47 per cent of hotels could stay open for less than three months

MONDAY, MAY 03, 2021

A survey of the hotel industry found that 47 per cent of hotels have liquidity to keep their business afloat for less than three months.

The confidence index of hotel business operators in April 2021, published by the Bank of Thailand, surveyed 188 hotels nationwide from April 12-26.

Of the hotels surveyed, 30 are alternative state quarantine (ASQ) facilities.

Fifty-six establishments reported more than a 20 per cent decline in liquidity compared to the previous month, due to the latest Covid-19 wave, while 47 per cent said their liquidity situation could keep their hotels open for less than three months.

The survey also found that 46 per cent of hotels were opening as usual, while 13 per cent had temporarily closed their doors. Most of the closed hotels are in the southern region that focused on foreign clientele.

“Most of the closed hotels planned to reopen again in the fourth quarter of the year, when the situation improves,” said the report.

The occupancy rate of 158 hotels who are not serving as ASQ is at 18 per cent on average. Hotels in the northern region have the lowest occupancy rate of 4.1 per cent, followed by the Northeast at 10.9 per cent, Central at 18.7 per cent and South at 23.2 per cent.

The Bank of Thailand estimates that the average occupancy rate in May could drop to as low as 9 per cent if the outbreak still persists.

The survey also revealed that hotel businesses still in operation employ 59 per cent of staff compared to before the latest wave was reported. The measures hotels use to manage staff during Covid-19 include salary cut, letting employees use their sick days, granting leave without pay and alternating working days.