Tourism Safety Fears Drop Chinese Tourism to Thai Hotels by 30%

[snoop1130]

File photo for reference only

 

In a revealing trend analysis, Thai hotels are anticipating a slowdown in foreign visitors for the third quarter of this year, with many expecting a notable decline in Chinese tourists due to safety worries.

 

According to the July 2025 Hotel Business Confidence Index survey, Thai hotels enjoyed an average occupancy rate of 58% in July, showing improvement from June thanks to the summer holidays in Europe. The Central region led with a 67% occupancy rate, followed by the South, which rose from 45% to 56%, and the North climbing from 29.2% to 41%.

 

However, despite this upswing, the sector faces challenges. Labour shortages persist, affecting service quality though not guest capacity. Hotels have adapted to the government’s 400-baht (approximately 400 THB) daily minimum wage by reallocating staff, hiring casual workers, and cutting costs on energy and supplies.

 

Thienprasit Chaiyapatranun, President of the Thai Hotels Association, highlighted concerns about decreased foreign arrivals this quarter compared to last year, particularly in Central and Southern regions. Chinese visitor numbers are expected to drop significantly, with nearly 30% of hotels forecasting a more than 30% reduction due to safety concerns. Additionally, 18% anticipate a 21–30% drop, while 19% expect an 11-20% decline.

 

Short-haul markets also face challenges, with 28% of hoteliers predicting an 11-20% decrease in visitors and 19% forecasting a reduction of over 20%.

 

Conversely, some growth is expected in the Northern regions for long-haul visitors, yet overall, a decline is anticipated: 27% of operators expect a drop of up to 10%, 21% foresee an 11-20% drop, and 16% anticipate a fall greater than 20%.

 

The government’s “Half-Half Thai Travel” domestic scheme offers little relief, with 47% of hotels believing it won't impact revenues. More optimistically, 28% expect a modest boost of no more than 5%, particularly in the Eastern region, where over a quarter foresee a 6-10% increase.

 

Thienprasit noted that safety perceptions, economic instability, and competitive pricing remain significant issues. He emphasised the pressure on four-star and higher hotels from foreign competitors, while three-star establishments face domestic competition.

 

As the sector navigates these turbulent times, it remains focused on adapting strategies to counteract the anticipated dips and maintain service quality despite external challenges.

 

  Adapted by ASEAN Now from The Nation 2025-08-15

 

[JoePai]

So a litle good news

[Will B Good]

 

 

Damn...this will mean room prices will see a significant price increase in order cover the lost revenue due to lower occupancy rates.