Businesses on Khao San Road struggle to serve customers

[snoop1130]

Flickr/Robbin Hood

 

The foreign tourists are flocking back to Bangkok’s Khao San Road, but they may notice that service is a bit slower than normal. Businesses on the popular tourist thoroughfare, like just about all tourism destinations, are struggling to cope with staff shortages that are hampering their ability to cope at the busiest time of the year.

 

Khao San’s hotels, bars, restaurants and other venues are once more open for business, following a closure of nearly 3 years, due to the pandemic. And the good news is that demand is almost back at pre-pandemic levels. The bad news is staff numbers are not.

 

Thailand’s hospitality industry has been decimated by the pandemic, initially by all the hotels and tourism infrastructure being closed down, and now, because the former staff don’t want their old jobs back.

 

The president of the Khao San Road Business Association points out that as most employees either left or lost their jobs at the start of the pandemic lockdown, businesses now face a real challenge.

 

According to Sanga Rueangwattnakun, businesses on Khao San are reporting that demand is back to nearly 95% of pre-Covid levels. He adds that normally at this busy time of year, around 70% of tourists on Khao San Road are from Western countries. However, this year, he says nearly every tourist staying in the area is a Westerner.

 

Sanga believes the cost-of-living crisis in Europe is behind the increase, as rising energy costs have made it too expensive for many Europeans to spend winter in their own countries.

 

Spending the winter in more affordable accommodation, in a warmer climate, is an option that makes sense for many, and Sanga believes the numbers visiting Khao San Road will continue to rise in the lead-up to the New Year holiday period.

 

It’s not just Bangkok facing a labour shortage, as Phuket has made no secret of the fact that it too is struggling. Tourism businesses on the island recently confirmed they have over 17,000 vacancies to fill.

 

Meanwhile, the number of tourists returning to the island is rising and is expected to continue doing so during the first quarter of 2023.

 

Full Story: https://phuket-go.com/phuket-news/national-news/businesses-on-khao-san-road-struggle-to-serve-customers/

 

-- © Copyright Phuket GO 2022-12-21

 

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[Elkski]

Maybe many are now working online

[BritManToo]

56 minutes ago, snoop1130 said:

Spending the winter in more affordable accommodation, in a warmer climate, is an option that makes sense for many, and Sanga believes the numbers visiting Khao San Road will continue to rise in the lead-up to the New Year holiday period.

They still need to heat their homes and the air fares are very expensive. I can't see any saving to be made by a western foreigner coming here for two weeks unless they were homeless in the west. 

[Pique Dard]

4 hours ago, snoop1130 said:

the former staff don’t want their old jobs back.

wrong! they want better pay!

[timendres]

As efficiently as Thais adapt, and it impresses me often, this is an organic problem that takes time to resolve. With the wages paid for these service workers, they cannot afford to be commuting across Bangkok for this job every day. They need to be in affordable accommodations near Khao San. When covid hit, most returned home to ride out the storm. The problem is that most of these folks went through their savings, and now they need to have a deposit and one month's rent to return, as well as the first month's expenses while waiting for a paycheck. Not easily acquired.

[Northstar1]

5 hours ago, BritManToo said:

They still need to heat their homes and the air fares are very expensive. I can't see any saving to be made by a western foreigner coming here for two weeks unless they were homeless in the west. 

Yes, airfares are thru the roof compared to pre Covid. I can’t believe how much they have gone up. For Canadians the cost of airfare alone to Thailand gets me a direct flight and holiday to a much closer destination in the Caribbean or similar.

[jcmj]

The Thais are very thrifty and most figured out a way to make it through Covid and now don’t want to go work 6 days a week for a <deleted>ty salary. If the owners want more staff then pay up. 

[mjakob007]

10 hours ago, snoop1130 said:

Sanga believes the cost-of-living crisis in Europe is behind the increase, as rising energy costs have made it too expensive for many Europeans to spend winter in their own countries

Interesting hypothesis - Not

 

Most of the travelers we get in Thailand have not been able to travel for 2-3 years and hence going all the way.

This may not be sustainable due to loss of jobs in the west from recession, high airfares, travellers burning their savings during the past 2-3 years.  

[nobodysfriend]

11 hours ago, snoop1130 said:

Sanga believes the cost-of-living crisis in Europe is behind the increase, as rising energy costs have made it too expensive for many Europeans to spend winter in their own countries.

Time for Immigration to create a new easy visa to attract those ' stay all winter ' long term tourists then . A 6 month stay without paperwork , just a criminal background check would certainly facilitate their decision to stay ( and spend ...) 6 winter month here .

[runamok27]

Looks like enough of the service workers to hurt the industry figured out there is no benefit to travelling to tourist destinations and working for garbage wages. What I find strange is that, even with these crappy wages, Thailand is very expensive. Not to mention, most of the natural beauty of Thailand has been destroyed by too much tourism. 

[Mikeman]

There is no shortage of workers. There is a shortage of young workers with degrees (a degree is necessary for most jobs). If a Thai is older than 35, they are unemployable. The idea is that young workers are easier to control. This is a slave economy.

[Dexxter]

12 hours ago, snoop1130 said:

rising energy costs have made it too expensive for many Europeans to spend winter in their own countries.

But they can afford an expensive return airline ticket?

[sandyf]

7 hours ago, Pique Dard said:

wrong! they want better pay!

Wrong. During the pandemic many returned home and either set up their own business or found other work. There was never any shortage of work, many factories were refurbished during that time.

A town not very far from us doubled in size during the pandemic, bit of a pain about 15 minutes longer to get to the airport.

[sandyf]

12 minutes ago, Dexxter said:

But they can afford an expensive return airline ticket?

Not that expensive when the government pays a large chunk of it. In the UK pensioners were given £510.

