Thailand, 47% of hotels expected to close in the next three months

[webfact]

 

By Joe Cusmano 

Guest Writer

 

The surge of the pandemic in Thailand is beginning to start lining up some bigger casualties. Thailand was preparing to start opening up to international tourism and the new surge of Covid-19 could potentially set the plans back.

 

According to a recent survey of Thailand’s hotel industry, nearly half of all hotels could close in under three months. According to a study published by The Nation Thailand, 47% of hotels have enough cash to last no longer than three months.

 

The survey is focused on the Bank of Thailand’s April 2021 trust index of hotel business operators, which surveyed 188 hotels nationwide from April 12-26. Thirty of the hotels are alternative state quarantine (ASQ) facilities, according to the survey.

 

Full story: https://www.traveldailymedia.com/thailand-47-of-hotels-expected-to-close-in-the-next-three-months/

 

-- © Copyright Travel Daily 2021-05-12

 

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[WineOh]

3 minutes ago, webfact said:

According to a recent survey of Thailand’s hotel industry, nearly half of all hotels could close in under three months

And the other half will be filled with Chinese group tours.

I'm taking my tent the next time I go on holiday.

Edited May 12, 2021 by WineOh

[ThailandRyan]

How many have already closed.  I know the Aetas chain has closed the Lumpini hotel, with its restaurants over 15 months ago, and there are several others around us in Sathorn that have closed as well.  Amazing that they can keep them in a suspended state for so long.  Looks like there will be properties for some big spenders to buy when the time is right. 

[kynikoi]

All the hotels near me and upper Central Bank are shuttered.

 

What I find absolutely a mystery is how these hotels and especially condo developers have not been foreclosed upon.

 

Especially the condo developers no one has such deep pockets that they can sit on 15 or 20 multiple hundred unit condos literally for five or six years.

 

I think that the the government is backstopping a lot of the big money and I believe that for certain individuals in crony capitalism that loans have been frozen.

 

As a point of fact tourism has not been good for years even before this covid thing hit

[RotBenz8888]

9 minutes ago, webfact said:

Thailand was preparing to start opening up to international tourism

Based on TAT fantasy arrival numbers... 

[MadMac]

That's news from last year?

[ourmanflint]

I hope this doesn't affect the Thai baht

[ozz1]

if and when tourism resumes if the baht remains high no one will come anyway its all about value for money no matter how rich the tourists are 

[MadMac]

4 minutes ago, ourmanflint said:

I hope this doesn't affect the Thai baht

 

The Baht will get stronger, they do not print money like the FED or ECB here aka massive increase of money supply = inflation. Good thing.

[RichardColeman]

16 minutes ago, webfact said:

According to a recent survey of Thailand’s hotel industry, nearly half of all hotels could close in under three months. According to a study published by The Nation Thailand, 47% of hotels have enough cash to last no longer than three months.

In all seriousness , at what point do you just say to hell with it and open up to all to save society and jobs ? Thailand is being destroyed more through lockdowns than deaths

[sencelebi]

20 minutes ago, WineOh said:

And the other half will be filled with Chinese group tours.

I'm taking my tent the next time I go on holiday.

That doesn't mean those hotels will be demolished. 

[bkk6060]

Due to the new Covid-19 surge, 56 establishments recorded a 20% drop in liquidity compared to the previous month, while 47% said their liquidity situation could keep their hotels open for less than three months.

In addition, 46% of hotels were open as normal, while 13% had temporarily closed their doors, according to the survey. The majority of the hotels that have closed are in the southern area and catered to international visitors.

 

I guess there is a difference between closed and out of business.

Seems to me about over 50% closed now.

 

[Thomas J]

It takes decades to build up a tourism industry and the businesses that prosper from it.  It takes only months to severely cripple it for decades.  Even if there was a cure tomorrow, many businesses will lack the financial ability to re-open.  They tried to stay afloat for as long as possible.  So was the "cure" worse than the disease?  I guess that depends on your perspective.  If you were a person who theoretically was prevented from contracting a severe case of Covid - Yes.  If you were an employee who lost their job or business owner whose business went bankrupt - No. 
 

 

[placeholder]

4 minutes ago, Thomas J said:

It takes decades to build up a tourism industry and the businesses that prosper from it.  It takes only months to severely cripple it for decades.  Even if there was a cure tomorrow, many businesses will lack the financial ability to re-open.  They tried to stay afloat for as long as possible.  So was the "cure" worse than the disease?  I guess that depends on your perspective.  If you were a person who theoretically was prevented from contracting a severe case of Covid - Yes.  If you were an employee who lost their job or business owner whose business went bankrupt - No. 
 

