BANGKOK’S hotels, which have suffered low occupancies in recent months, will not be able to fully recover until a peaceful resolution is found to the country’s political crisis. In the meantime, traveller confidence in the destination must be restored, said industry leaders at the Thailand Tourism Forum yesterday.
Dillip Rajakarier, CEO of Minor Hotel Group, which saw occupancy slide to 20 per cent at its worst affected properties in Bangkok, questioned the effectiveness of Tourism Authority of Thailand pumping millions of baht into publicity campaigns.
“What’s the point of marketing Bangkok when people are worried about travelling here?” he said. “We need something like an insurance scheme, underwritten by the government, so we can reassure guests that if something happens while they are staying with us, they will be put on a flight back home without having to pay for it.”
Jesper Palmqvist, Asia-Pacific area director at STR Global, said occupancy across Bangkok hotels fell to 54 per cent during February and March, the sector’s worst performance in 15 years.
However, while occupancy had plummeted, hoteliers said they had managed to maintain rates. “Rates were higher than we thought they would be in Q1,” said Peter Henley, president and CEO of Onyx Hospitality Group.
Clarence Tan, COO Asia Australasia at InterContinental Hotels Group, said lowering rates would not persuade tourists to return to Bangkok if they were avoiding the destination due to perceived safety risks.
“The only thing we can do is to constantly send out consistent messages that Bangkok and Thailand are safe,” he said. “If we do not do that we are dead.”
Nevertheless, David Shackleton, COO of Dusit International, said: “I’m a firm believer that Thailand will bounce back… However, key markets such as the Chinese will not return to Bangkok until the protesters leave Lumpini Park.”
Dusit’s key Bangkok property, which is located opposite Lumpini Park where the remaining government protesters are encamped, saw occupancy fall below 30 per cent from January to March.
