News Forum - Majority of Thailand hotels not profitable under Test & Go

[Thaiger]

A majority of hotels in Thailand are in the red, following the relaunch of the Test & Go program earlier tis year, the Bangkok Post reported. According to a survey of 127 hotels by the Thai Hotels Association (THA) and the Bank of Thailand, sixty-five percent of hoteliers say they were unable to turn a profit in February, as average occupancy remained below 30%. The president of the Thai Hotels Association said that three fourths of the 12 hotels surveyed expected a 30% vacancy rate, which would have been enough to break even, but only 37% of them achieved the […]

The story Majority of Thailand hotels not profitable under Test & Go as seen on Thaiger News.

Read the full story

[EdwardV]

Honestly not surprised at all. As long as the test is part of the deal, many tourists will go somewhere else. 

[DoUKnowWhoIAm]

1 hour ago, Thaiger said:

Hoteliers blamed low numbers of travellers on Thailand’s restrictive travel procedures, notably Thailand Pass registration and RT-PCR testing.

All of it has to be scrapped 1 April, but I won't hold my breath. More likely, theyll keep Thailand Pass and PCR on departure and swap to ATK and arrival. And lower the insurance demand to 10.000usd

[LoongFred]

10 minutes ago, DoUKnowWhoIAm said:

All of it has to be scrapped 1 April, but I won't hold my breath. More likely, theyll keep Thailand Pass and PCR on departure and swap to ATK and arrival. And lower the insurance demand to 10.000usd

The low hotel occupancy has little to do with TP etc. People aren't travelling as much and have less disposidable income. Covid shut the world down and kept people from working. Now that things are easing most people are trying to make up for lost pay and as a result aren't travelling as before. It's going to be 2+ years before normal tourism starts to rebound.

This is the low season an hotel  vacancies are usually high, so the story give a false impression.

 

[Cabra]

A collosal failure, really. Assuming they actually wanted tourist in the first place. My guess is the majority of TNG/ASQ travelers over the last 9+ months have been the ~3 million expats, and stranded Thais, coming and going. Until TAT (and the rest of the brain trust) realize that the only way to spur the proverbial flock of tourist is to end ALL testing on arrival, vaccine requirements (the vaccine parade is over), and mandatory insurance (which all tourist view as a scam), tourism will sputter.

[Cathat]

International arrival's to thailand were down about 80 percent a few weeks ago so this comes as no surprise.

For the government to add extra fees for visitors coming to thailand as they have proposed at this time is insane.

If anything they should be reducing or waiveing fees aimed at travellers to get the thai travel and tourism industry back on its feet again and then slowly introduce them.

Edited March 7, 2022 by Cathat

[Alavan]

5 hours ago, LoongFred said:

The low hotel occupancy has little to do with TP etc. People aren't travelling as much and have less disposidable income. Covid shut the world down and kept people from working. Now that things are easing most people are trying to make up for lost pay and as a result aren't travelling as before. It's going to be 2+ years before normal tourism starts to rebound.

This is the low season an hotel  vacancies are usually high, so the story give a false impression.

In Europe covid didn’t keep the people from working, with the exception of those in the nightlife, party and hotels/restaurants. Most people did their office work from home. 
They want to give more for holidays now, money they couldn’t spend during that time. Problem for Thailand is they still have that restrictive TP. Ski holidays, tropical destinations are doing well now.

[Stardust]

7 hours ago, Thaiger said:

A majority of hotels in Thailand are in the red, following the relaunch of the Test & Go program earlier tis year, the Bangkok Post reported. According to a survey of 127 hotels by the Thai Hotels Association (THA) and the Bank of Thailand, sixty-five percent of hoteliers say they were unable to turn a profit in February, as average occupancy remained below 30%. The president of the Thai Hotels Association said that three fourths of the 12 hotels surveyed expected a 30% vacancy rate, which would have been enough to break even, but only 37% of them achieved the […]

The story Majority of Thailand hotels not profitable under Test & Go as seen on Thaiger News.

Read the full story

Where are all this rich high end tourists they predicted? Still in Monacco, Europe, Maledives , caribeans, uuh oh why?

[Stardust]

16 minutes ago, Alavan said:

In Europe covid didn’t keep the people from working, with the exception of those in the nightlife, party and hotels/restaurants. Most people did their office work from home. 
They want to give more for holidays now, money they couldn’t spend during that time. Problem for Thailand is they still have that restrictive TP. Ski holidays, tropical destinations are doing well now.

