Chiang Mai’s small to medium hotels face challenges

FILE PHOTO (This hotel is not for sale!)

Chiang Mai’s small to medium accommodation sector is facing fresh challenges as the tourist mix in the northern city changes, and shrinks in arrival numbers.

The fallout from declining tourist arrival numbers, especially Chinese since the Phuket Phoenix tourist boat tragedy in mid-July, is forcing more than 10 small hotels and hostels in Chiang Mai to put their properties up for sale.

According to Nikkei Asian Review, the offering selling prices range from a few million baht up to 50 million baht as the hotel or hostel operators have been hard hit by the sharp drop of tourists arrivals from China since July 5 since the boat tragedy in the Andaman Sea south-west of Phuket when 47 Chinese tourists drowned.

One property agency said this phenomenon of small hotels and hostels offering their properties for sale was unprecedented.

According to official TAT statistics of tourist arrivals this year, Chinese tourist arrivals during the third quarter this year dropped 8.8 percent compared to last year’s figures.

Breaking down on monthly basis, tourist arrivals from China in July dropped 0.9 percent, 11 percent in August and 15 percent in September.

Tourism and Sports Permanent Secretary Pongpanu Sawetroon said tourist arrivals in October numbered 2.71 million representing 0.51 percent drop compared to the same period last year – the first drop in ten months.

But he says tourist spending grew 0.66 percent with Chinese tourists being the top spenders.

SOURCE: Nikkei Asian Review