Hotels and shops in Bangkok plead for end to martial law

[webfact]

Hotels and shops plead for end to martial law
SUCHAT SRITAMA
THE NATION


Shoppers stroll on the skywalk in the Ratchaprasong shopping zone. Hotels and shopping malls in Bangkok are pleading with the junta to lift martial law.

Bangkok, hit hard by political chaos, needs to prepare for high season

BANGKOK: -- Hotels and shopping malls in Bangkok are pushing for the lifting of martial law before the high season arrives in the hope that tourists and business travellers will come back to the capital.

Prakit Chinamourphong, an ex-president and adviser to the Thai Hotels Association, said that if the junta ended martial law, the hotel and travel business would quickly return to normal and should jump dramatically during the peak tourism season from October to April.

Bangkok hotels are running only 40-50 per cent full this month, or 10-20 percentage points lower than a year ago. Pattaya hotels are also facing a big drop in guests and are as empty as those in Bangkok. This is much worse than last August.

Occupancy at hotels in Phuket, Krabi and Koh Samui is 80 per cent and in Chiang Mai 70 per cent. Properties in all major visitor destinations except Pattaya are busier this month.

"The travel business in Bangkok was hit in May22 when the military took power as many visitors shifted to the provinces. Many meetings and conferences were relocated to other countries," Prakit said.

Many hotels in the capital have been struggling over past two months in the wake of the political changeover from democratic to military rule. Especially business travellers now still fear for their security and safety.

Although the Foreign Ministry Affairs is working to restore confidence outside, business organisations are still unsure about planning an event or meeting in the country. However, several large events are proceeding as scheduled.

The Thailand Convention and Exhibition Bureau last week said the number of business travellers this year might be no greater than last year, though revenue might rise.

Chai Srivikorn, president of the Ratchaprasong Square Trade Association, also called on the junta to normalise the peace and order situation as soon as possible to draw visitors and business back to Thailand.

Hotels and shopping malls in central Bangkok's Ratchaprasong area are limping because of the disappearance of leisure travellers and businesspeople.

"The political chaos has chased business away from Bangkok, while tourists flocked to the provinces. We have already suffered for more than two months," he said.

About 4,000 hotel rooms and much meeting space in Ratchaprasong are hurting from a lack of guests. Business travellers account for 15-20 per cent of hotel revenue, while tourists contribute 40 per cent of revenue to shops.

The association called on the government to assure tourists that they would be safe and secure if martial law remained. It also has its own plans to launch major monthly activities to lure tourists and businesspeople back, including a Christmas celebration and a New Year's countdown party.

It will also construct a skywalk linking Ratchaprasong with shopping complexes in Pratunam.

Source: http://www.nationmultimedia.com/business/Hotels-and-shops-plead-for-end-to-martial-law-30240709.html

[thenation]2014-08-12[/thenation]

[Somtamnication]

I am sure TAT will have some positive numbers for everyone to drool over, however. 

[NongKhaiKid]

This will come as no surprise to many members but a good friend from Britain booking for a high season holiday later this year has been quoted some amazing rates for monthly occupancy.

 

On the phone to one apartment block he asked the receptionist why the rates had gone up so much compared to his last visit and no surprise that she answered with occupancy so low the owner had increased the rates to make up the lost income. She also said that she gets a few enquiries but no bookings, can't imagine why.

[rametindallas]

I'm sure all the affected hotels have raised their rates to offset the decline in guests. 'Thainess'

[Tatsujin]

NongKhaiKid - and there's that stupid "Thainess" raising it's ugly head again . . . when times are hard, you streamline to save costs and make offers on rooms, not double or even triple prices. Morons.

[JDGRUEN]

I simply do not believe the occupancy rates quoted in this article for the sea side resorts..  Ao Nang was not listed and it is a little more laid back in general - not as much a party town as others.  But if Ao Nang is any indicator for real low season occupancy rates then the island and seaside resorts are in trouble for the current low season and the coming high season. 

 

I have spent the last two and one half months in Ao Nang and unless the hotel or resort is within 1/2 kilometer of the beach the average occupancy rate is around 25 to 30 percent - from many repeated observations.  At 2 to 3 kilometers off the beach - there are a considerable number of rental houses, apartments, bungalows, resorts, hotels, etc., and some are completely shut down.  Others have very low occupancy down to 15 percent or so.  

