Thailand's hotel industry has been adrift since the COVID 19 crisis, which deprived the kingdom of its 40 million international tourists. Hotels are the first to suffer the consequences, as Marisa Sukosol Nunbhakdi, President of the International Hotel Association of Thailand and Executive Vice President of the Sukosol hotel group, explains.
Is it still possible for foreign travellers to visit Thailand?
Marisa Sukosol Nunbhakdi - Entering Thailand is still complicated, even though the Thai government ended the compulsory quarantine of the entire country in June. Since July in fact, our government authorises the arrival of 11 categories of travellers. This includes expatriates with work permits, certain entrepreneurs and people working in the medical field. A category of long-stay travellers will soon be added, who will be able to stay in the country for up to nine months. The problem remains the mandatory 14-day quarantine. Its high cost is certainly putting off many travellers. We are now hoping for other measures. For example, we have suggested that the government create "quarantine-safe" zones. This would allow people to move around within a delimited area that would no longer be confined to a single establishment. Phuket could serve as a test market.
How resilient is the Thai hotel industry?
MR S. N. - I won't hide the fact that we are going through a serious crisis. Hotels are showing an average an occupancy rate of 10%. ASQ" certified [ndlrAlternative State Quarantine] record occupancy rates of 20% to 30%. However, a minimum occupancy rate of 30% would be required to ensure financial viability.
Are some segments more affected than others?
MR S. N. - There are establishments in regions that really need international visitors. Firstly, because there aren't enough domestic tourists. I'm talking about the upper middle classes. They only travel to certain destinations, those that offer five-star establishments. And because they charge very competitive prices, they exacerbate the difficulties of mid-range hotels.
So do you fear a haemorrhaging of the hotel sector?
MR S. N. - Unfortunately, this is likely. Barely 35% from hotels in Chiang Mai are now open. A PhuketThis rate is around 20%. However, most hotels are operational in Bangkok.. But I'm afraid that if the borders don't reopen in the next few months, many hotels will close for good. An estimated one million people have already been made redundant. Unfortunately, others could join them.
Could the sector's difficulties encourage international chains to set up shop in the kingdom?
MR S. N. - A lot of investment funds are currently interested in or buying hotels because acquisitions are currently cheap. Chis should encourage franchise agreements with international brands. But I'm not sure that these are long-term transactions. I think that our industry will remain essentially made up of local SMEs...
What advantages can hotels in Thailand offer business travellers returning to Asia?
MR S. N. - I am thinking above all ofhe excellent hygiene conditions in our hotels. The Ministry of Tourism and the Tourism Board of Thailand have launched a very strict health certification system. Many establishments have obtained the health standard. This guarantees visitors a very high level of safety. These standards also apply to the organisation of MICE events. We could therefore easily envisage hybrid events. We hope that the new rules will provide travellers with greater flexibility.
