Tourism operators in Phangnga pivoted from European guests to other markets to stay afloat during the lower-than-expected low season.
Nearly 40% of hotels report a sharper decline in guest numbers than expected last month due to the Middle East conflict, prompting them to offer deeper discounts while cutting costs to stay afloat.According to the Thai Hotels Association and a recent Bank of Thailand survey, hotels projected a year-on-year decrease for both local and foreign guests in the third quarter, particularly in Phangnga, where hotel operators expect an average occupancy rate of only 20%, attributed to its heavy reliance on the European market.
The survey of 148 hotels nationwide showed the average occupancy rate for June was 52%, while the forecast for July is 53%, lower than last year.
While it is the low season, the persistent Middle East conflict also hampered tourist demand. Some 88% of hotels expect fewer guests, while 38% said the consequences were worse than initially expected.
Most hotels have discounted their room rates and increased marketing efforts to lift sales, while also cutting labour costs to maintain cash flow and liquidity, the survey noted.
