Thai hoteliers are raising alarms about foreign businesses allegedly using Thai nominees, a practice they fear could harm Thailand’s tourism reputation. The issue, highlighted by the Thai Hotels Association (THA), is gaining attention as the high season brings an influx of travelers.
Foreign Investments: A Threat to Thailand’s Tourism Image
Rising Concerns Among Thai Hoteliers
Key Findings from THA Sentiment Index
According to Thienprasit Chaiyapatranun, President of the Thai Hotels Association, nearly half of the country’s hotel operators are uneasy about foreign investments, particularly from Chinese entrepreneurs. The October Hotel Operator Business Sentiment Index revealed that:
- 53% of four-star and above hotels don’t consider these foreign businesses direct competitors but worry about price wars and reputation damage.
- Three-star hotels and below see these businesses as a direct threat due to overlapping target markets.
Regional Challenges for Smaller Hotels
Price Competition and Image Concerns
The impact is more acute in central and northern Thailand, where smaller hotels face challenges such as:
- Price undercutting by illegal businesses.
- Damage to the region’s tourism brand.
High Season Brings Opportunities and Challenges
Occupancy Rates Improve in October
As the high season began in October, the national average hotel occupancy rate climbed to 57.6%, compared to 54% in the same period last year. Expectations for November point to an increase to 68%.
Performance by Hotel Tier
- Four-star and above: Achieved a 60.2% occupancy rate, benefiting from more stable markets.
- Three-star and below: Recorded a 52.7% occupancy rate, struggling with price competition.
Labour Shortages and Service Quality
Despite higher guest numbers, luxury hotels face severe labour shortages, affecting service quality. Essential roles like cleaners, waiters, and waitresses remain unfilled, highlighting a need for government intervention.
Hoteliers’ Recommendations for Government Action
Key Areas for Immediate Attention
Cracking Down on Illegal Businesses
Hoteliers urge the government to intensify efforts to address the misuse of Thai nominees by foreign businesses to prevent long-term damage to the tourism industry.
Economic Stabilization
- Thai Baht Stability: Reducing currency fluctuations to boost business confidence.
- Soft Loan Approvals: Accelerating financial aid for hotels affected by flooding to aid recovery efforts during the high season.
Industry Training and Workforce Development
To combat labour shortages, hotel operators recommend government-supported training programmes to attract more workers to the hospitality sector, ensuring a better guest experience.
Protecting Thailand’s Tourism Future
The concerns raised by Thai hoteliers underscore the delicate balance needed to safeguard Thailand’s tourism image while fostering sustainable growth. As the high season progresses, collaboration between the government and industry stakeholders will be essential to maintain the country’s status as a premier travel destination.
Ref – Thaiger
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