Hotels await boost from state agency meetings

Hotels await boost from state agency meetings

Hoteliers say they need more demand from state agencies to support domestic meetings in provincial areas as the economic impact from the coronavirus crisis cuts deeper.

Marisa Sukosol Nunbhakdi, president of the Thai Hotels Association, said most state agencies typically arrange meetings in Bangkok, but demand remains soft.

While local travellers are more concerned about saving money than travelling, government spending on domestic meetings and seminars is viewed as a key source of interprovincial trips.

According to the latest report from the National Economic and Social Development Council, the country's GDP in the second quarter plunged 12.2% year-on-year, the biggest contraction since the Asian financial crisis of 1997-98.

The economy this year must rely heavily on consumption and investment from the government because of stagnation in tourism, exports and agriculture caused by the pandemic and drought.

The number of meetings from state agencies remains weak in Phuket and Krabi, said Suksit Suvunditkul, chief executive of Deevana Hotels and Resorts.

Moreover, most operators miss out on the benefits from the "We Travel Together" campaign because Phuket is considered a long-distance destination, he said.

Only operators offering luxury properties at special prices will receive a flow of local tourists, Mr Suksit said.

"Hoteliers would like the new economic situation administration centre to come up with measures to mitigate their liquidity problems, including accessible soft loans," he said.

Operators are responsible for monthly fixed costs such as labour and utilities, plus maintenance costs after a temporary closure that lasted several months.

The Thailand Convention and Exhibition Bureau (TCEB) introduced a new domestic Mice (meetings, incentives, conferences and exhibitions) scheme to subsidise tour agents, organisers or hotels for each event organised by companies or state agencies.

The TCEB will subsidise 15,000 baht per group for a one-day activity lasting longer than six hours and 30,000 baht for at least two days and one night.

Such events require minimum participation of 30 people and can be held within the home province to avoid risking a second wave of coronavirus infections.

Two Thais tested positive for the virus in the past week, but tourism sentiment should be unscathed because both were returnees from a foreign country and are not regarded as local cases, said Thanapol Cheewarattanaporn, president of the Association of Domestic Travel.

He said the quick response from the Public Health Ministry eased concerns among locals about a second wave.

"People should not panic and should continue their daily activities, including travel as usual," Mr Thanapol said.

"The most important thing is we have to be alerted and strictly comply with health measures such as wearing masks as long as we are without a vaccine."

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