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The future of Thailand’s hotels, tough times ahead – VIDEO

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Thailand’s hotels are facing a very dark time with the Thai borders still largely closed and many of them remaining closed for business. Whilst some local domestic stimulus has provided a bit of a minor reboot for the battered industry, there is still more than 90% of the rooms in the country remaining unoccupied with staff unemployed, debts and leases unpaid.

C9hotelworks.com MD, Bill Barnett, is of the region’s most respected consultants for the industry and has been in constant contact with them during the Covid-19 pandemic.

Phuket’s hotel industry is reaching breaking point and drastic economic support from the government will be needed for it to survive the high season. The warning from a slew of industry leaders who fear the island has reached a crucial turning point.

In the wake of the controversial “Phuket Model” international travel reopening scheme, reality is biting back as hotels in Thailand’s leading resort island are unable to sustain operating viability based on domestic tourism.

According to the Airports of Thailand, passenger arrivals at the aviation gateway have plunged 65% year-on-year from January through July of this year.

What is clear is that the 86,000 rooms in Phuket’s registered accommodation establishments cannot realistically break-even or even be cash-flow positive with only domestic demand. This realistically could set the scene for 50,000 job losses in the hotel sector this year if there’s no support forth coming or international visitors are not allowed in.

One of the green shoots is the Alternative Local State Quarantine program, with over 60 island properties applying. While this program is meant to emulate the ASQ program in Bangkok, given there are no direct international flights to Phuket, the government needs wider support of a return of international travellers at a local level and implement inter-ministerial coordination before it could materialise. But this may take months.

Anthony Lark, President of the Phuket Hotels Association that represents 78 hotels in Phuket said: “The math simply doesn’t work with single-digit occupancies being reported. No amount of induced local demand can prevent the dramatic continued loss of jobs and rapidly eroding financial crisis for owners and operators. We strongly advocate a safe, pragmatic, and strategic reopening for foreign travellers.”

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9 Comments

9 Comments

  1. Avatar

    murika

    September 25, 2020 at 12:45 pm

    why are you lying, payut has already organised all for arrival of super rich tourist in 2021, he say they will come and spend 800 k bath per month, that will compensate largely for the 40 millions tourist lost, how dare you defy the vision of our supreme leader, he know all, and life unfold over his willpower.

    • Avatar

      Stefan Svensson

      September 25, 2020 at 3:02 pm

      Oh yes! Sorry but you have to wake up now! Who told you this lie ?
      Better keep it closed so they have a reason to wish the tourist will come back.

    • Avatar

      Sami

      September 26, 2020 at 12:39 am

      You must be the dumbest person not only in Thailand but in the entire universe…Dont make a fool of yourself and learn to keep your mouth shut and accept facts…no matter how bitter the truth is about your government!

      • Avatar

        murika

        September 26, 2020 at 11:23 am

        i thought my comment was quite obviously ironic, maybe you are dumber than me to not understand it !

  2. Avatar

    Mark Davies

    September 25, 2020 at 1:04 pm

    …..”given there are no direct international flights to Phuket”

    What about Singapore, Hong Kong, KL, India, Russia, Middle East, China, Korea

  3. Avatar

    Toby Andrews

    September 25, 2020 at 1:14 pm

    Are these the same hotels that grabbed the foreigners’ deposits when they could not travel to Thailand?
    Are these the hotels that profited when foreigners could not leave Phuket?

  4. Avatar

    Jason

    September 25, 2020 at 4:49 pm

    What is happening in Phuket is the logical conclusion of the covid 19 lockdown of Thailand. The method of suppression and then eradication of the virus to a point where only foreign arrivals have it has seen Thailand with one of the lowest numbers of active cases in the world. The culture of obedience has made this possible. The people do what they are told to do. But at what cost?

    We are now seeing the cost. Closed businesses, people unemployed, some starving. What we haven’t seen to date is a balance. A balance between peoples livelihoods and control of the virus. So far, the virus has control of everything and livelihoods are being sacrificed to maintain a zero community transmission situation. (I do have my doubts about the “Zero”. Without widespread testing of people who may have symptoms, how do you really know?).

