Bangkok hit hardest by dropping hotel occupancy rates

[webfact]

HOTEL DROPPED
Bangkok hit hardest by dropping hotel occupancy rates
Bamrung Amnatcharoenrit
The Nation

BANGKOK: -- The current political unrest appears to be having a negative impact on hotel occupancy rates and advance bookings this month in Bangkok and some provinces, a recent poll conducted by the Tourism Authority of Thailand (TAT) showed.

Overall, occupancy has dropped by 5 per cent compared with the same period last year, with Bangkok hit hardest with a drop of 25.5 per cent year on year, followed by 5.6 per cent in Nakhon Ratchasima, 5 per cent in Kanchanaburi and 4.4 per cent in Songkhla. However, arrivals in Chiang Mai and Chon Buri were still positive, showing an increase of 2.7 per cent and 7.9 per cent respectively during the period.

The TAT poll was carried out from November 21 to 28 on a sample of 600 business operators in six provinces, namely Bangkok, Chon Buri, Nakhon Ratchasima, Kanchanaburi, Songkhla and Chiang Mai. As many as 100 firms in each province were asked about their "confidence in tourism and if the political demonstration was having an adverse impact".

Of the respondents, 57.1 per cent said they had suffered from a drop in occupancy rates and advance bookings, while 31.6 per cent said their business performance was better in comparison with the same period last year.

As for the impact the political turmoil was having on tourism as a whole, 71 per cent of the respondents in Bangkok said it was very difficult to get around, while 72 per cent of those in Kanchanaburi said it was more difficult to sell their products. Operators in Nakhon Ratchasima and Chon Buri, meanwhile, said costs were on the rise.

As a survival tactic, 21 per cent of the respondents in Bangkok are giving away restaurant gift vouchers, while 69 per cent of the companies in the capital are calling on the government to guarantee their earnings if their businesses are hit by the political chaos. Most of the respondents also said they wanted the administration to continue promoting tourism. In addition, 79.8 per cent of them said they were confident that business would get better next year.

Apichart Intharapongpan, TAT's deputy governor for policy and planning, said the authority had also spoken to 1,400 local people in the same six provinces to try to understand their sentiments about travel during the period.

Despite the political tension, most of the participants said they would still go travelling this month. Chiang Mai was the most popular destination with 12.2 per cent, followed by Chon Buri (8.2 per cent), Rayong (6.4 per cent), Loei (6.1 per cent) and Phuket (5.2 per cent). Chiang Mai was popular because there was no political unrest there.

Of the 399 Bangkokians participating in the survey, 80.5 per cent said they would definitely take part in the protests.


-- The Nation 2013-12-20

[NongKhaiKid]

This must be a misprint, a basically negative report from TAT.

[Tatsujin]

Yes, TAT occasionally make negative reports, they must be going after some new funding. I think the "1 bag of rice, 1 tourist" policy is going to rear it's ugly little head again very soon.

[Tokay]

Chiang Mai has very few tourists right now. Not sure where they are getting their numbers from.

[oldthaihand99]

"Of the 399 Bangkokians participating in the survey, 80.5 per cent said they would definitely take part in the protests."

So over 80% are against YL-TS?

[noitom]

It's a good bet that the freelancer bars in the upscale hotels are still booming with trade.

[jaltsc]

On the other hand, foreign currencies are going up against the Thai baht. Win-win situation. More goods for your money. Fewer tourists getting in the way.

[wprime]

On the other hand, foreign currencies are going up against the Thai baht. Win-win situation. More goods for your money. Fewer tourists getting in the way.

Contrary to the rest of the world, in Thailand when demand goes down, prices go up.

[oldthaihand99]

On the other hand, foreign currencies are going up against the Thai baht. Win-win situation. More goods for your money. Fewer tourists getting in the way.

Contrary to the rest of the world, in Thailand when demand goes down, prices go up.

I'm quite sure the price of a bacardi breezer at 7-11 or Foodland will remain the same.

As also with the gogos, streetwalkers, hotels, etc.

Edited December 20, 2013 by oldthaihand99

[jackr]

This must be a misprint, a basically negative report from TAT.

No problem being negative as long as there's someone to pin the blame on.

[Harrykrabi]

As a survival tactic, 21 per cent of the respondents in Bangkok are giving away restaurant gift vouchers, while 69 per cent of the companies in the capital are calling on the government to guarantee their earnings if their businesses are hit by the political chaos. Most of the respondents also said they wanted the administration to continue promoting tourism. In addition, 79.8 per cent of them said they were confident that business would get better next year.

BUT....successive governments have always stated that tourism only accounts for around 7% of income, a drop in the ocean they always say. I forget who it was who said they were not really too bothered about tourism. Now we start to read the word "survival", makes me wonder if anyone in power in this country actually has the slightest clue whats really happening ?

[Suradit69]

On the other hand, foreign currencies are going up against the Thai baht. Win-win situation. More goods for your money. Fewer tourists getting in the way.

Contrary to the rest of the world, in Thailand when demand goes down, prices go up.

I figured this thread would generate this time-worn bit of wisdom from the West where economies are still struggling to emerge from a recession induced by the same sort of flawless economic and financial thinking.

