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Re-opening Thailand to tourism will be vaccine dependent

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Bill Barnett from c9hotelworks.com continues to follow the difficult journey of the Thai hospitality industry. Traditionally, now would be the start of the country’s highly profitable high season for the tourism industry. But not this year. Thai hotels find themselves in the middle of an existential crisis – either still closed, only partly open, or one of the few converted to limited ASQ traffic. The situation is dire, when you consider that between 15-20% of Thailand’s GDP is linked to tourism.

In a speech this week Thailand’s Prime Minster Prayut Chan-o-cha spoke clearly that only when a vaccine is approved, produced, and implemented, would the country open to substantial tourism. Given the current timelines and forecasts, this may not be likely until mid-2021 at the earliest, though subject to advancement if the process could be accelerated, which is unlikely.

For tourism and hotel stakeholders, the writing is on the wall that 2021, for the most part, will see a continued reliance on domestic travellers, and only in 2022 will there be a large-scale return in numbers of overseas visitors.

Given the winter spike in Asia, Europe, and North America of Covid-19, Thailand is not alone in relying on the vaccine to return tourism but the process will not be instant and the re-openings of borders will most certainly be staged.

HERE’s a list of 113 Alternative State Quarantine hotels.

The business reality for Phuket and across Thailand is to plan for the worst in the coming six months and only expect 2022 to see a notable uptick.

Currently, the hotel sector continues to advocate to the Thai government and Central Bank for debt and financing relief measures and assistance in a social security supplement to retain staff.

While it’s negative news, it at least allows for hotels to understand the challenges ahead, plan and adjust their operating models going forward. ‘Survive the downturn’ is the new mantra.

No vaccine, no entry. Read more HERE.

No vaccine, no flight. Read more HERE.

 

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Bill Barnett has over 30 years of experience in the Asian hospitality and property markets. He is considered to be a leading authority on real estate trends across Asia, and has sat at almost every seat around the hospitality and real estate table. Bill promotes industry insight through regular conference speaking engagements and is continually gathering market intelligence. Over the past few years he has released four books on Asian property topics.

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