Thai Hoteliers Warn Against Illicit Foreign Business Practices
Concerns Over Tourism Reputational Impact in Thailand
The Thai Hotels Association (THA) has expressed concerns over the increasing use of Thai nominees by foreign businesses in the hospitality sector.
THA's president, Thienprasit Chaiyapatranun, highlighted the potential negative effects on Thailand's tourism reputation, particularly due to low pricing and quality standards set by these illegal entities.
According to the THA's October sentiment index, around half of the hotels, including those owned by Chinese entrepreneurs, are worried about these illicit practices.
Despite these concerns, 53% of four-star and higher hotels reported they do not view such businesses as direct competitors due to differing market targets.
However, price wars remain a looming threat.
The association urges the government to intensify efforts to combat illegal foreign businesses to protect the tourism industry.
Three-star hotels and below are more directly affected by pricing competition and reputational concerns.
With the high season having started in October, the average national hotel occupancy has increased to 57.6%, with projections of 68% occupancy for November.
Four-star and above hotels reported 60.2% occupancy, though they face labor shortages.
Hoteliers are seeking government assistance in training programs and workers, as well as ensuring the stability of the Thai baht and faster approval of soft loans for businesses impacted by recent flooding.
THA's president, Thienprasit Chaiyapatranun, highlighted the potential negative effects on Thailand's tourism reputation, particularly due to low pricing and quality standards set by these illegal entities.
According to the THA's October sentiment index, around half of the hotels, including those owned by Chinese entrepreneurs, are worried about these illicit practices.
Despite these concerns, 53% of four-star and higher hotels reported they do not view such businesses as direct competitors due to differing market targets.
However, price wars remain a looming threat.
The association urges the government to intensify efforts to combat illegal foreign businesses to protect the tourism industry.
Three-star hotels and below are more directly affected by pricing competition and reputational concerns.
With the high season having started in October, the average national hotel occupancy has increased to 57.6%, with projections of 68% occupancy for November.
Four-star and above hotels reported 60.2% occupancy, though they face labor shortages.
Hoteliers are seeking government assistance in training programs and workers, as well as ensuring the stability of the Thai baht and faster approval of soft loans for businesses impacted by recent flooding.
