BANGKOK: While the Thai hotel industry is experiencing a rebound in demand in line with the country’s peak tourist season, concerns are growing over increasing competition from foreign businesses.

Thienprasit Chaiyapatranun, president of the Thai Hotel Association (THA), noted that an ongoing confidence-index survey revealed regional disparities in concerns, with hotels in central and northern Thailand feeling the strain most acutely.

According to a survey conducted by the THA and the Bank of Thailand, around 50% of hoteliers expressed worry about the potential negative impact of foreign investment on the industry. Chinese businesses, in particular, are seen as a significant threat, especially for budget hotels.

Meanwhile, higher-end establishments are concerned about the broader implications for Thailand’s tourism image.

The survey also revealed that hoteliers are anticipating a similar number of Thai tourists in the fourth quarter compared with previous quarters, with a slight uptick expected in the under three-star segment.

Overall, hotel occupancy rates were projected to reach 68% in November 2024, a significant improvement from the previous month. The southern region continued to lead with the highest average occupancy rate at 66.9%, followed by the central region at 63.2%.

Foreign tourists, primarily from Asia, the Middle East, China, and Western Europe, are driving the recovery, with a majority of them opting for four-star and above accommodations.

Labour shortages remained a persistent challenge, particularly for higher-end hotels. While the issue is primarily impacting service quality, it has not yet hindered the industry’s ability to accommodate guests, the survey revealed.

The Thai government had been implementing several measures to boost the tourism sector, including promoting Thailand as a hub for entertainment and events, attracting world-class events, and improving infrastructure.

The Northern Half Project is also expected to stimulate tourism in the northern region, particularly in eco-tourism destinations.

The THA president called on the government to provide further support, such as measures to stimulate domestic tourism, reduce operating costs, address labour shortages, and stabilise the baht.

 - ANN