TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

Is A Forced Closure Order For Phuket Hotels Needed?

Category: Hotels, Posted:10 Jan 2021 | 18:18 pm

On Saturday 9th January a new order from the Phuket governor that requires a 14-day quarantine for arrivals from Thailand’s ‘red zone’ areas has thrust the island’s hotel and tourism sector into unknown territory.

The impact over the past week, post-New Year on travel to the island has methodically ground down airlift to the point of a staggering level of increased cancellations of flights and hotel bookings. Airlines are groaning under the financial strain of mounting losses.

With the Phuket provincial restrictions now in place until the end of January or to a date as necessary, hotels are facing an absolute cash flow crisis. What is apparent is the national message recommending Thais to stay home equates to a virtual shutdown of domestic tourism.

While the latest string of restrictions now put individual provinces in control of travel limitation and protocols, there is a dire need for the national government to address economic measures to assist employers and employees of hotels.

At this point, a closure order for hotels and tourism businesses would be a welcome move by many given that the national social security system could trigger a 50% subsidy for staff pay similar to what transpired mid-last year. It’s a choice now of either interceding or potentially triggering wide-spread permanent closures and job losses.

Perhaps the most important issue hotels are facing is when can they expect the first domestic business to return and secondly international travelers. It’s unlikely the national government will look to reverse its position on asking Thais to stay at home anytime soon and the only real answer to resolving this is broad penetration of the vaccine, which is unlikely until the mid to later part of the year.

On the international front, as many countries now are actively vaccinating, an urgent protocol needs to be put in place that allows travelers who have been vaccinated and tested to enter Thailand. In fact, this may come sooner than the domestic penetration of the vaccine.

For hotels and tourism establishments, the first half of 2021 looks to be our darkest hour and the industry must continue to actively dialogue within the public and private sector for immediate measures and better information to be distributed on implementation and changes to restrictions.

Other News

Read more

New Phuket Hotel Market Update 2024 Report From C9 Hotelworks

Category: Hotels|Tourism, Posted:17 Apr 2024 | 19:06 pm Phuket’s tourism industry is undergoing an ongoing rebound, with last year’s airport passenger arrivals edging towards pre-pandemic figures according to C9 Hotelwork’s Phuket Hotel Market Update 2024. While hitting 7 million, it was still short of the 9 million mark set in 2019. This year the trend is continuing with 1.62 million arrivals to date […]
Read more

Delving Into the Real Estate Rental Landscape of Phuket

Category: Opinion|Real estate, Posted:16 Apr 2024 | 09:39 am Given the backdrop of a booming Phuket real estate sector, one area that is often overlooked is the rental market. Despite a vibrant vacation short-stay segment, there remains a strong demand for extended and long-stay rentals across the island. Rental demand coming out of the COVID19 pandemic experienced sustained uplift and has continued to perform […]
Read more

Inside the Numbers. The Potential of a Phuket Property Bubble

Category: Real estate, Posted:13 Apr 2024 | 13:12 pm One of the most common questions I am asked these days is about a potential Phuket real estate bubble. While it’s a popular buzz term, so many who ask the question don’t understand what a bubble is. The most notable real estate bubble in recent history was the subprime housing crisis in the United States […]
SiaJai logo

Thailand's Leading Homecare Marketplace