The standards, quality, safety, are much higher in destinations like spain, Italy, etc. And thats the tourism there is even more than before covid. Good infrastructure, clean, not polluted like Thailand, not all this garbage everywhere etc.in Thailand prices went up but the quality not, infrastructure down, more polluted than before, no proper side walks for the tourists, more restrictions and paperwork etc etc. 

[riclag]

Wont be getting the people(russian & ukraine) who have been inconvenienced by the financial controls due to the putin crisis .

So ya got the thai covid restriction schemes ,the putin situation and as being reported on another thread phishing email scams!

 

[Grumpish]

Doesn't surprise me - a Phuket hotel I stayed in back in December had only just re-opened, and for the first couple of days I was their only customer. People are travelling, the flight from Doha to Manchester that I was on a couple of days ago was packed, but mainly with Middle Eastern and South Asians who were most likely visiting family. Europeans are looking to travel again, but for now are choosing destinations with less obstructive entry requirements.

[Jafagreg]

There are probably many different reasons why people are currently not travelling at the moment. Some will be watching the rate of omicron spread, others will be put off by some of the hoops they have to go through to enter Thailand. Many people will have seen their income drop over the past couple of years due to a lack of work. For me, one of the biggest issues has been my own country's border restrictions but as these are being relaxed I am hoping to return to Thailand later this year. 

[Wfh]

So true, the entry protocols kinda prevent me even if I plan to travel to Thailand next month. I'm waiting for removal of entry restrictions. If not, I'd probably look somewhere else easier.

[Convert54]

As an investor that withdrew  from the Hotel Industry  in 2018 I  can attest to the fact that the sheer volume of rooms coming online in most  popular tourist locations at that time was squeezing even viable operation  cost down to no star level . The expectations promoted within the market that created the excess prior to the devastation of  the pandemic in terms of tourism in general in hindsight to many were already over sold. Sadly  for my interest which was in  the budget  margin that in the devolution of demand and the desperation to fill rooms created a market for  3-4 star accommodation at no star  cost.

Due to criteria  in my involvement I was  able to exit  with no culpability  for losses in any way but I know of many who were left literally destute .

[AdvocatusDiaboli]

On 3/7/2022 at 3:20 PM, Thaiger said:

A majority of hotels in Thailand are in the red, following the relaunch of the Test & Go program earlier tis year, the Bangkok Post reported.

All bar those in Phuket that had a sandbox to prop up there profits ….. and those in the RED …. Chinese Owned ?

[Soidog]

On 3/7/2022 at 10:13 PM, Alavan said:

In Europe covid didn’t keep the people from working, with the exception of those in the nightlife, party and hotels/restaurants. Most people did their office work from home. 
They want to give more for holidays now, money they couldn’t spend during that time. Problem for Thailand is they still have that restrictive TP. Ski holidays, tropical destinations are doing well now.

Absolutely spot on comment. People in Europe have more money to spend on luxury items now, than at almost any other time. For nearly two years they haven’t been going out to bars and restaurants. They haven’t been able to go shopping buying clothes and other luxury items. The pent up demand for travel is overwhelming some airlines capabilities. Thailand just can’t think strategically at all. It’s simply not in their make up to do so. Consequently they are about to miss out on the majority of that demand. 
 

Not to worry. They will also be of the opinion that come the high season tens of millions will rush to these shores as it’s the most desirable high end holiday destination in the world. Yeah right !!

[AdvocatusDiaboli]

5 minutes ago, Soidog said:

For nearly two years they haven’t been going out to bars and restaurants.

Because the Bars and Restaurants haven’t been open to entertain anyone … Legally at least … Bet the Department that is counting the statistics here have included every place that has shut down because no monetary influx.  But then …. 

 

8 minutes ago, Soidog said:

Not to worry.

Don’t worry Be Happy.

[Soidog]

1 minute ago, AdvocatusDiaboli said:

Because the Bars and Restaurants haven’t been open to entertain anyone

Yes, that was my point. In most European countries all forms of entertainment were essentially closed or people decided to stay home and stay safe during Covid. The result is that households have been saving hundreds of Euros every month for at least 18 months. They all now want to go on holiday, which they will do. To places like Greece, Spain, Maldives, Caribbean etc