If a hotel, or any other business for that matter, serves a more affluent clientele (i.e. people not accustomed to using a communal washroom at the end of the corridor or who feel a ceiling fan isn't adequate for cooling) then offering cut rate prices that attract tour bus loads of unwashed backpackers during the normal high season isn't going to save the business and in the long run will cause their usual customers to never return again. If you're paying Baht 8,000 or more a night for a room, you don't want to have to elbow your way through the lobby, restaurant and elevators filled with people in wife-beaters and toting sacks of McDonald's carry outs.

And as far as normal pricing is concerned, every hotel in Thailand that I know of reduces prices when demand is low in the summer months and raises prices when demand is high.

I bet this guy endorses your thinking and is hoping they cut prices at the Shangri-La Hotel though.

Edited December 20, 2013 by Suradit69

[Bpuumike]

As a survival tactic, 21 per cent of the respondents in Bangkok are giving away restaurant gift vouchers, while 69 per cent of the companies in the capital are calling on the government to guarantee their earnings if their businesses are hit by the political chaos. Most of the respondents also said they wanted the administration to continue promoting tourism. In addition, 79.8 per cent of them said they were confident that business would get better next year.

BUT....successive governments have always stated that tourism only accounts for around 7% of income, a drop in the ocean they always say. I forget who it was who said they were not really too bothered about tourism. Now we start to read the word "survival", makes me wonder if anyone in power in this country actually has the slightest clue whats really happening ?

That 7% might have been before Thailand stopped selling rice?

Suspiciously low in any case. Consider the unreported cash transactions that go on nightly.

[siddv]

I upgraded hotels just the other day because the hotel rates now were better than when I booked in September. I had booked a 3 star now moved over to the Sofetil Suk as the rate was lowered. This has never happened overt the X-mas NY holiday. Must be having some effect.

[ginjag]

The poll was carried out in NOVEMBER-- <deleted>--I wonder what it would say now ????................5% drop

[BlueSkyCowboy]

This must be a misprint, a basically negative report from TAT.

No problem being negative as long as there's someone to pin the blame on.

Barry said that it is George Bush's fault

Edited December 20, 2013 by BlueSkyCowboy

[diehard60]

I like this and this is all sutheps fault. not the government. I hope it keeps dropping as suthep said he would destroy bangkok.

[rojack45]

On the other hand, foreign currencies are going up against the Thai baht. Win-win situation. More goods for your money. Fewer tourists getting in the way.

Obviously you do not own or operate a business here. I can tell you from experience and first hand knowledge that the percentages quoted for decline in traffic , and revenue and occupancy in the silom area are conservative to say the least!

[lockman]

On the other hand, foreign currencies are going up against the Thai baht. Win-win situation. More goods for your money. Fewer tourists getting in the way.

HUH? If the baht is LOSING ground against foreign currency, then prices of imported goods cost more Baht. IE, if a barrell of Oil is 100USD @ 29 =2900B, but if that same barrell is 100 and currency is 32.5 that 3250B, So anything IMPORTED become more expensive, and fuel is a major player. Yea good for tourists, but costing the average Thai person who rides a motorcycle, drives a car or truck, or sells imported stuff more Baht. Today I saw 32.5. per USD. Now that decreases the price of exports, but the average Thai person doesn't see much of that.

[kingalfred]

"Operators in Nakon Ratchisima and Chonburi mean said costs were on the rise" uhhh? What is this to do with fewer tourists? Unless of course it refers to Vendors putting up prices because of fewer numbers.

[anotheruser]

On the other hand, foreign currencies are going up against the Thai baht. Win-win situation. More goods for your money. Fewer tourists getting in the way.

HUH? If the baht is LOSING ground against foreign currency, then prices of imported goods cost more Baht. IE, if a barrell of Oil is 100USD @ 29 =2900B, but if that same barrell is 100 and currency is 32.5 that 3250B, So anything IMPORTED become more expensive, and fuel is a major player. Yea good for tourists, but costing the average Thai person who rides a motorcycle, drives a car or truck, or sells imported stuff more Baht. Today I saw 32.5. per USD. Now that decreases the price of exports, but the average Thai person doesn't see much of that.

The guy driving the cars and trucks with an import company is way more likely to be affluent than the guy in a field in Issan hoping to sell rice at a favorable price. I don't see your logic here at all.

Either way Somchai isn't going to be sweating the cost of Marmite, Branston pickle and cider. The people that import will just pass the cost on anyway.

[Ulic]

Seems far more reasonable and accurate than the last article I read by a hotel association that claimed

occupancy was down 30-40%

[outsider]

"The current political unrest appears to be having a negative impact on hotel occupancy rates and advance bookings this month in Bangkok"...

'APPEARS'???

[ratcatcher]

It's a good bet that the freelancer bars in the upscale hotels are still booming with trade.

"It's a good bet that the freelancer bars in the upscale hotels are still boom booming with trade."

[EricBerg]

I like this and this is all sutheps fault. not the government. I hope it keeps dropping as suthep said he would destroy bangkok.

Suthep and his protesters didn't set fire to BKK, unlike the people of the missunderstood fugitve a few years ago, who annouced back then that he would.