 

I make my estimates from having been on nearly every street or road in Ao Nang more than once in the time I have been here.  I have gone on foot (exercise walks) and on motorbike ever other day.  I have made dozens of inquiries seeking a good bargain on a long stay place.  It is frequently difficult to find anyone in charge of the nearly empty property - 'owner she gone'. 

 

Down on the tourist strip the street hawkers are worn out - you can see a bit of desperation on their face,  They practically grab the tourist by the arm trying to get them into the nearly deserted restaurants.   In my time here - exercise walking about every other day 3 and 1/2 kilometers down to the beach and back up the other side, I have yet to see one customer in a tailor shop and I pass by quite a few each walk. 

 

I have entered many properties where maintenance has nearly ceased inside and out.   I went into a nice one only yesterday ... musty inside and not touched since the last occupant had vacated - clothing, shoes, socks, just lying about,  Nothing had been cleaned for a 'make ready' for showing to a new tenant - me.  And as I say - it is a nice place visually - not cheap.  It had a great rock cliff view.   Further up the street is a collection of typical bungalows - fairly nice - about 9 or 10 units... no maintenance - nothing cleaned from previously occupied units ,... about 1/2 of the units empty.   After three attempts I finally got a Thai friend to help me get in touch with the landlady (who posed as the owner - typical).   She won't be back until this coming Saturday.  The property is offered at a bargain priced including electric (unheard of down here) if one commits for a minimum of three months.  I could repeat this type story many times.

 

If they are waiting for the high season before bringing the properties 'up to snuff' many property owners are going to have to make a mad dash in property maintenance and some will have to do restoration.   Speaking of which I now recall a group of about 10 large bungalows with a prime hillside view 3/4 kilometer off the beach - totally gone to mold, broken shingles, debris and worse - totally empty.   All of this in the light of the fact that multiple huge hotels are being built down the main tourist road from Tesco.  I have also made several tours of the really nice older large hotel resorts in the Nopparat Thara beach area ...  hardly anyone there.    If enough people show up to fill up the empty units and the many new ones - the traffic will be in grid lock during peak traffic times.

 

Ao Nang still looks good on the surface - especially very near the beach.  Quite busy along the beach front road.  Maybe what I see is typical for low season and it just magically recovers for high season.. I will be staying long enough to see ... so I'll write an update.  

[Bender]

i bet the next high season will be the lowest they did have in the last 10 years...

[Thailand]

Those occupancy figures are way over inflated and this year is going to be a huge bust and many people in the tourism industry will lose their jobs, but they will have the happyness so all will be well.

Removing martial law will make no difference, that is not the problem.

It may start to improve at the end of next year if what has been said transpires but I am not holding my breath.

[JDGRUEN]

Down here in Ao Nang many hotel / 'resort' owners are from Europe, U.K. and elsewhere.  They tend to leave no one in charge who is authorized to negotiate.  Recently I went into a very nice place, eight units - one bedroom, kitchenette, bathroom, furnished. It was nice - but nothing special.   I asked the price of the nice woman who as acting as manager - with no authority as it became obvious.  She said 30,000 a month.  I blinked several times and pointed out to her (at least I tried to get it across) that there were many places in Ao Nang of same size, quality, furnished the same, with a pool for 11k, 12k, 14k.  I asked about talking to the owner... 'He is in Italy'... No one to talk with or negotiate with... This 30k may be a high or peak season price but it is totally out of the realm of reality for low season.  I passed by on my motorbike a few days later - looking at other properties on the street.  She came out and asked me if I was going to stay in her resort hotel.  Taking a deep breath - trying to think of enough Thai words ... I then tried to get it across to her that starting at 30k makes in nearly impossible to negotiate down to a reasonable 12k.  Especially since I cannot talk to the owner - the only person permitted to negotiate. 

 

From this example and dozens of others (not quite so striking) I have concluded that owners of hotels and resorts in Thailand seaside or island areas have relied on very lucrative profits in high and peak season and don't really care whether properties are rented or not in low season.  As on an annual basis they have been turning a handsome profit.  But they still offer the properties for rent in low season in many cases ?? ...  This also doesn't account for the many examples of poor to no maintenance I have seen.  But something tells me that some owners have not kept their eye on the ball - not paid attention to the years of protest and violence, Army take over and martial law, over building and now crackdowns on some types of visitors - all of which colors options for tourism choices for many around the world.   So - We'll See...

