Thailand Hotel Occupancies Down To 20%
Mandarin Oriental Hotel, Bangkok
Thailand is probably suffering more than most in South East Asia during these difficult economic times and I have touched on some of the reasons behind this in a previous post.
It comes as no surprise then to read that, reportedly, more than 100 hotels in Thailand are up for sale, mainly in Bangkok, Phuket, Koh Samui, Hua Hin, Pattaya and Chiang Mai. The very places, of course, that have been the main beneficiaries of tourism over the last 20 years or so.
In Bangkok Mr Kurt Wachtveitl the General Manager of the Mandarin Oriental reportedly told journalists that ‘Business is very, very bad, and the future looks absolutely bleak,’ and estimated that hotel occupancy rates were just 20 per cent across the board. As an aside, Mr Wachtveitl (72) is retiring this summer after 41 years as the hotel’s GM: I only met him once but I found him to be very gracious and I know he will be missed by many in the industry. I wish him a long and happy retirement.
The idea of retirement might seem appealing to many in the tourism industry at the moment, especially in Thailand. The industry there is reeling from a succession of blows the latest of which has been swine flu.
Surely part of the problem has to be an over-supply in the industry. We have only to look at the number of hotels being squeezed onto hilltops in Phuket and Ko Samui, for example, to realise that every last drop of the tourist dollar is being squeezed from the land.
It seems to be ‘human nature’ that the hint of a profit drives us crazy and we chase the dream regardless; hence, perhaps, the British fascination with property. Unfortunately, just as that particular bubble has burst here so too the tourism bubble has burst in Thailand.
Granted no one (or at least not many) could have predicted the challenges that we are all facing now, but common sense should tell us that regardless there is a tipping point above which tourism is no longer sustainable.
Thailand is blessed with many attributes, not least of which of course is its stunning coastline in the south, and I know that the destination will bounce back. Now, though, there is an opportunity to stand back, take stock and plan for a sustainable tourism industry in Thailand. Will the opportunity be taken?
