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Chiang Mai hotels face a quiet end to 2019

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Chiang Mai hotels are bracing for a quiet end to 2019, along with other Thai tourist hotspots, due to the strength of the baht, an over-supply of rooms and the growing popularity of home-sharing accommodations like Airbnb.

Hoteliers in the northern city are also suffering the fall-out from the smoke haze crisis earlier in the year which put off a lot of forward tourist bookings.

Occupancy rates have fallen in Q3 20%, compared to an 80% rate at the same time last year. Hoteliers say that, usually, this is a relatively busy time for the northern city with school holidays in Europe and China. This year’s Chinese ‘Golden Week’ (October 1-7) was also very quiet compared to previous years.

They predict the average occupancy rate of less than 60% may be the ‘norm’ for the rest of the year. At the same time the number of rooms in Chiang Mai has risen an additional 10,000 rooms to 60,000 rooms in just two years, so there is a glut of rooms competing for dwindling business.

The rise of home-sharing accommodation in northern Thailand is further exacerbating the problem for the traditional hotel market. Hoteliers are also blaming this year’s negative publicity about the smoke and haze during March and April.

According to the Bangkok Post, in the first eight months of this year Chiang Mai welcomed 6.38 million tourists, down 2.2% compared to the same period last year.

SOURCE: Bangkok Post

 

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