Thai hotel bookings slump

Bad news, but the inevitable has happened, besides let's remember it is still low season here in Thailand, as well as in Vietnam, Laos and Cambodia. Soaring fuel costs and especially political situation in Thailand is quickly to blame for hotel's occupancy rates.

I can confirm however that most of my friends in Europe have no clue what's going on here as TV networks over there are too busy covering their own little domestic stories and of course Obamas' historical trip this week.

THA president Prakit Chinamourphong reported during the Thai Hotel Association Meeting held at the A-One Hotel in Bangkok on 22 July, that the average hotel occupancy rate for the first six months of this year stood at 69% for an increasing of only 1% over the same period last year.

He reported that issues such as the economic slowdown, soaring fuel costs, and Thailand’s political situation are still key negative factors for the tourism business.

He said that over the next two years, it is expected that the country will have more 30,000 new four-to-five starts hotel rooms, of which 15,000 will be in Bangkok, and if these negative factors persist, it could effect future investment in hotels development.

Mr Prakit reported that forward bookings for the coming high season currently stood at around 70% occupancy, while during the same period last year, hotels achieved over 80% in advanced bookings for high season.

Mr Prakit said that considering the business performances by region, hotels in Bangkok are putting in a satisfactory performance while the report shows July’s occupancy rate in Phuket standing at 50%, Krabi at 30%, Hua Hin at 40%, Pattaya at 47%, Chiang Mai at 40% and Kao Lak at 12%.

I am sure once November and December are closing in, situation will change again for better. Right?