Thai hoteliers worry foreign businesses could harm tourism image

Concerns have risen among Thai hoteliers over the increasing use of Thai nominees by foreign businesses, which they fear may tarnish Thailand’s tourism reputation. The Thai Hotels Association’s (THA) monthly sentiment index highlights this growing unease, especially as the high season begins.

THA President Thienprasit Chaiyapatranun revealed that nearly half of Thailand’s hotels express apprehension about illegal foreign investments, particularly from Chinese entrepreneurs. This sentiment was reflected in the hotel operator business sentiment index for October.

Among four-star hotels and above, 53% do not perceive these businesses as direct competitors due to differing target markets. However, they remain concerned about the potential negative impact on Thailand’s tourism image, which could lead to price wars in certain destinations, Thienprasit said.

“The government should put in more effort to crack down on those illegal businesses as they will impact the whole tourism industry.”

Three-star hotels and below are particularly worried about price competition with illegal hotels, which they see as direct competitors. These concerns are more pronounced in the central and northern regions, where the impact on the tourism industry’s image is felt most acutely.

Entering the high season in October, the national average occupancy rate for hotels improved to 57.6%, up from 54% in the same period last year, with expectations for November reaching 68%.

Four-star hotels and above demonstrated stronger performance in October, boasting a 60.2% occupancy rate. In contrast, three-star hotels and below recorded a 52.7% occupancy rate.

Despite higher guest numbers, hotels with more than four stars acknowledged challenges related to labour shortages. Although they can accommodate guests, limited staffing affects the quality of service.

Thienprasit emphasised the need for government-led training programmes to attract more workers to the hotel industry, particularly for roles such as cleaners, waiters, and waitresses, which many hotels currently lack, reported Bangkok Post.

Additionally, hoteliers urge relevant officials to stabilise the Thai baht, ensuring minimal fluctuation compared to other currencies. They also call for more rapid approval of soft loans for businesses affected by flooding, allowing them to recover in time for the high season.