Two additional long weekends in November and December are announced by the Cabinet, but the country's hotels are worried that not all operators can benefit. To further boost domestic tourism, the additional holidays, operating from November 19 to 22, and from December 10-13, are being launched. The Thai Hotels Association points out that certain properties would profit more than others, but they have been granted a tentative welcome by hotel operators.
The Bangkok Post states that owing to a variety of holiday weekends taking place lately, including the Songkran substitution holidays in July and again earlier this month, the THA is worried about the continued buying capacity of domestic visitors. The association suggests there is a risk that during the November and December holidays, only those who can afford another vacation will fly, and their purchasing power implies they are more likely to book higher-end, 5-star hotels.
In addition to hotel lodging and the expense of recreational activities at their venue, THA founder, Marisa Sukosol Nunbhakdi, says not everybody would be able to afford air tickets. They are much more inclined to prefer luxurious lodging if only the wealthiest will fly.
"Once, after enrolling in domestic stimulus campaigns, luxurious hotels have more reasonable rates, visitors who still have good purchase power would choose these hotels first."
Marisa adds that rivalry is difficult for all assets that share the same limited pool of target buyers, including Thai residents and ex-pats. She calls for the government to offer extra benefits to support operators in the 5-star range of luxury. The THA agrees that it is possible that the November and December holidays would give hotels in the north of the country a lift, which is normally common throughout the winter season.
Hotel bookings were up 20 to 30 percent during the recent holidays, with some hotels experiencing a 40 percent raise due to their venue. The massive drop in foreign tourism, Marisa notes, implies that properties are now dependent on government conventions and workshops to make up some of the shortfalls. The pause in budget allocation from October would, however, have a negative effect.
"Hotels may have higher state agency bookings for October, but this section has been stagnated by the delayed program."
With several operators already dealing with debt, the THA is calling on the Ministry of Finance to prolong the debt moratorium and set up a tourism fund whereby hotels will use their securities to take advantage of loans and, until financial stability returns, repurchase the securities.
Source Thaiger
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