Chiang Mai Hotels Hit Hard By Politics

[webfact]

HOSPITALIITY

Chiang Mai hotels hit hard by politics

By SUCHAT SRITAMA

THE NATION

Chiang Mai

CHIANG MAI: -- The political turmoil of recent months has seen the hotel business in Chiang Mai plunge, with many establishments operating at zero occupancy and some players putting their properties up for sale, operators said.

Phunut Thanalaopanith, president of the Thai Hotels Association's Upper Northern Region Chapter, said the average occupancy rate at major hotels in Chiang Mai dropped to between 10 and 20 per cent this month, from 50 per cent in June last year.

Some hotels that cater predominantly to foreign tourists are empty, while family-run businesses are hosting just a few guests per week, Phanut said.

To cope, many operators are changing their strategies by lowering prices and targeting the local market instead.

Phunut said foreign tourists, particularly those from Japan, Korea, Taiwan, China and Western countries, fear more violence could erupt, though countries have lifted the travel advisories warning nationals to avoid Thailand issued at the height of the crisis.

To lure tourists back to Chiang Mai, the association will launch a "Buy One, Get One Free" campaign in July and August.

More than 50 hotels, spas, restaurants and golf courses have joined the promotion, Phanut said.

"We're hoping this campaign will boost tourism by 20 per cent during the two months," he said.

Savika Phanitphisal, director of sales and marketing at the Small Group, which opened the Small Hotel Chiang Mai in September last year, said the hotel's revenue has fallen by about 20 to 25 per cent due to the political crisis.

Savika said the occupancy rate at some hotels in Chiang Mai fell to zero this month.

European customer numbers have fallen sharply due to the government warnings. Most of those who booked vacations cancelled their plans, and new bookings have dried up since the government used force to disperse the red-shirt protest in Bangkok and enforced a curfew in many provinces last month.

Customers from Asian countries such as Singapore and Malaysia still lack confidence in the Kingdom's security situation. Many agents in Singapore said they would not be promoting Thailand this year, as they do not think the political unrest will end soon.

"I think investors looking to build new hotels are having second thoughts. Many hotels have been put on the market," Savika said.

Most hotels in the North have resorted to pricing strategies, lowering room rates in an effort to lure customers.

Some five-star hotels in Chiang Mai town have dropped their rates to as low as Bt1,800 per night.

Savika doubted such promotions would work as long as tourists lack confidence in Thailand as a travel destination.

Tarun Kalra, executive assistant manager of Dusit D2 Chiang Mai, said the hotel had been hit by mass cancellations and group postponements due to the political conflict. The usual heavy bookings in the months ahead of June saw a sharp drop this year, he said.

"We have experienced cancellations and postponements in all segments of our business. Leisure travel almost immediately came to a standstill, while [only] a small share of business travellers continued with their plans. Meetings, incentives, conventions and exhibitions [MICE] groups postponed, and meeting planners quickly reacted by relocating to new destinations outside Thailand," he said.

Most banqueting functions and social parties at the hotel have been cancelled or postponed due to the curfew in Chiang Mai, but there have been some signs of that business is getting back to normal among the local community this month, he said.

Travellers are starting to reconsider their holidays and business destinations, as all travel advisories warning against travel to Thailand have been lifted.

"As a country we will rebound: The only question is how soon. Most five-star hotels in Chiang Mai are running at 20 to 25 per cent occupancy this month, with a 5 to 10 per cent increase expected in July and August," Tarun said.

He added that no new hotels are planned in the area in the near future, but investors remain excited about a new convention centre, as well as the Chiang Mai Wood project.

Dusit D2 Chiang Mai has seen minimal growth in the first five months of the year compared to the same period in 2009, Tarun said.

"Chiang Mai and Thailand do not deserve two continuous years of economic and political turmoil. There is a belief that business will bounce back stronger in the remainder of 2010."

To deal with the crisis, Dusit International, the parent chain of Dusit D2, has introduced a "Dusit Take 2" package offering special privileges at all Dusit hotels and resorts until the end of September.

The group has also introduced a new MICE Directory to lure business travellers, which will be distributed through regional offices, roadshows and tradeshows.

The group will also focus more on online marketing, with the launch of dusit.com planned for the third quarter, along with the opening of sales centres in China and India before the end of the year.

-- The Nation 2010-06-21

[gotlost]

No money,no tourist its a ghost town.

[frankman]

Here on Koh Phangan (island in the south=safe!) we have more people than normal at this time of the year.

Say "thank you" to the brainless red shirts to burn bangkok down.

Geee, I am so happy living in the south on a safe island and not in the red heardlands where there is no understanding what democracy really is or any understanding at all!!!

Good luck anyway to the guys up north,

but if people gonna come they want to stay safe and not get trapped in social unrest by red thugs!!!

And now they (the red's second generation ) want to start all over again!?!?

As I said GOOD LUCK up north in red brain(washed)dead country!

[sbk]

Wow, thats pretty nasty and doesn't do much towards the idea of reconciliation and working things out. I have lived in the South for many many years and would never consider making such a post.

Careful frankman, karma has a nasty way of coming back to bite you in the ass. Perhaps you might want to rethink your post

[frankman]

Wow, thats pretty nasty and doesn't do much towards the idea of reconciliation and working things out. I have lived in the South for many many years and would never consider making such a post.

Careful frankman, karma has a nasty way of coming back to bite you in the ass. Perhaps you might want to rethink your post

Karma stroke me already, sbk.

No worries.

Just wanted to say how sad I am about all this brain washing and make people hate and hurt eachother.

And yes I am angry about burnin' bkk down,

Because it endangered many of my family and friends livehood.

I hope nobody is offended by that.

Love and PEACE!!! 

[frankman]

Wow, thats pretty nasty and doesn't do much towards the idea of reconciliation and working things out. I have lived in the South for many many years and would never consider making such a post.

Careful frankman, karma has a nasty way of coming back to bite you in the ass. Perhaps you might want to rethink your post

Karma stroke me already, sbk.

No worries.

Just wanted to say how sad I am about all this brain washing and make people hate and hurt eachother.

And yes I am angry about burnin' bkk down,

Because it endangered many of my family and friends livehood.

I hope nobody is offended by that.

Love and PEACE!!!   

But interesting,

to see,

nobody responding.

May be they ALL woke up,

and understand,

they were ,

standing, 

FOR THE WRONG COURSE!

[Rinrada]

Maybe if Thai airways CUT their prices by say 50% they might get a few punters turning up for a jolli...

ck....London- Chiang Mai =Return.....PENG Heart attack.....

[mtone9317]

Five star hotels in CM:

Last year I stayed in the very nice Amari Don Muang at $40 and the hotels in CM think they are going to get $60 a night in the off season, with all the State Dept warnings.

Good luck.

As for the Red Shirts. They are not brain dead, just a bunch of poor rice farmers from Northern Thailand, many I suspect do not even speak central Thai. My Lao friend here in Sacramento was going to got there and fight for them. I told him that it was suicidal, the red shirts had no military structure, no chain of command, no weapons, no supply line,and they were sure to get their behinds beat. Contrast that with the NVA 50 years ago.

Never fight a battle you know you are going to lose.

[frankman]

Less tourists, so we raise the prices,

hmm,

that makes sense.