As a result of the Covid-19 resurgence, The president of the Thai Hotels Association says, many properties are considering shutting for the low season. Marisa Sukosol Nunbhakdi says, smaller hotels that don't necessarily have the resources as large chain hotels are struggling with cash flow and crippled by low tourist demand.
Many are considering shut their doors between April and October, or until demand resumes.
In a Bangkok Post report, the THA chief says that occupancy rates are expected to plummet to single digits in April, as happened in January during the second wave of the virus. She adds that the level of business in the last two weeks of the month are will determine whether or not many will close. The hotel industry now employs just 400,000 workings in the hotel industry, a huge drop compared to just a few years ago.
The THA surveyed 128 hotels last month, showing that most had still not experienced signs of financial recovery, particularly in the south of the country. At least 50% of the companies haven't even achieved 10% of their pre-Covid revenue. Up to 40% of hotels have had to lay off workers, while others continue to implement policies as leave without pay (77%), a mandatory day off (76%), pay cuts (71%), changes to work schedules (69%), and reduced hours (56%) as well as invoking section 75 of the Labour Protection Act to pay 75 per cent of a worker's salary (20 per cent).
A tiny minority of 5-star hotels in the southern provinces of Phang Nga and Surat Thani (6%) experienced improvements in occupancy and were able to hire additional staff as a result. However, the vast majority of properties' liquidity dropped by 20% in March relative to February, and many can only afford to work for another three months. The THA leader is calling on the government to provide a monthly co-payment scheme or a debt holiday, as well as more stimulus packages to boost tourist demand.
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