Almost half of Thai hotels fear closing as cash runs out amid pandemic
A recent survey by Thailand’s hotel industry showed that 47 per cent of the country’s hotels are likely to close in less than three months as they are running out of cash to cover staff costs and maintenance, with very few guests due to the Covid-19 pandemic.
The survey is focused on the Bank of Thailand’s April 2021 trust index of hotel business operators, which surveyed 188 hotels nationwide in the period between April 12 and 26.
Thirty of the hotels are alternative state quarantine facilities, according to the survey.
Due to the new Covid-19 surge, 56 establishments recorded a 20 per cent- drop in liquidity compared to the previous month, while 47 per cent said their worsening liquidity situation could keep their hotels open for less than three months.
Average occupancy could drop to nine per cent in May
By the time of the survey, 13 per cent of the hotels had temporarily closed their doors but said they wanted to reopen in the fourth quarter of the year when the situation would possibly have improved, the report noted.
The occupancy rate of the 158 hotels that are not serving as state quarantine was at 18 per cent on average at the time of the survey, the study said. Estimations are that the average occupancy rate in May could drop to as low as nine per cent if the outbreak persists.
At the same time, the hotels still in operation employ 59 per cent of their staff, but have adopted measures such as salary cuts, letting employees use their sick days, granting leave without pay and alternating working days to lower expenses.
A recent survey by Thailand’s hotel industry showed that 47 per cent of the country’s hotels are likely to close in less than three months as they are running out of cash to cover staff costs and maintenance, with very few guests due to the Covid-19 pandemic. The survey is focused on the Bank of Thailand’s April 2021 trust index of hotel business operators, which surveyed 188 hotels nationwide in the period between April 12 and 26. Thirty of the hotels are alternative state quarantine facilities, according to the survey. Due to the new Covid-19 surge, 56 establishments recorded a...
A recent survey by Thailand’s hotel industry showed that 47 per cent of the country’s hotels are likely to close in less than three months as they are running out of cash to cover staff costs and maintenance, with very few guests due to the Covid-19 pandemic.
The survey is focused on the Bank of Thailand’s April 2021 trust index of hotel business operators, which surveyed 188 hotels nationwide in the period between April 12 and 26.
Thirty of the hotels are alternative state quarantine facilities, according to the survey.
Due to the new Covid-19 surge, 56 establishments recorded a 20 per cent- drop in liquidity compared to the previous month, while 47 per cent said their worsening liquidity situation could keep their hotels open for less than three months.
Average occupancy could drop to nine per cent in May
By the time of the survey, 13 per cent of the hotels had temporarily closed their doors but said they wanted to reopen in the fourth quarter of the year when the situation would possibly have improved, the report noted.
The occupancy rate of the 158 hotels that are not serving as state quarantine was at 18 per cent on average at the time of the survey, the study said. Estimations are that the average occupancy rate in May could drop to as low as nine per cent if the outbreak persists.
At the same time, the hotels still in operation employ 59 per cent of their staff, but have adopted measures such as salary cuts, letting employees use their sick days, granting leave without pay and alternating working days to lower expenses.