 

 

Edited August 12, 2014 by JDGRUEN

[Thailand]

I'm sure all the affected hotels have raised their rates to offset the decline in guests. 'Thainess'

Last year we had some friends stay in a hotel in the middle of Chiang Mai at a cost of THB1250 in mid September.

Out of curiosity I just checked the prices for the same period this year.

THB2400!

[MaxLee]

 

 

BANGKOK: -- Hotels and shopping malls in Bangkok are pushing for the lifting of martial law before the high season arrives in the hope that tourists and business travellers will come back to the capital.

 

But, but, but, that also means that the protesters will be back and scare away even more tourists....  

[ebean001]

Martial has to go away quickly. The NFL football season is upon us. I have not bought the NFL ticket for the bar because of the martial law. Wht do we still have it? It should be removed 100% across the whole nation - not a few provinces at a time.

[rametindallas]

 

I'm sure all the affected hotels have raised their rates to offset the decline in guests. 'Thainess'

Last year we had some friends stay in a hotel in the middle of Chiang Mai at a cost of THB1250 in mid September.

Out of curiosity I just checked the prices for the same period this year.

THB2400!

 

From the OP: Properties in all major visitor destinations except Pattaya are busier this month.

Possibly because Chiang Mai still is a great tourist destination with no negative publicity.

[Thailand]

 

 

I'm sure all the affected hotels have raised their rates to offset the decline in guests. 'Thainess'

Last year we had some friends stay in a hotel in the middle of Chiang Mai at a cost of THB1250 in mid September.

Out of curiosity I just checked the prices for the same period this year.

THB2400!

 

From the OP: Properties in all major visitor destinations except Pattaya are busier this month.

Possibly because Chiang Mai still is a great tourist destination with no negative publicity.

 

70% occupation in Chiang Mai is complete bollocks and believe it or not Chiang Mai is also under the same military control as the rest of Thailand and was one of the last places to have the curfew lifted.

 

Every hotel here has rooms to spare. Tour guides I know have no clients.Restaurants that normally have even low season tourists are struggling.

[poohy]

I have had many dealings with hotels and service providers in Ao Nang, and its 100 percent true it has always relied on it high season and its astronomical peak season prices (Scandinavian clients) Its not unusual for high season prices to be 5x more than off season.

Just imagine trying to cost group tours on a yearly basis when regardless of giving them customers in low season they do this this,it becomes unworkable! 

 

Sadly as stated many resorts are left to in experienced staff during this  low season time, maintenance well ......

[shunima]

I have had many dealings with hotels and service providers in Ao Nang, and its 100 percent true it has always relied on it high season and its astronomical peak season prices (Scandinavian clients) Its not unusual for high season prices to be 5x more than off season.

Just imagine trying to cost group tours on a yearly basis when regardless of giving them customers in low season they do this this,it becomes unworkable! 

 

Sadly as stated many resorts are left to in experienced staff during this  low season time, maintenance well ......

 

Maybe it's time to change your business partners then. I have experienced always a difference of ~25% between low (June-Oct) and high (Dec-Feb) season at good 4 star properties in Ao Nang.
 

[shunima]

 

I'm sure all the affected hotels have raised their rates to offset the decline in guests. 'Thainess'

Last year we had some friends stay in a hotel in the middle of Chiang Mai at a cost of THB1250 in mid September.

Out of curiosity I just checked the prices for the same period this year.

THB2400!

 

 

My hotel in BKK (Thai owned and managed) charges 2450 THB instead of 1950 THB but last time booking was in March and now the bookings are in Dec/Jan and very close to X-mas and new year so I feel that the 500 THB top up is rather seasonal and still reasonable.
 

[oldsailor35]

 

 

 

BANGKOK: -- Hotels and shopping malls in Bangkok are pushing for the lifting of martial law before the high season arrives in the hope that tourists and business travellers will come back to the capital.

 

But, but, but, that also means that the protesters will be back and scare away even more tourists....  

 

Not as long as the boss stays in the temple   

[spidermike007]

This will come as no surprise to many members but a good friend from Britain booking for a high season holiday later this year has been quoted some amazing rates for monthly occupancy.

 

On the phone to one apartment block he asked the receptionist why the rates had gone up so much compared to his last visit and no surprise that she answered with occupancy so low the owner had increased the rates to make up the lost income. She also said that she gets a few enquiries but no bookings, can't imagine why.