 

Do you actually believe that tourists are going to want to come to a place that is experiencing covid running rampant? 

[petedk]

1 hour ago, WineOh said:

And the other half will be filled with Chinese group tours.

I'm taking my tent the next time I go on holiday.

And how many will be bought up by Chinese gangs?

I know they go for the property market here.

[Pattaya Spotter]

Is that 47% of the 47% of hotels still open or 47% of the hotels pre-pandemic?

[Pattaya Spotter]

1 hour ago, WineOh said:

And the other half will be filled with Chinese group tours.

I'm taking my tent the next time I go on holiday.

Why not...they've got a strong currency and a burgeoning middle-class; things that are declining in most of the West.

[Pattaya Spotter]

1 hour ago, kynikoi said:

 

I think that the the government is backstopping a lot of the big money and I believe that for certain individuals in crony capitalism that loans have been frozen.

You talking about the Bank of Thailand or the US Federal Reserve?

[Pattaya Spotter]

1 hour ago, ozz1 said:

if and when tourism resumes if the baht remains high no one will come anyway its all about value for money no matter how rich the tourists are 

"No one will come" as Thailand posted record tourist numbers year after year pre-covid, regardless of the value of the baht. It seems like most members just post the first thing that comes into their mind.

[Pattaya Spotter]

1 hour ago, MadMac said:

 

The Baht will get stronger, they do not print money like the FED or ECB here aka massive increase of money supply = inflation. Good thing.

Yep...makes all my baht based assets more valuable and makes travel cheaper when I visit benighted Europe or the US.

[clivebaxter]

11 minutes ago, Pattaya Spotter said:

Why not...they've got a strong currency and a burgeoning middle-class; things that are declining in most of the West.

Some countries with more sense of protecting their own have stopped the Chinese buying property eg New Zealand. Unfortunately they stopped all foreigners doing it. When I sold my house in Hamilton I was not able to buy another due to the ban brought about by the Chinese trying to buy everything up.

[connda]

2 hours ago, webfact said:

According to a recent survey of Thailand’s hotel industry, nearly half of all hotels could close in under three months. According to a study published by The Nation Thailand, 47% of hotels have enough cash to last no longer than three months.

That will be spun as a victory for Thai tourism by the TAT.
"Tourism is recovering!  53% of the Thai hotels are open!!!"

[86Tiger]

3 hours ago, sencelebi said:

That doesn't mean those hotels will be demolished. 

 

 

They may as well be.  How long will it take for a closed hotel to be over taken by mold/mildew in hot/humid Thailand.  It will take more cash to clean & refurbish than start over.

 

 

If not cleaned up no one is going to stay in a molding stinking place.  Well, I am not, sure there are others that may not mind.

 

 

[MasterBaker]

Thailand do not need so many hotels anyways, there is no way tourist numbers will ever be the same as before. not just in thailand

[ChipButty]

I would have thought the figure would be a lot higher, Im sure it is in Phuket and take into account the un licensed ones 

[Jeffr2]

In the big tourist hot spots, the number of closures is way more than 47%.  Closer to 90%. 

 

I'm trying to make reservations now.  Several that I stayed at last year are now closed.  Sucks.

 

@Thomas J Without the lock down, millions more would be dead.  The world would be in much worse shape.  That's been proven.  Just look at Brazil.  In the end, lock downs save lives and the employees of closed businesses.  We'll get through this.  Just look at China.  Or the US.  The economy is coming back nicely.

[BestB]

About 6-8 months ago, stats said around 80% of budget places have closed down, I am guessing new 40% would be from the rest standing . Leaving only international chains standing .

 

so question is, once thailand opens where would tourists stay and at what price 

[ChipButty]

4 minutes ago, BestB said:

About 6-8 months ago, stats said around 80% of budget places have closed down, I am guessing new 40% would be from the rest standing . Leaving only international chains standing .

 

so question is, once thailand opens where would tourists stay and at what price 

Dont forget the staff thats needed who wont have been vaccinated 

[Jeffr2]

12 minutes ago, ChipButty said:

Dont forget the staff thats needed who wont have been vaccinated 

They're doing a pretty good job of jabbing staff in Phuket and Samui.  Many.  And have started in Pattaya also.  Front line workers and those in the hospitality biz are first up.  Along with the elderly....

[hotchilli]

18 hours ago, webfact said:

According to a recent survey of Thailand’s hotel industry, nearly half of all hotels could close in under three months. According to a study published by The Nation Thailand, 47% of hotels have enough cash to last no longer than three months

Shame Thailand doesn't have a vaccine programme... it could have been reopening by now... 

But hey, Prayut has an in-house plan.