Thailand hotels face delays in 1.7 billion baht subsidy scheme
THA president expects quick claims of 500,000 privileges once registration issues resolve
Hotel operators in Thailand are experiencing delays in the approval process for the initial phase of the 1.7 billion baht co-payment scheme, while some online travel agents (OTAs) are offering prices lower than those under the government’s subsidy.
The scheme, aimed at local tourists, opened registration for the public yesterday, July 1, after hotels were able to register since June 25.
According to Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA), only 2,000 hotels have registered across the country.
The Tourism Authority of Thailand (TAT), which is overseeing the project, encountered numerous complaints due to technical issues on the first day of registration. Hotel operators also faced challenges in joining the scheme.
Thienprasit said that the strong interest from local tourists suggests that once registration issues are resolved, the 500,000 available privileges will likely be claimed quickly. However, hoteliers are restricted from adjusting prices or using dynamic pricing within the programme, as listed room rates cannot be modified.
This restriction allowed OTAs to display lower prices yesterday, as hotel bookings did not meet expectations on the first day. OTA prices remain flexible, adjusting to real-time demand, especially during the low season.
Paisarn Sukjarean, President of the upper northern chapter of the THA, reported that only 10 hotels in Chiang Mai were approved by early this week. He attributed the delay to verification processes intended to prevent fraud, similar to issues faced in a previous government scheme, reported Bangkok Post.
Some hotels have used this situation to increase room prices within the co-payment scheme, as they cannot adjust prices later, leading to higher costs compared to OTA offerings.
“This scheme’s process is more complicated than the previous project,” Paisarn said. “We urge the TAT to streamline the process to assist operators eager to join and support their businesses during this slow tourism period.”
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