Hi! Managers: A plea for the Thai hotel trade

Every year, the tourism and hospitality industry accounts for 10 per cent of Thailand's gross domestic product (GDP). According to the Tourism Authority of Thailand, the average visitor stays here for about nine days and spends Bt4,120 per day.

But there seems always to be a new challenge for Thai tourism. The industry is vulnerable to many situations, such as those we have seen in recent years, from the Sars pandemic and the 9/11 terrorist attacks to the catastrophic tsunami and the present global economic crisis and domestic political unrest. It seems that just when the industry is progressing, something unfortunate happens. We had the protesters close down Suvarnabhumi Airport in late November and violent protests during the Songkran holidays. Recent concerns over a new flu pandemic have also helped to put our industry in a difficult position.

Nevertheless, we foresee a recovery taking place by the fourth quarter of this year, when travellers will start to look around for luxurious-yet-affordable vacations.

At present, the industry is trying to respond in an environment of extreme difficulty. The Thai Hotels Association estimates that hotel occupancy rates have fallen by more than 30 per cent due to the financial crisis and political unrest. Small operators are finding it hard to manage cash. Most hotel operators are cutting costs, forcing staff to take leave without pay and, in some cases, laying off staff.

At the same time, those smart and well-groomed operators that are not under severe financial stress are taking this time to prepare for the future. They are renovating hotels and, in some cases, building new hotels. They are working to build up their brands through aggressive advertising and marketing. When tourism inevitably comes back - which we strongly believe will be as soon as late this year - these hotel operators hope to be able to offer returning visitors the kind of experience that can only be found in Thailand.

While the industry has been quick to do everything it can to help tourism to survive, government direct support remains, for the most part, unavailable. Industry representatives have met government agencies on many occasions but, for now, all that has been accomplished is a programme that makes low-interest loans available to small hotel operators. Nothing is available for the larger hotel operators who ultimately make a bigger and more meaningful contribution to GDP. There has been much discussion about measures ranging from tax incentives to promote hotel renovation projects to funding a national advertising and marketing campaign to support for hotels that retain staff despite their financial difficulties. But to date no meaningful new policy or programme has been announced or approved to support larger operators.

When Thai tourism was devastated by The tsunami four-and-a-half years ago, there was immediate and significant support for Thai tourism. Experienced hoteliers all know that today's crisis is probably much more severe than the tsunami. Yet, the industry has received little support.

I hope that my small voice will be noticed by some government agencies that can launch policies in time to support hospitality operators who remain committed to creating spending, maintaining jobs and promoting Thailand, our beloved country.

PRATANA MONGKOLKUL is group chief financial officer at Minor International. Follow her articles in Hi! Manager on the fourth Wednesday of each month.