For someone living alone, not a bad idea to shut everything down for 3 months and go away.

[Jiggo]

2 hours ago, jcmj said:

The Thais are very thrifty and most figured out a way to make it through Covid and now don’t want to go work 6 days a week for a <deleted>ty salary. If the owners want more staff then pay up. 

Which will be passed on to the customers via service charges....

[ikke1959]

who want to work for 350 THB a day of 12 hrs?? How much do the businesses earn??? They can afford more but the greed of the owners..........People can't live with 400 THB a day surely not in Bangkok

[Tom H]

Thai Friendly more money????, less work, more sanuk and maybe find falang pay b(l)ocken washing machine and sick bufallo ho(s)pital. Khaaaaaab. Me keekiat mag mah tam ngahn too much.

[sandyf]

23 minutes ago, Jiggo said:

Which will be passed on to the customers via service charges....

The same as everywhere else, almost unthinkable.

[Thomas KH]

Hmmmm... slow business. Seems like nobody needs a Bachelor of Science from Harvard.. errr.. Oxford. Or an instant TEFL or that C-Card without ever having dived..  

[BigStar]

12 hours ago, BritManToo said:

They still need to heat their homes and the air fares are very expensive. I can't see any saving to be made by a western foreigner coming here for two weeks unless they were homeless in the west. 

Aren't their parents heating their homes and helping with the air fares?

[Jack Hammer]

8 hours ago, timendres said:

As efficiently as Thais adapt, and it impresses me often, this is an organic problem that takes time to resolve. With the wages paid for these service workers, they cannot afford to be commuting across Bangkok for this job every day. They need to be in affordable accommodations near Khao San. When covid hit, most returned home to ride out the storm. The problem is that most of these folks went through their savings, and now they need to have a deposit and one month's rent to return, as well as the first month's expenses while waiting for a paycheck. Not easily acquired.

A lot of former employees have not forgotten how former employers threw them on the scrap heap when the Covid first of all hit Bangkok. Also slave labour conditions, and paltry  pay.

 

8 hours ago, timendres said:

As efficiently as Thais adapt, and it impresses me often, this is an organic problem that takes time to resolve. With the wages paid for these service workers, they cannot afford to be commuting across Bangkok for this job every day. They need to be in affordable accommodations near Khao San. When covid hit, most returned home to ride out the storm. The problem is that most of these folks went through their savings, and now they need to have a deposit and one month's rent to return, as well as the first month's expenses while waiting for a paycheck. Not easily acquired.

conditions, and paltry  pay

[PingRoundTheWorld]

Complete nonsense - Bangkok is severely lacking tourists - nightlife venues are half-empty and nowhere near what they used to be in high season pre-Covid. The 2am curfew has decimated Bangkok nightlife tourism and it will never be back to what it used to be unless they relax this ridiculous curfew.

[new2here]

3 hours ago, mjakob007 said:

Interesting hypothesis - Not

 

Most of the travelers we get in Thailand have not been able to travel for 2-3 years and hence going all the way.

This may not be sustainable due to loss of jobs in the west from recession, high airfares, travellers burning their savings during the past 2-3 years.  

I agree.. I highly doubt that one of the leading drivers to travelers choosing to come to TH is, on large part, due to the much higher home heating and energy costs…

I suspect that right now, we’re still seeing that “pent up travel demand” that’s finally been released… i suspect that’s more the driver that energy costs back home would be.

[thaibeachlovers]

9 hours ago, Pique Dard said:

wrong! they want better pay!

Beat me to it. Given many will have found other work, they will need more than the pitiful wages they used to work for to return.

[thaibeachlovers]

27 minutes ago, PingRoundTheWorld said:

Complete nonsense - Bangkok is severely lacking tourists - nightlife venues are half-empty and nowhere near what they used to be in high season pre-Covid. The 2am curfew has decimated Bangkok nightlife tourism and it will never be back to what it used to be unless they relax this ridiculous curfew.

No doubt they are all visiting temples, eating street food, having massages and tucked up in bed by 10 pm.

[Stargeezr]

Yes folks it is December, and is usually considered to be the High of High tourist season.

  In mid January, there will be the long stayers that will be in Thailand until Spring, or March or April

when their countries will have warmer weather.  By February the number of the short stay tourists will have gone back

home and only the expats and other long staying people will be in Thailand. This is a yearly event, so

why are some people showing surprise? Just wondering?

[RT555]

I think most all of you to LEAVE YOUR WESTERN THOUGHT PROCESS OUT OF THIS........ you know nothing unless you are working here. Well, I am and all of you need....well...... you know.

[kingstonkid]

If Thai university students want to lower their loans why not get a job working as bar restaurant staff.  That is what most in the west do.

 

Wages are not an issue as much as people are at home in village and young people are too lazy and addicted to the phone

[finnomick1]

Khao San Road, been there done that and it didn't take very long.  I don't know what all the excitement is about it. If you are a bulk buyer of silver and jewelry fair enough but the rest I can leave. Overpriced and very mediocre,  but that's my opinion. 

[PeeJayEm]

2 hours ago, Jiggo said:

Which will be passed on to the customers via service charges....

Naturally. It's how inflation works. Nowhere is immune

 

1 hour ago, Jack Hammer said:

conditions, and paltry  pay

Indeed - for any thinking tourist, this is big dilemma of conscience.  Thailand operates like a slave economy with the people serving tourists paid a pittance. But the low cost / pricing is a large part of what keeps the tourists coming here.  When it gets to the extent that migrant workers are needed to fill the low paid jobs - and many of these left during covid - then the model is broken and Thailand just becomes like Qatar and other M.E. countries - exploiting foreign workers with no rights whatsoever in order to generate industry to keep immigration officers and business owners nicely paid.