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HOTEL OPERATORS in Pattaya are expected to continue to suffer, judging from low advance bookings from overseas markets for the coming high season.
Meanwhile, the government is being urged to crack down on illegal operators in order to rebuild the city's image and lure tourists back.
Sanpech Supabowornsthian, president of the Thai Hotels Association (THA) Eastern Chapter, said tourist numbers in Pattaya would probably drop by 15-20 per cent during the coming high season. If that happens, tourism revenue will fall by 20-30 per cent from last year's peak season. The average occupancy rate would be around 70 per cent, lower than a year earlier when it was 80-90 per cent.
He said tourists from key markets such as Russia, China, Japan, India and Europe would shift to other destinations such as Phuket, Koh Samui and other beach resorts.
During the first eight months of this year, 6 million tourists entered Pattaya, down by 30-40 per cent from the same period last year. The top five sources were Russia, China, the Middle East, Germany and India. Several hotel operators have predicted that the city could lose about 2 million tourists this year.
During the first nine months, 2.8 million Thais travelled to Pattaya, compared with 3 million during the same period last year.
"This year's peak season will definitely not be better than the last three months of 2013. Key factors for the failure are the extension of martial law and an oversupply of rooms," he said.
Pattaya has 2,174 accommodation providers, representing about 139,000 rooms. But only a little over 12 per cent, or 274 operators with 40,000 rooms, have registered as hotels.
Sanpech said the huge number of available rooms in Pattaya could serve up to 40 million tourists per year, but in fact there are only 10 million arrivals each year. This has been causing a price war for years.
"One of the biggest problems for Pattaya is the room oversupply. International hotel chains are offering rates of just Bt3,000 per night, while local operators offer Bt900-Bt1,800 per night," he said.
The THA has urged the government and local administrative bodies to go after illegal operators in order to stop the price war that is hurting overall business. If the authorities followed this suggestion, the association says, operators would stay in business and Pattaya could regain quality tourists.
Sanpech, who is also assistant managing director of Unchaleewiwat Group - one of the biggest hoteliers in Pattaya with a total of 3,400 rooms - said the group was beginning a rebranding programme. The group operates eight properties under different brands, ranging from three to five stars. It plans to open its ninth property next year.
He said each of properties was taking care of its own marketing and mainly focused on the domestic market. However, once the group's rebranding is completed next year, some new strategies will be in action.
HOTEL OPERATORS in Pattaya are expected to continue to suffer, judging from low advance bookings from overseas markets for the coming high season.
Meanwhile, the government is being urged to crack down on illegal operators in order to rebuild the city's image and lure tourists back.
Sanpech Supabowornsthian, president of the Thai Hotels Association (THA) Eastern Chapter, said tourist numbers in Pattaya would probably drop by 15-20 per cent during the coming high season. If that happens, tourism revenue will fall by 20-30 per cent from last year's peak season. The average occupancy rate would be around 70 per cent, lower than a year earlier when it was 80-90 per cent.
He said tourists from key markets such as Russia, China, Japan, India and Europe would shift to other destinations such as Phuket, Koh Samui and other beach resorts.
During the first eight months of this year, 6 million tourists entered Pattaya, down by 30-40 per cent from the same period last year. The top five sources were Russia, China, the Middle East, Germany and India. Several hotel operators have predicted that the city could lose about 2 million tourists this year.
During the first nine months, 2.8 million Thais travelled to Pattaya, compared with 3 million during the same period last year.
"This year's peak season will definitely not be better than the last three months of 2013. Key factors for the failure are the extension of martial law and an oversupply of rooms," he said.
Pattaya has 2,174 accommodation providers, representing about 139,000 rooms. But only a little over 12 per cent, or 274 operators with 40,000 rooms, have registered as hotels.
Sanpech said the huge number of available rooms in Pattaya could serve up to 40 million tourists per year, but in fact there are only 10 million arrivals each year. This has been causing a price war for years.
"One of the biggest problems for Pattaya is the room oversupply. International hotel chains are offering rates of just Bt3,000 per night, while local operators offer Bt900-Bt1,800 per night," he said.
The THA has urged the government and local administrative bodies to go after illegal operators in order to stop the price war that is hurting overall business. If the authorities followed this suggestion, the association says, operators would stay in business and Pattaya could regain quality tourists.
Sanpech, who is also assistant managing director of Unchaleewiwat Group - one of the biggest hoteliers in Pattaya with a total of 3,400 rooms - said the group was beginning a rebranding programme. The group operates eight properties under different brands, ranging from three to five stars. It plans to open its ninth property next year.
He said each of properties was taking care of its own marketing and mainly focused on the domestic market. However, once the group's rebranding is completed next year, some new strategies will be in action.
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