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As Covid-19 spreads, more hotels in Phuket close

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Phuket tourism and hospitality business are hit again by the current Covid-19 outbreak with more hotels closing down. Many hotels are starting to close again due to a significant number of bookings cancellations. Most of them can’t handle the costs to stay open and some are expected to permanently shut down.

Bill Barnett from c9Hotelworks.com says that the latest outbreak is hitting the island’s struggling hotel industry particularly hard.

“Phuket’s hotel industry is now being hit by a second wave that in many ways is more damaging than the past 6 months. With cash flow muted, and the flow of travellers from Bangkok now slowed to a trickle, our hardest yards out ahead in Q1 2020. While the vaccine will trigger green shoots in the industry, the task as hand is now to survive the next 2 months.”

Kongsak Khoopongsakorn, President of the Thailand Hotels Association Southern chapter, also said the situation for hotel operators in Phuket is bad.

“From questioning about 10 hotel operators, three of them have confirmed that they are closing again because they cannot handle the cost and loss. This year, some hotel operators may announce to sell their hotels at prices that are 50-60% less than the value of the hotel.”

Although hotel operators saw a hope to keep their businesses alive with the government’s domestic tourism boosting campaign, “We Travel Together”, the number of tourists coming to Phuket are lower than expected. According to the AoT Phuket, the number of domestic passengers passing through Phuket airport this year was down 69.37% compared to last year.

SOURCE: Phuket News

 

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12 Comments

12 Comments

  1. Avatar

    Toby Andrews

    Friday, January 8, 2021 at 5:57 pm

    They will see sense eventually.
    It will not be we travel together. It will be take the small risk and travel.
    Thailand has to start taking the risk, or they will starve. Other countries do . . .

    • Avatar

      Nipral

      Saturday, January 9, 2021 at 8:39 am

      You are right ! But other countries have a government….

  2. Avatar

    Frank Leboeuf

    Friday, January 8, 2021 at 6:19 pm

    You can’t boost domestic tourism while restraining mobility to try to control an outbreak…
    No country did that.
    Look at Japan today, after the “GoTo Travel” incentive, or Indonesia, after they opened the floodgates of domestic tourist from the Javanese hotspot…
    Get the outbreak under control, then restart domestic tourism incentives…

  3. Avatar

    Rasputin

    Friday, January 8, 2021 at 6:31 pm

    I thought you would have noticed by now, the vast majority of Thais are frightened of the virus, and consequently are extremely risk averse. Most of the Thai economy is still functioning and the agricultural sector has a large overcapacity, there will be no Ethiopian style famine in Thailand in the foreseeable future. When the new vaccine has been widely distributed, some of the restrictions may be eased a little for ‘safe countries’ but unlikely to be removed to enable mass tourism this year or next. Grim situation IMO.

    • Avatar

      J West

      Friday, January 8, 2021 at 9:32 pm

      I’m noticing young Thai in particular , driving long distances and bragging about it. “ Just got back”…..” Leaving next weekend for”…. oblivious. ..I see people entering and exiting my building frequently with suitcases. …I’m hearing this a lot from young office worker types. Meanwhile we see our pool and gym close and there’s three temp check readers just to get into the building. They don’t seem to be afraid of anything…..and all this blatant irresponsibility is scaring the custard out of me.

  4. Avatar

    Ted

    Friday, January 8, 2021 at 6:43 pm

    Totally agree with you Toby.

    It’s well understood the situation the world is in, al though not everyone see c19 as devastating as others do –absolutely most governments do, though– so open the boarder to those who are willing to come BUT forget about any quarantine, what so ever! After been on a flight for +10 hours, looking at myself, I would never do it, even if the quarantine was down to hours. Don’t forget, there are many destinations to choose from all around the world.
    It’s time for Thailand to take the opportunity and get of the high horse, understand who you are Thailand! Although, that the current government is able to do that and say no to the power this situation has given to them….very doubtful!

  5. Avatar

    Barker

    Friday, January 8, 2021 at 8:43 pm

    65 Covid deaths since March but nearly 400 road deaths over the 4 day holiday period.
    With new treatable drugs and vaccines surely there can soon be some leeway.

    • Avatar

      Nipral

      Saturday, January 9, 2021 at 8:41 am

      a military government does not hold the country with road deaths !

  6. Avatar

    Ak

    Saturday, January 9, 2021 at 9:13 am

    50% of population to be vaccinated until the end of the year + 3 months observation period is the plan I read for Thailand.
    This means closed borders until 3rd of 22’.
    If we don’t see an IATA digital health pass soon,that might get some push from the airlines to boost traveling and some more vaccines here I don’t expect anything to change until 22’.
    Hope I am very wrong.

    • Avatar

      Andre

      Sunday, January 10, 2021 at 5:10 am

      A digital health pass and vaccine requirements for travel is a very bad idea, anyways – most people that would travel are in the back of the line for vaccination in most countries. Old people and healthcare workers first – which means that it would take about a year before a big enough number of fit people below 50-60 will get their jab. Yes, I know there are many old men that are handsome for their rented girl in here so if you go you’re 50+ don’t get offended – it’s not personal. Just a fact.

  7. Avatar

    Toby Andrews

    Saturday, January 9, 2021 at 2:52 pm

    They think it is covid that is deciding people not to go. It might be for the Thais, but they are still up to their old nasty racist tricks.
    A Canadian reported on 2Price Thailand recently, a Mr Ward, was charged at a snack place, B120 when the Thai price was B50.
    Once liars and cheats, always liars and cheats . . .

    • Avatar

      Kim

      Saturday, January 9, 2021 at 5:03 pm

      Toby. This nasty overcharging and cheating is not exclusive to Thais, foreign owned outlets are equally at fault.

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