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The Coronavirus effect – Phuket and hotel report

Bill Barnett

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The Coronavirus effect – Phuket and hotel report | The Thaiger
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by Bill Barnett, c9hotelworks.com

“Perhaps the biggest wild card is the mounting number of travel advisories across the globe based on Covid-19”

In what is a continuing storyline on the global coronavirus outbreak, Bill Barnett reports on the impact on Thailand’s most popular island destination, Phuket. He says that the impact on the Phuket tourism market is creating a challenging landscape.

“Looking at the largest single drop according to STR data, was the week of January 20 – 27 in the lead up to Chinese New Year, market-wide occupancy fell from 90% down to 60%.”

As of February 17, occupancy was sitting at the mid-50% level, though rate room rates have remained static during the past month. This week hotel numbers continue to shift downward as sentiment worsens due to travel advisories and a uncertainty over return travel are key issues.

The Coronavirus effect - Phuket and hotel report | News by The Thaiger

Moving over to the aviation gateway of Phuket International Airport as of the February 25, month-to-date arrivals compared to the same period last year were down 37.5%. Looking at Bangkok’s Suvarnabhumi Airport, the comparative figure is a negative 45.2%. which ramps into the Phuket situation given it’s a feeder of business to the island.

Forward trading remains speculative, but there remains widespread postponement and/or cancellations of MICE events.

(The Thaiger was speaking to the owner of a big MICE company in Phuket last week who said that they started the year with a good portfolio of upcoming MICE events on the island but ALL had been cancelled)

While there is some movement to motivate the Thai domestic market by the TAT, all of Thailand’s markets are chasing that same tail. The upcoming Songkran period is likely to be dominated by staycations versus international trips abroad. Expectations are that that declining demand and airlift are key factors impacting occupancy and we are starting to see rate-driven promotions which will undoubtedly hit ADR’s (Average Daily Rate).

Perhaps the biggest wild card is the mounting number of travel advisories across the globe based on coronavirus (Covid-19), and for now, travel and tourism are working on day-to-day management of the situation. As the majority of hoteliers are looking for some historical context and the closest thing to grab onto is the SARS crisis in 2003. For Thailand the market hit a freefall over five months from March to July, as market-wide occupancy bottomed out just under the 30% level in May of that year.

Or course, what followed was the big bounce and pent up demand drove recovery in August. It continued with spectacular growth in the decades since.

In the case of the coronavirus, the only takeaway from the current situation is a bit like the Back to the Future gab… “where we’re headed, there aren’t any roads”.

(Almost, the actual quote from the movie is “where we’re heading, we don’t need roads”)

Read a report from The Thaiger about the effect of Coronavirus on the Thai property market HERE.

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Read more headlines, reports & breaking news in Phuket. Or catch up on your Thailand news.

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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Coronavirus (Covid-19)

All new arrivals to Thailand banned, effective immediately

Greeley Pulitzer

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All new arrivals to Thailand banned, effective immediately | The Thaiger
PHOTO: Asia Times

Effective today, and until at least April 15, Thailand will bar all arrivals due to the increasing number of Covid-19 coronavirus cases.

Thaveesilp Wissanuyothin, spokesman of the Center for Covid-19 Situation Administration, says that PM Prayut Chan-ocha has ordered the Ministry of Foreign Affairs to issue a new directive prohibiting any new arrivals.

“The spread of Covid-19 must be stopped. The Ministry of Foreign Affairs will give more details on the directive. However, people who already have permission and who need to enter Thailand are exempted, but there will be a strict process via the embassy.”

Thaveesilp says Thais returning from overseas and foreign visitors are partly responsible for the continuing rise in the number of new infections.

“Though the number of travellers from overseas has significantly declined, the PM believes more needs to be done to stem overseas arrivals in order to further flatten the curve.”

He says the PM wants to see stringent measures imposed on overseas arrivals between April 2-15. The Foreign Ministry has been tasked to find out ways to implement the directive from the PM.

Asked whether the government is moving toward imposing curfew to enforce its “stay at home” measure, Thaveesilp said “just wait for what the prime minister will have to say today.”

He says 4 of the 6 Thais who recently returned from Italy tested positive for the virus, with another 50 people who have come into contact with them being quarantined.

As many as 47 of the 132 Thai Muslims in southern Thailand who returned from a religious function outside Kuala Lumpur last month have also tested positive and 4 have died. More than 1,000 people had to be quarantined as a result.

Four executives of the CP Group, Thailand’s largest private company and one of world’s largest conglomerates, returned recently from negotiating the Tesco deal and one of them died after being infected with the virus.

Thaveesilp says these figures only reinforce concerns that the spread of the deadly virus cannot be curbed if people from overseas continue to be allowed in without more stringent screening.

He says the PM told the Foreign Ministry to further tighten restrictions on Thais planning to return from abroad, asking them to postpone their trips until after April 15. This new measure, he said, applies to all Thai citizens abroad, including American Field Service exchange program students who are living in the US with their host families, with the exception for those already issued with permits to return to Thailand.

The total number of coronavirus cases in Thailand hit 1,875 today with 104 new infections confirmed over a 24-hour period, a fifth consecutive drop in the daily number. 3 more deaths were reported.

Source: The Nation | Thai PBS World

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Coronavirus (Covid-19)

New Covid-19 test kits produced in Thailand

Anukul

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New Covid-19 test kits produced in Thailand | The Thaiger
PHOTO: chiangmainews.co.th

Today the first batch of 20,000 new Covid-19 test kits, developed by a joint effort of the Siam Bioscience and The Department of Medical Science, has been delivered to Government House. Each locally produced test kit costs around 1,500 baht each, while imported ones will cost about 4,500 baht each.

The association of Siam Bioscience and The Department of Medical Science aim to produce 20,000 test kits every week, and once 100,000 kits have been produced, they will be distributed among 100 hospitals nationwide.

Meanwhile, the Government Pharmaceutical Organisation yesterday approved the urgent purchase of 400,000 N95 masks and the same number of personal protection suits from China. A budget of 660 million baht has been earmarked for the purchase. China will send 150,000 by air within this week and will ship 250,000 in the next few weeks.

A similar story where Chulalongkorn University has developed, and currently testing, a new blood test for the Covid-19 virus. The “Baiya Rapid Covid-19” testing strip uses blood drawn from the fingertip and delivers results in 10 to 15 minutes.

SOURCE: The Nation

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News & Updates

National curfew announced. Takes effect tomorrow.

Greeley Pulitzer

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National curfew announced. Takes effect tomorrow. | The Thaiger
PHOTO: Bangkok Jack

Thailand will announce a nationwide curfew between 10pm – 4am starting tomorrow (Friday) to try to curb the spread of the Covid-19 coronavirus. The government made the announcement in a statement today.

There will be some exceptions to the new measure, including the transport of medical supplies, movement of people into quarantine, patients and travel of medical personnel, according to the statement presented this afternoon.

“The prime minister will make the announcement this evening on national television around 6 pm”

Thailand has been under a national state of emergency since last week and has closed its borders to foreigners.

SOURCE: Reuters

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