Hotels close for the off-season
The new wave of Covid-19 has lowered incomes
People rummage for offers at a travel fair in Bangkok. A THA poll in March found that revenues for most properties had not yet recovered. (Photo by Somchai Poomlard)
The Covid-19 resurgence is forcing hoteliers to consider temporarily closing given low incomes and low demand from tourists.
Marisa Sukosol Nunbhakdi, the president of the Thai Hotels Association (THA), said non-chain hotels without sufficient cash flow will cease operations from April through October or until tourism demand resumes instead of waiting for another slump.
Ms Marisa said April occupancy is expected to drop to single digits, similar to the second wave in January. The last two weeks of April will prove crucial in hotels’ decision to close for the off-season, she said.
Only 400,000 hotel workers left in the industry, a remarkably low level from a few years ago, Ms. Marisa said.
The extent of the impact, including the unemployment rate, will depend on how quickly the government can contain the virus.
A THA confidence poll of 128 hotels in March found that revenues for most properties, particularly in the south, had not yet recovered. At least 50% of hotel chains couldn’t even get 10% of the revenue they had before the pandemic started.
Hotels continued to put in place a human resources policy that included an option for paid vacation (77%), mandatory annual vacation (76%), a pay cut (71%), an alternative work schedule (69%) and a reduction in working hours (56%). and / or use of Section 75 of the Occupational Safety and Health Act to pay 75% of the employee’s salary (20%).
Up to 40% of hotels have now decided to lay off employees. Only 6%, mostly five-star hotels in Phangnga and Surat Thani, hired more staff thanks to improved occupancy.
The survey also found that hotels’ liquidity was 20% lower in March from February, and that most had enough cash flow to not work for more than three months.
She said financial aid is a top priority as the new wave has disrupted the pace of recovery. The state should assign a monthly wage payment system or debt vacation, and enact stimulus plans to boost the tourist mood.
In addition, vaccinations are key to revitalizing tourism, which can help the economy and increase tourist confidence.
“The government needs to speed up vaccinations for tourism workers, especially hotel workers, and those who work in hospitals who care for uncritical or asymptomatic patients, alternative state and state quarantines.”
