7-9-2023 (BANGKOK) Hotels in Thailand have reported a surge in bookings from government agencies looking to utilize their fiscal 2023 budgets before the September 30th deadline. While this has provided a welcome boost for the industry, reservations for China’s national holiday in October remain sluggish.
Marisa Sukosol Nunbhakdi, president of the Thai Hotels Association (THA), disclosed that September has seen a rise in hotel bookings, primarily due to a 10-20% increase in meetings from both government and private sectors. Bookings for meetings had stalled in the preceding months as the country awaited the formation of a new government.
Nunbhakdi revealed that demand from state agencies and corporate clients had waned over the past few months due to political uncertainty. The business sector had been reluctant to spend, while state officials sought political clarity before allocating budget spending.
Many government agencies have inquired about spending their fiscal 2023 budgets before the September 30th deadline, resulting in increased bookings, Nunbhakdi added.
However, bookings from Chinese travellers for their long holiday in the first week of October remain scarce. THA speculates that some are awaiting a potential visa-free visit offer from the new Thai prime minister.
A visa-free policy could greatly benefit hotels that typically target Chinese guests, many of which are small and have been closed since the pandemic began.
Nunbhakdi noted that five-star hotels have experienced healthy occupancy rates among individual guests with strong purchasing power since Thailand’s reopening. However, she expressed concern over the country’s reputation in China based on viral posts on Chinese social media regarding travel conditions in Thailand.
THA, along with several tourism operators, recently met with the new Tourism Authority of Thailand governor, Thapanee Kiatphaibool. THA called on the government to restart domestic tourism subsidy schemes, particularly those targeting second-tier cities. The Pheu Thai Party’s 10,000-baht giveaway is not expected to significantly benefit the tourism sector.
Nunbhakdi suggested that the government address the country’s ageing demographics, with individuals aged 60 and older comprising 20% of the population, by promoting employment in the hotel sector. This could involve supporting training programs to recruit recent graduates struggling to find employment and retired seniors looking to work, thereby mitigating the labor shortage in the industry.
