Survey shows that most hotels can only cover operating costs for less than 3 months
A survey by the Bank of Thailand shows that most hotels can only cover their operating costs for less than 3 months. 220 properties were surveyed between June 14th and 27th. Of these, 17 are alternative state quarantine facilities, while 3 properties serve as “hospitals”. 68% of those questioned state that they only have enough liquidity to cover their operating costs for less than 3 months. And according to a report by the Bangkok Post, 26% only have enough liquidity for less than a month.
Despite a slight increase in occupancy, there are simply not enough stores and 19.5% hotels have temporarily closed in the last month. Most of them are in the south of the country, where many facilities have been closed for over a year and 75% of them hope to reopen in the final quarter of the year.
Hotel occupancy averaged around 10% in June compared to 6% in May. This rate was slightly higher in the northeast at 13% and lowest in the north at 6.2%. In the south, the occupancy rate was around 6.3% on average, and 13.2% in the central provinces. A nationwide occupancy rate of around 12% is expected for July.
Meanwhile, Thailand’s most vaccinated workers are located in the south of the country at 61.7%, largely due to 83% of Phuket hotel workers being vaccinated for the island’s reopening on July 1st. The situation is completely different in central Thailand, where just over 21% of workers are vaccinated. This figure is even lower in the north-east, at just over 16%, and even lower in the north, where fewer than 16% of workers are vaccinated.
To meet the recent financial challenge, hotel operators are seeking help in the form of debt moratoriums, soft loans, and additional liquidity to pay salaries. They also urge the government to source and distribute more vaccines.
SOURCE: Bangkok Post
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