    The choice to achieve a balance rests, like it or not, with the government. But if the government does nothing and people continue to close businesses, lose jobs and starve, things might reach a critical point. I do hope that the government will quickly move to devise a plan where foreign tourists can enter at a rate that willboth keep the country safe and at the same time allow it people to return to their livelihoods.

  5. Avatar

    EdwardV

    September 26, 2020 at 2:38 am

    The only way to help most of these hotels is to reopen the country in a safe but quick and large way. Granted not an easy thing to do, but there is no other way. Just giving them low cost loans will just postpone the inevitable bankruptcy. They are in the business of renting rooms to tourists and since the domestic scheme failed miserably there is only one other alternative. So the only question then is can Thailand open up fast enough, safe enough and in a large enough number to save them before it’s too late.

  6. Avatar

    Nipral

    September 26, 2020 at 3:03 pm

    Thanks to the moronic government’s plans (compulsory expensive inappropriate quarantine,
    fake insurance, charter flights, and probably more to come)the 2020/2021 high season is lost. We have all made our bookings without considering Thailand. The next one will probably be alike and so on…..
    Incompetence and corruption drive nowhere but to civil war.
    Nevertheless people in Thailand are starving and suffer.
    The PM and his shameless followers have food on their plate, roof over the head and increasing substantial bank accounts. As Trumpy would say “it is what it is” !!!!

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Thailand News Today | STV updates, fuel tanker explodes, 19 dead in Viet typhoon | October 29

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Thailand News Today | STV updates, fuel tanker explodes, 19 dead in Viet typhoon | October 29 | The Thaiger

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“Pattaya Model” to focus on Special Tourist Visa visitors from China and Russia

Firstly the Phuket Model, now the Pattaya Model as the eastern seaboard city wants to cash in on the new Special Tourist Visa scheme to help boost the local economy.

City officials say they’ll focus on drawing in Chinese and Russian tourists on the new long stay visa. The city mayor says that last year, there were 3 million Chinese tourists visiting Pattaya, followed by Russian tourists with 1.1 million.

Potential travellers would be from cities in Russia and China that are considered to be at a low risk for Covid-19. The mayor mentioned St. Petersburg in Russia and Guangzhou, Shanghai and Shenzhen in China.

Along with accommodating tourists under the Special Tourist Visa, the mayor says they are planning for other travellers that are approved by the Centre for Covid-19 Situation Administration. The nearest international airport to Pattaya, U-Tapao, remains closed to international traffic.

Cruise ships and yachts to dock in Thailand, visitors to enter on Special Tourist Visa

A special tourist visa updates and it seems the Thai government is opening up categories that would be able to apply for the new STV.

Now cruise ships and yachts will be allowed to dock in Thailand and visitors will be allowed disembark under the STV. The new measure will be made official in the next 30 days.

Captains, crew and passengers travelling from countries considered at low risk will be able to dock in Thailand and enter the country, of course after doing their 14 day quarantine and all the other STV paperwork.

Fuel tanker explodes after collision in Buri Ram

A fuel tanker has exploded after a collision with a trailer truck, causing both vehicles to be engulfed in flames in a series of explosions in Buri Ram, north east Thailand.

Fuel from the 40,000-litre tank spilled out onto the road, spreading about 1 kilometre to nearby homes and into the sewers. 20 cars, motorcycles and tuk tuks parked along the road were damaged or destroyed in the conflagration. Many people were injured, currently we don’t don’t have the latest toll.

The fuel tanker truck and the trailer truck collided on Highway 24. The drivers were able to flee before the first explosion.

50 fire engines responded to the fire and the road was closed off for a radius of 5 kilometres. It took firefighters more than 4 hours to extinguish the fire.

Court bans Thailand’s first transgender MP over alleged media interests

An MP from the Move Forward Party, one of the opposition parties, has been banned and could face jail time after the Constitutional Court found the MP guilty of violating a law prohibiting media shareholdings for MPs.

57 other MPs were acquitted over the same offence.

Tanwarin is Thailand’s first ever openly transgender MP in the House of Representatives and an advocate for LGBTQ rights. The MP is also a former actor and filmmaker. The Court looked into lists of shareholders and found “irregularities,” saying information had been fabricated to make it appear that she wasn’t associated with the media companies.

