the long weekend. 

So you think they make up the low occupancy figures?   Most people here always blabbed that the TAT made up high figures.  Now they make up low ones?

Ever conceive that they might have better access to data than you?  I believe all hotels in the Thai Hotels Association report their occupancy figures regularly.  Why is it inconceivable they might have this data, and what would be the point of making it up?

[thaibeachlovers]

On 9/8/2020 at 5:30 PM, webfact said:

The main problem is the remoteness of Phangan in Surat Thani province and the fact there is no airport.

Hopefully the downturn helps keep an airport off the island. It's only been saved so far because it is harder to get to than Samui.

Long may Phangan be airport devoid.

[thaibeachlovers]

On 9/9/2020 at 1:25 PM, Jimbo2014 said:

Agreed - its a confluence of so many factors, a poorly regulated and rampant tourist sector, massive environmental damage, particularly in recent years with the pollution apocalypse, a military dictatorship government deterring tourists.  The list goes on.

The government does nothing to deter those arriving on visa exempt. They are probably the biggest earners for Thai tourism.

[3NUMBAS]

On 9/8/2020 at 9:24 AM, Lacrimas said:

All back to the fields soon 

with buffs galore

[3NUMBAS]

well well no tourists again we are all gobsmacked ..wait another 5 years for a trickle