By Reinhard Hohler, Chiang Mai
According to the latest business news on www.bangkokpost.com, hoteliers in Chiang Mai have urged authorities to help them survive as their occupancy rates continue to drop year-on-year to below 40% in this low season. Their own efforts, as evidenced by big discounts of more than 50%, do not help and hotel occupancy rates continue to decline, said Kanok Suwansutr, an adviser of the Thai Hotels Association’s Northern Chapter.”The hotel situation in Chiang Mai is worsening. The average occupancy rate is estimated to be lower than 40% in this low season, down 10% from 46-50% in the same period last year,” he said.
Earlier, hoteliers expected the situation to recover this year after local political problems eased. But the European financial crisis led to a decrease of international tourist arrivals to Thailand. Moreover, local people are putting on hold their travel plans in the face of the July 3 general election. The tourism slump in Chiang Mai began in 2006 and Chiang Mai hotels are still in the doldrums.
Currently, Chiang Mai hoteliers are cutting their average room rates by 40-50% or more than half to attract tourists during the low season. However, the feedback is not good as they do not have enough money to effectively promote their hotels.
Dusit International reported an occupancy rate of the Dusit D2 Chiang Mai at 40% in the first quarter of this year, while the Dusit Thani Laguna Phuket posted 60%. Dusit plans to increase room rates in Phuket by about 10% this year, but will maintain the rates in Chiang Mai.
“We have nothing new in Chiang Mai. We sell old products and activities. This drives many Thai tourists to neighbouring countries instead since the cost is not much different,” said Chanin Donavanik, CEO of Dusit.
Tourism operators in the northern province view that marketing and promotion campaigns by the Tourism Authority of Thailand (TAT) for northern provinces are not effective. While private operators are trying hard to jointly promote Chiang Mai and other provinces among tourists in Bangkok and abroad, the impact is minimal due to limited budgets.
They hope the government will help them survive the hard time and organise marketing activities in both local and international markets such as Malaysia, Singapore, China and India.
Thawatchai Arunyik, TAT’s deputy governor for domestic marketing, said it would hold talks with the THA to help solve this issue. He admitted that Chiang Mai is a laggard when compared to other regions. In the first quarter, it grew only 5%. “We realise the Chiang Mai problem as the hotel oversupply has pressured room rates,” he said.
