Hospitality industry… where your workplace is your home

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The Covid-19 epidemic has affected everyone on the planet. It continues to do so and will impact the way we live our lives for a long time to come. Some people are fortunate in that they were able to WFH (work from home) although the quality of the work they were able to provide suffered to a greater or lesser degree.

 

Marketing companies were able to continue operations without too many problems. Educators were able to talk to their students via Zoom or Google Meet… but it hasn’t been perfect… for two years students have suffered from not being able to grow together with their peers, to learn the important social skills that are an integral part of human development.

 

The hospitality industry, however, does not have a WFH option. It has been decimated by the strictures that had to be imposed in the effort to keep the dreaded virus at bay. Hotels both large and small were forced to close their doors, as were restaurants, cafes, music venues and pubs. Many of these establishments over the last two years have had to shut up shop for good, as at least 80% of their revenue had all but disappeared. Covid-19 has terminated many businesses in the same way that it has terminated lives.

 

Whenever you think about holidays, and travelling away from your home, the first thing that you think about is where you are going to stay. It’s usually a resort, hotel, or guest house. These businesses have suffered greatly in Thailand over the last two years, and many of the people that work in them have also lost their livelihood… front office staff and receptionists, bellboys and room maids, waiters and waitresses, chefs and kitchen staff. All either furloughed or laid off. Then there are the ancillary workers that support hotels: taxi drivers, tour guides, concessionaires, musicians, etc. In Thailand the tourism industry across the board accounts for up to 30 million jobs, out of a total population of nearly 70 million people, so it is not difficult to imagine the disastrous effect Covid-19 restrictions have had on their lives, and on Thailand.

 

Tourists, when they visit Thailand see the bright lights of Bangkok, the traffic gridlocked streets, the neon nightlife, the packed beaches, crowded restaurants, glistening golden temples and smiling faces. They think of Thailand as not a lot different from their own country, apart from the always gorgeous tropical climate. But they do not see beneath the surface. In Thailand there is a vast chasm between the rich and the poor.

 

The minimum national wage in Thailand, set by the government, is about 14,500B per month (322GBP,  or 436 USD). So, it might surprise you that Thailand has become known as ‘The Land of Smiles’ because you yourself might find it hard to smile on such an income. Thailand’s citizens, though, are not tourists, and they don’t spend their wages in the lavish way that visitors to their country do, on their much looked forward to annual holidays. Thailand is still very affordable on a cost of living basis, and a Thai family can still have a good life, even if they are on minimum wage. If you get to talk to an expat who has friends or family ‘upcountry’, next time you visit take few days to visit rural Thailand, you will be surprised at what you see. I can guarantee that you will be made welcome in the villages… you are sure to be beckoned along to join a Thai family as they eat together outside their house. Hope you like the spicy food!

The villages upcountry is where most of the workforce in Bangkok come from, and the population of the city was reduced by several million after the onset of Covid in 2019. They all returned home to live with their families, unable to afford the rent or the higher living expenses in the city. Now, though, they are trickling back, and the hotels are happy to welcome their return. These people will have been trained in their various jobs or professions by the hotels, and as soon as they open up again, they will be good to go. As you will know if you have ever stayed in a hotel in Thailand, the staff are service oriented, friendly, always seem happy, and are always ready to brighten up your day with that ubiquitous beaming Thai smile.

 

The year before the Covid pandemic hit – 2019 – was a record breaker for Thailand and the Kingdom welcomed almost 40 million international visitors. This was reduced to around 6 million in 2020, but as we reach the end of 2021 the country is starting to open again.

 

We talked to industry expert Khun Marisa Sukosol Nunbakdi about the reopening of Thailand. She is a hotelier and is the current President of the Thai Hotels Association.

 

Khun Marisa Sukosol Nunbhakdi – President of the THA

 

Khun Marisa, you come from a family of hoteliers in Thailand, and you are also the current President of the THA. I would like to thank you for taking time out of your busy schedule for this interview. Please feel free to answer as fully as you like. I assure you I will not interrupt you. I am looking forward to gaining the benefit of your experience of the hospitality industry. I would like to ask you a few questions, if I may.

 

The measures that had to be taken to control the spread of the Covid-19 virus have decimated the hospitality industry. As we reach the point where 50% of the Thai population has received two doses of the vaccine, and Thailand has started to open up to international arrivals again, what percentage of hotels, resorts, and guest houses are likely to reopen, and what changes are we likely to see? In Bangkok, and in other areas.

 

Khun Marisa: There was hope for good recovery for the domestic market towards the end of 2020. However, when the third wave came, after Songkran, Thai New Year, of 2021 – it resulted in a semi-lockdown that began in July. Many hotels reached rock bottom, and even the larger properties had to seriously review their financial standing. At the time it was estimated that 50% of hotels were closed and an accompanying 50% of the workforce had left the industry.

 

With the easing of restrictions that began in October of this year, hotels began reopening once more to welcome back domestic tourists, especially those properties in destinations close to Bangkok, such as Pattaya, Hua Hin, and Khao Yai. Now, with the lifting of quarantine restrictions for vaccinated international travellers originating from 64 countries, a lot more hotels are reopening. Although it is still true that even with the relaxation of quarantine regulations, that many hotels in key tourist provinces remain closed, especially those in the 3 to 4 star categories that cater to the group travel sector.

 

Results of THA’s monthly survey conducted in October showed that 67% of hotels have reopened, while 8% remain temporarily closed. And results have shown that nearly 60% of the workforce in the hotels surveyed are now back in employment.

 

The established hotel groups such as Accor, Minor, Hilton, and the larger 5 star properties have probably been able to weather the storm, albeit after taking a large financial hit. But approximately what percentage of the smaller hotels or guest houses have not been able to survive in Thailand? And how many in number? In what way were the ones that survived able to carry on? Change of focus? Sale of assets? Diversification?

 

Khun Marisa: Ironically, the micro SMEs are more agile and resilient. They require less funds to open, as they have less operational costs, and fewer staff. They closed temporarily and can easily reopen once demand returns. Resilience is based on the owner’s reserve of funds, ability to obtain loans, and having the required customer demand to cover fixed costs. Mid sized hotels that are independently owned and operated and carry a sizable staff number were hardest hit due to salary commitments. It was difficult for owners with large debt obligations to survive, no matter the size of hotel. Hotels with such owners have either sold their assets or ceased operations.

 

Full Story: https://expatlifeinthailand.com/travel-and-leisure/hospitality-industry-where-your-workplace-is-your-home/

 

-- © Copyright Expat Life in Thailand 2022-01-14

 

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[KhunLA]

"The minimum national wage in Thailand, set by the government, is about 14,500B per month (322GBP,  or 436 USD"

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