Udon Thani hotel calls for delay in electricity rate hike

A prominent hotel in Udon Thani urged the government to delay the planned electricity rate hike, citing concerns about the current purchasing power of consumers. They argue that customers are only spending on necessities, and an increase in electricity costs could further impact the number of patrons using their services.

Apicha Veerachatiyanukul, the managing director of Udon Plaza Co., Ltd., which operates UD Town, the Moko Hotel, and the Montathip International Convention Centre, highlighted that while the booking situation for rooms and event spaces remains vibrant, the potential increase in electricity tariffs poses a significant challenge. The hotel and convention centre continues to attract both private sector clients and government agencies for lodging and conferences, with room bookings extending to August and full bookings on Fridays and Saturdays in September.

International tourists are also staying longer, extending their visits from two to three days to about five days, with the majority of these tourists coming from China, Korea, and Europe. However, inside the UD Town shopping centre, consumer spending is more cautious. Customers are taking longer to decide on purchases and are focusing mainly on essential items.

The proposed electricity rate hike, set to take effect from September to December, has drawn concern from Apicha. She noted that such an increase would add to the operational costs for businesses, especially those like shopping centres and hotels that consume substantial amounts of electricity.

“If the government proceeds with the electricity rate hike, it will be challenging to immediately pass these increased costs to customers, which could lead to a decrease in service usage.”

Apicha suggested that if the government must increase electricity rates, it should introduce compensatory measures to help businesses manage their costs. Tax reductions or other forms of financial relief could help mitigate the added burden and ensure that both businesses and consumers are not adversely affected.

This appeal to the government is rooted in the reality that while the economic activity within the hotel and convention sectors is robust, any additional cost pressures could disrupt the delicate balance needed to sustain business operations and customer satisfaction, reported KhaoSod.