Hotel bookings slump in Phuket and South as Mideast war curbs travel

Hotel bookings across Thailand fell from May, with Phuket among the southern destinations hit by weaker demand linked to the Middle East conflict and higher airfares, the Thai Hotels Association said on April 30. The downturn has cut forward bookings in multiple regions, with luxury hotels reporting a 40% occupancy rate in May, down 3% year-on-year, including in Phuket, Samui and Krabi.

European demand drops sharply in southern resorts

Across all hotel segments in the South, Phuket recorded a 17.5% decline in visitors from European markets, while Krabi fell 20-30%, particularly among travellers from Germany and the UK.

Phangnga, which relies heavily on European business, was reported as the hardest hit. The province faced a 50% drop in bookings, and its May occupancy rate fell to 20-30%, with second-quarter conditions deteriorating faster than in neighbouring provinces.

Thai Hotels Association president Thienprasit Chaiyapatranun said expensive airfares, driven by higher jet fuel costs, were constraining European travel and worsening the second-quarter outlook.

Chinese and Indian markets offer only partial relief

Phuket and Krabi were able to pick up some replacement demand from Asia, led by the Chinese market. Krabi posted growth of more than 100% from China, while Phuket recorded 9% growth.

Indian arrivals also increased, with Phuket registering 15.3% growth and Krabi becoming most reliant on India as its top inbound market. The Malaysian market also recovered, rising 5.3% in Phuket and 9% in Krabi.

Even with stronger short-haul demand, the association said hotels could not fully replace lost revenue from long-haul guests. Operators were therefore not expected to raise average daily room rates despite the shift in market mix.

Outside the South, the North posted a May occupancy rate of 41.2%, down from 61.5% a year earlier, with low-season forward bookings still falling. The association said northern hotels had underperformed other regions since Songkran because of high PM2.5 pollution, while some July and August series bookings from European tour agents were continuing to be cancelled.

Source: https://www.bangkokpost.com/business/general/3246735/hotel-bookings-plunge-as-mideast-war-hits-travel