Hotels in Thailand`s southern business district of Hat Yai in Songkhla Province have lost at least Bt1 billion…
Hotels in Thailand`s southern business district of Hat Yai in Songkhla Province have lost at least Bt1 billion over the past year, and many have been forced to close, as tourists steer clear of the volatile southern border region.
According to Mr. Somchat Phimthamaphoonporn, President of the Hat Yai Hotel Association, the Hat Yai tourism industry has been dealt a heavy blow by the southern insurgency, with hotels suffering particularly badly.
Pointing to average occupancy rates of just 40-50 percent, he said that the local tourism industry had lost no less than Bt1 billion, and that many small and suburban hotels had announced that they were shutting up shops.
While larger hotels would be able to survive until the end of the year, a continuation of the insurgency might force them to consider closure as the only option, he warned.
The Hat Yai authorities have indicated that they will offer tax breaks to hoteliers in a bid to keep them in operation, while the Bank of Thailand (BOT) has been asked to extend soft loans to hotel operators.
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