 

 

 

Well, there is little excuse for pure simplemindedness. Let the fool wallow in low occupancy. The clever ones are offering better rates, and incentives. I see restaurants offering specials, and I see bars lowering the price of a cocktail, to something resembling a reasonable rate, considering that one shot of super low quality generic liquor costs about 20 baht. No reason to be charging 150 baht. Now, will this finally have an effect on the go go bars, that can get away with charging 150 baht for soda water? 

[gk10002000]

I simply do not believe the occupancy rates quoted in this article for the sea side resorts..  Ao Nang was not listed and it is a little more laid back in general - not as much a party town as others.  But if Ao Nang is any indicator for real low season occupancy rates then the island and seaside resorts are in trouble for the current low season and the coming high season. 

 

I have spent the last two and one half months in Ao Nang and unless the hotel or resort is within 1/2 kilometer of the beach the average occupancy rate is around 25 to 30 percent - from many repeated observations.  At 2 to 3 kilometers off the beach - there are a considerable number of rental houses, apartments, bungalows, resorts, hotels, etc., and some are completely shut down.  Others have very low occupancy down to 15 percent or so.  

 

I make my estimates from having been on nearly every street or road in Ao Nang more than once in the time I have been here.  I have gone on foot (exercise walks) and on motorbike ever other day.  I have made dozens of inquiries seeking a good bargain on a long stay place.  It is frequently difficult to find anyone in charge of the nearly empty property - 'owner she gone'. 

 

Down on the tourist strip the street hawkers are worn out - you can see a bit of desperation on their face,  They practically grab the tourist by the arm trying to get them into the nearly deserted restaurants.   In my time here - exercise walking about every other day 3 and 1/2 kilometers down to the beach and back up the other side, I have yet to see one customer in a tailor shop and I pass by quite a few each walk. 

 

I have entered many properties where maintenance has nearly ceased inside and out.   I went into a nice one only yesterday ... musty inside and not touched since the last occupant had vacated - clothing, shoes, socks, just lying about,  Nothing had been cleaned for a 'make ready' for showing to a new tenant - me.  And as I say - it is a nice place visually - not cheap.  It had a great rock cliff view.   Further up the street is a collection of typical bungalows - fairly nice - about 9 or 10 units... no maintenance - nothing cleaned from previously occupied units ,... about 1/2 of the units empty.   After three attempts I finally got a Thai friend to help me get in touch with the landlady (who posed as the owner - typical).   She won't be back until this coming Saturday.  The property is offered at a bargain priced including electric (unheard of down here) if one commits for a minimum of three months.  I could repeat this type story many times.

 

If they are waiting for the high season before bringing the properties 'up to snuff' many property owners are going to have to make a mad dash in property maintenance and some will have to do restoration.   Speaking of which I now recall a group of about 10 large bungalows with a prime hillside view 3/4 kilometer off the beach - totally gone to mold, broken shingles, debris and worse - totally empty.   All of this in the light of the fact that multiple huge hotels are being built down the main tourist road from Tesco.  I have also made several tours of the really nice older large hotel resorts in the Nopparat Thara beach area ...  hardly anyone there.    If enough people show up to fill up the empty units and the many new ones - the traffic will be in grid lock during peak traffic times.

 

Ao Nang still looks good on the surface - especially very near the beach.  Quite busy along the beach front road.  Maybe what I see is typical for low season and it just magically recovers for high season.. I will be staying long enough to see ... so I'll write an update.  

 

Interesting post.  I spent two weeks in Ao Nong last november and I loved it.  I liked the beach on Phuket better (Karon) but Ao Nong had a nice quaintness to it.  I loved the view out my hotel window, Limestone cliff to the left, water straight ahead, jungle on the right.  There were some very nice little eateries walking down the hill.  Best mango shakes
 

[JDGRUEN]

 

I have had many dealings with hotels and service providers in Ao Nang, and its 100 percent true it has always relied on it high season and its astronomical peak season prices (Scandinavian clients) Its not unusual for high season prices to be 5x more than off season.

Just imagine trying to cost group tours on a yearly basis when regardless of giving them customers in low season they do this this,it becomes unworkable! 

 

Sadly as stated many resorts are left to in experienced staff during this  low season time, maintenance well ......

 

Maybe it's time to change your business partners then. I have experienced always a difference of ~25% between low (June-Oct) and high (Dec-Feb) season at good 4 star properties in Ao Nang.
 