The Election Commission may also decide to press charges on Tanwarin. If the commission finds her guilty of breaking the law on elections, the MP could face a penalty of up to 10 years in prison, a 20,000 baht fine and a ban from taking part in elections for 20 years.

Thanathorn and 4 others charged over Pathumwan flash rally

Meanwhile, the Pathumwan Municipal Court has accepted for trial the prosecutors’ indictment of Thanathorn, the former Future Forward leader, and four others relating to a flash protest rally on the Pathumwan skywalk last year.

All five were present at the court today. The indictment concerns their rally on the elevated BTS walkway at Pathumwan intersection on December 14 last year.

Prosecutors charged them with organising the rally without giving prior notice, organising a rally that affected train services, organising a rally that blocked people from using a public place, using loudspeakers without permission, rallying within a 150 metre radius of a palace, and resisting officials’ orders to stop the rally.

19 dead, 40 injured, many missing in Vietnam typhoon

Vietnam deployed soldiers and heavy machinery to search for survivors after landslides triggered by torrential rains from Typhoon Molave, one of the strongest typhoons to hit the region in decades.

Landslides, which hit remote areas in the central province of Quang Nam on Wednesday, killed at least 13. Rescue efforts are being hampered by bad weather at the tail end of the storm.

The Vietnamese government said Typhoon Molave had left millions of people without electricity and damaged at least 56,000 houses.

26 fishermen also remain missing after their boats sank when trying to return to shore on Tuesday. Molave is moving westward through Laos now and will dump rain in northeastern Thailand into the weekend.

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Cruise ships and yachts to dock in Thailand, visitors to enter on Special Tourist Visa

Caitlin Ashworth

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Cruise ships and yachts to dock in Thailand, visitors to enter on Special Tourist Visa | The Thaiger
PHOTO: Unsplash: Josiah Weiss

Cruise ships and yachts will be allowed to dock in Thailand and visitors will be allowed disembark under the Special Tourist Visa. The new measure hasn’t been made official yet, but it will go into effect 30 days after it’s published in the Royal Gazette.

The Cabinet approved the new guidelines yesterday which allows captains, crew and passengers travelling from countries considered at low risk for spreading Covid-19 to dock in Thailand and enter the country, according to deputy government spokesperson Traisuree Taisaranakul.

Visitors must go through a 14 day quarantine. Those on yachts will quarantine onboard before stepping onto Thai soil, according to the Bangkok Post. They must also have Covid-19 health insurance of $100,000 USD as well as local health and accident insurance. Proof of advance payment for anchoring the liner will also have to be provided.

The Special Tourist Visa allows a 90 day stay that can be renewed twice, adding up to around 9 months. So far, only 2 flights of foreigners on the Special Tourist Visa have arrived after a 7 month ban on international tourists.

SOURCES: Bangkok Post | Nation Thailand

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Thailand

Fuel tanker explodes after collision in Buri Ram

Caitlin Ashworth

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Fuel tanker explodes after collision in Buri Ram | The Thaiger
PHOTO: MGR Online

A fuel tanker has exploded after a collision with a trailer truck, causing both vehicles to be engulfed in flames in a series of explosions. Fuel from the 40,000-litre tank spilled out onto the road, spreading about 1 kilometre to nearby homes and into the sewers. People trying to douse the spreading flames found they were just pushing the flaming fuel further down the road, 20 cars, motorcycles and tuk tuks parked along the road were damaged or destroyed in the fire. Many people were injured, but there is no exact count.

The fuel tanker truck and the trailer truck collided on Highway 24 in the Isaan province Buri Ram. The drivers were able to flee before the first explosion. There were a series of explosions as the fuel spread and nearby residents fled their homes. People tried to put the flames out with tap water, but fire continued to spread.

50 fire engines responded to the fire and the road was closed off for a radius of 5 kilometres. It took firefighters more than 4 hours to extinguish the fire. The oil company was called to safely unload 30,000 litres of fuel that was left in the tanker.

SOURCE: Bangkok Post

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