Thai hotels are facing an uphill battle this year as the government pulls the plug on property tax reductions and energy prices soar, sending operating costs skyrocketing by 10%.
Marisa Sukosol Nunbhakdi, the President of the Thai Hotels Association (THA), reveals the dire consequences for hotel owners who enjoyed a 90% tax discount in 2020-21, only to see it evaporate to 15% last year.
“Despite a surge in inbound tourism, many hotels are struggling to boost profits due to the relentless pressure of rising costs.”
The end of property tax reductions and surging energy bills, driven by increased consumption from hosting more guests, have hit hotels hard, leaving them with slimmer profit margins.
Only 50% of hotels managed to achieve a higher average daily rate than pre-pandemic times, mainly concentrated in the four-star segment and above,…
