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BANGKOK, Oct.11 (Bloomberg): A slew of luxury hotels opening in Thailand amid the Covid-19 pandemic are pinning their hopes on a government plan to attract high-spending tourists, gambling on that those seeking a five-star quarantine will help cushion the devastation caused in the travel industry.
About half a dozen luxury hotels that opened in Bangkok during the pandemic, or will open soon, by Four Seasons, Kempinski and Capella are likely to benefit from a new visa aimed at attracting long-stay visitors, high spenders and medical travelers . to return the economy to the path of growth.
While Thailand has weathered the virus outbreak better than most other Southeast Asian nations, it faces one of its worst recessions on record due to the loss of tourists, which in 2019 injected $ 62 billion into the economy.
Targeting luxury travelers who stay longer and spend more could contain some of those losses, said Deepak Ohri, CEO of Lebua Hotels & Resorts. “The pandemic has given Thailand the opportunity to reset how the tourism industry will look after Covid-19,” he said in an interview.
Starting this month, tourists with the new visa will be able to enter Thailand for the first time since the borders were closed in late March. They will be required to stay for at least 90 days, including a mandatory 14-day quarantine, which can be served in a luxury hotel. After that, they will be able to travel anywhere they want.
“These groups of travelers have the greatest potential to increase money spent on accommodation and meals, which can help to boost the economy, especially during these difficult times of pandemic,” said Yuthasak Supasorn, director of the Tourism Authority of Thailand. 800 to 1,000 Chinese tourists who are ready to travel here by private jets in the first phase of reopening. “
Still, the government, which used to worry about the effects of excessive tourism, expects around 1,200 visitors a month to use the new visa, generating around 1.2 billion baht ($ 38 million) in revenue, a fraction of the amount. worn by mass market vacationers. Most Thais do not agree with the plan to open the borders, a poll showed on Wednesday.
“It’s a good initial initiative to focus on quality rather than quantity, but it won’t be enough to make up for the loss of revenue,” said Somprawin Manprasert, chief economist at Bank of Ayudhya Pcl. High-income Thais to promote spending would help pump more money into the economy. “
The Capella opened on October 1, making it the latest of several luxury hotels to enter the market since the pandemic began. Before Covid-19, the hotel expected up to 90% of revenue to come from foreign travelers. Next door, The Four Seasons will open its doors at the end of the year. This follows other high-end hotels like the Rosewood and the Siam Kempinski Sindhorn. – Bloomberg
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