 

 

At a location about 1/2 kilometer sorta north of Tesco, the fairly luxurious place where I have been staying for going on three months is very well managed by a Danish owner and his wife.  I can only stay here for a while because of low season prices which are less than half high season and far less than half of peak season.

 

Example: I am in a one bedroom unit next to a very nice roomy two bedroom/ two bath, large kitchen, dining and living room with a large front veranda and a back utility porch.  It is very nicely furnished,  This unit is directly by the well kept pool.  Plus maid service 3 times a week, new bed linens, more than enough towels, etc.  Low season price 22,000 month at a time.  High Season price - supposed to be 40k, peak season price supposed to be up to 60k month to month.  Plus in low season I get a one month motorbike rental for 2000 Baht (about 67 baht a day) - normal rental around here for low season 135 to 150 a day for a 125cc or so.  

The owner evidently sees the sense of getting low season rentals which assist in cash flow to do the excellent landscaping with constant maintenance - and probably pays his staff of between 8 to 10 people.  They also offer personalized van service to the airport at just a little over 1/2 price of a regular taxi.  The owner and his Thai wife co-owner seem to be quite savvy about the requirement to keep a nice property in constant maintenance and repair.  When high season hits - they will be fully ready ... no mad dash to repair and restore and clean up... 

 

And - the Thai manager can and will get authority make a deal when the bosses are away 

 

Many other places in Ao Nang should follow his example. 

 

 

[Thanet]

Those occupancy figures are way over inflated and this year is going to be a huge bust and many people in the tourism industry will lose their jobs, but they will have the happyness so all will be well.

Removing martial law will make no difference, that is not the problem.

It may start to improve at the end of next year if what has been said transpires but I am not holding my breath.

 

You make a very good point. Everyone is happy now, so crude realities of economics shouldn't make any difference. They'll still be just as happy when they lose their jobs,  

 

I'd say that martial law is a deterrent to tourists, in that many of whom may find it hard to get travel insurance.

[Emster23]

the junta need to get some pr going overseas: "Thailand: never better!" . People have the wrong mental image when hear word 'junta". I've been living here for 13 years, and am amazed how quickly things have improved. And I was not happy when took over, believed in idea of elected government....

[poohy]

"Maybe it's time to change your business partners then. I have experienced always a difference of ~25% between low (June-Oct) and high (Dec-Feb) season at good 4 star properties in Ao Nang"

 

Yes we had to chop and change but still big differences in prices plus the included costly add ins e.g. Christmas and New meals  

Luckily we got bought out by one of the big companies so its of little consequence now

[hawker9000]

It's really not the "martial law", at least not per se.   It's the spasmodic immigration & police "crackdowns" that are generating confusion & uncertainty and putting prospective visitors off.  All of which began before the military takeover.  The army may have given these crackdowns their "stamp of approval" seeing a valid purpose in getting rid of illegal foreign workers, intentional overstayers, and foreigners engaged in criminal activity, and may have so far failed to effectively control the freakish inconsistencies and persistent quirks in matters relating to visas, entry stamps, overstaying, passport-carrying, etc., etc., etc. which have been the result. But if they'd just paid attention to that early on and made sure some adult was in the room at all times, the damage might've been avoided, and who's running the government these days would be pretty much transparent to most foreigners, or even preferred to the demonstrations, marches, blocked intersections, areas to be avoided, embassy warnings & continuing "calls for action" that were the order of the day before.   

[longtom]

Samui overall occupancy 80% ?

[useronthenet]

The needs of the many, must outweigh the needs of the few. 

Martial law however damaging, is a necessary evil, which when appropriate, will be lifted.

Teflon Thailand will bounce back, have patience !

[simon43]

My little hotels in Phuket are running around 95% occupancy right now (best buy on Booking dot com, Expedia etc), , whilst my Thai competitors are running at maybe 30%.  The simple reason is that in this very low season, I reduced my room rates and they increased theirs!  I'm getting punters through the doors who are buying food and drink and tours.... and they are getting nothing :)

 

Sometimes I don't understand Thai economics.....

[MikeN]

 

 

 

 

BANGKOK: -- Hotels and shopping malls in Bangkok are pushing for the lifting of martial law before the high season arrives in the hope that tourists and business travellers will come back to the capital.

 

But, but, but, that also means that the protesters will be back and scare away even more tourists....  

 

Not as long as the boss stays in the temple   

 

But it's the other side's turn to take over the streets ! Their boss has Skype, deputy boss has facebook

[Tokay]

You get the government you deserve.