Resorts in Phuket recorded occupancy rates of only 20 per cent in April and May, compared with 70 per cent in the same period in 2004. Other Andaman Sea tourist provinces like Phang Nga and Krabi have also been hit hard. Worse yet, Japanese, one of the biggest tourist groups, have largely been no-shows.

In a dire sign of just how bad tourism has become in Thailand, the industry only generated Bt6 billion in revenues nationwide in April, compared to last year’s monthly average of Bt50 billion.

Hotels in the South should have recovered from the tsunami, which was spawned by a 9.1-magnitude earthquake off the coast of Sumatra on December 26, 2004. But a second earthquake in March and a bomb attack at the Hat Yai International Airport put further dampers on tourism, said Opas Netraumpai, honorary advisor to the Thai Hotels Association.

Hat Yai hotel occupancy fell to 30 per cent in April and May, from around 50 per cent in the same period last year. This year, all of the guests are domestic travellers.

Some Phuket hotel operators expect the Andaman hotel industry to continue struggling in the second half of this year. Right now, hoteliers are living in despair, as the low season settles in. The high season rolls in around October, but they are not sure about prospects when it does.

Hoteliers said apart from low occupancy rates, the South’s poor marketing plans combined with higher fuel prices and safety issues have forced many hotels to lay off staff.

“There are so many problems that hurt the hotel industry,” Opas said. He predicted the South would be hard-pressed to contribute 40 per cent of the country’s tourism revenues as it usually does.

But while tourists in general are steering clear of the three provinces and Hat Yai, hotels in other areas are enjoying higher occupancy rates.

For example, Koh Samui’s hotel occupancy has increased to 80 per cent from 70 per cent, said Prait Shinamourpong, vice president of THA.

To help the industry, the THA will ask airlines to not stray from their normal schedules and urge its members to hold meetings in the southern provinces to assist their industry counterparts.

Separately, the Tourism Authority of Thailand (TAT) is holding the Amazing Thailand Grand Sale until Sunday at Bangkok’s Queen Sirikit National Convention Centre. The promotion is a part of its efforts to help the industry in the South recover, as well as to boost domestic travel during the low season.
The event offers tourism products and services at discounts of 30 and 50 per cent from ordinary prices. A variety of goods and services are also on sale at special prices, including jewellery, healthcare and beauty products.

The Grand Sale will also be held in the country’s major cities: Chiang Mai, Pattaya, Phuket and Hat Yai through the end of July.

This month, the TAT and Thai investors will take part in the Beijing International Tourism Expo 2005 between June 22 and 24. A group will also attend the Xian and Taiyuan Road Show, to be held in Xian on June 27 and in Taiyuan on June 29.

These tourism events aim to boost the Chinese tourism market and celebrate 30 years of Sino-Thai relations.

Suchat Sritama
The Nation