Strong baht hurting Pattaya hotels

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Gaybutton
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Strong baht hurting Pattaya hotels

Post by Gaybutton » Wed Nov 27, 2019 10:48 am

Slowdown hits Pattaya hoteliers

by Dusida Worrachaddejchai

27 Nov 2019

Hotel business in Pattaya has begun to feel the pinch of the strong baht and the economic slowdown, with reports of declining occupancy rates.

Under normal circumstances, most hotels in the popular beach city would be fully booked during the high season, but this year the overall occupancy rate is 80%, said Pattaya deputy governor Manoj Nongyai.

The surging local currency has made foreign travellers more price-conscious, he said.

The city is a first-night stay for many foreigners visiting Thailand, according to a study. They then choose to stay the other nights on Koh Samet in Rayong or in Bangkok before flying home.

The slowdown in hotel business also stems from changes in behaviour, especially by Chinese tourists, who tend to travel independently in small groups instead of buying tour packages.

These travellers prefer walk-in booking when they arrive at a destination, or they use a sharing-economy platform to enjoy lower costs for accommodation, Mr Manoj said.

Pattaya continues to attract some 450,000 visitors daily. The top three tourist groups this year are Chinese, Indians and Russians.

The Indian market has shown strong potential, with visitors still travelling in groups of 20-30 people, particularly for incentives, bachelor parties and weddings. Bollywood productions use Pattaya as a shooting location, inspiring Indians to visit Thailand.

Average spending for Indian tourists is 10,000 baht per person per day, compared with 5,000 baht for Chinese visitors.

Full story: https://www.bangkokpost.com/business/1803074

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Re: Strong baht hurting Pattaya hotels

Post by Gaybutton » Wed Nov 27, 2019 11:34 am

Of course I have no way of knowing, but these numbers aren't making sense to me. 450,000 tourists in Pattaya every day? That's a lot of tourists. Where are they? I see a lot of tourists, but 450,000 of them?

And I also question the amounts of money the articles say they're spending. Indian tourists are spending 10,000 baht per day? What are they spending it on?

Maybe the numbers are correct. As I said, I have no way of knowing, but I would sure like to know where this number information is coming from and how they come up with these figures.

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Re: Strong baht hurting Pattaya hotels

Post by Jun » Wed Nov 27, 2019 2:58 pm

Gaybutton wrote:
Wed Nov 27, 2019 10:48 am
Average spending for Indian tourists is 10,000 baht per person per day, compared with 5,000 baht for Chinese visitors.
India GDP per capita = $2036, alleged daily spend in Pattaya 10,000 baht.
China GDP per capita = $9608, alleged daily spend in Pattaya 5,000 baht.
IMF GDP data.

More importantly, perhaps any readers planning to visit Pattaya might want to keep an eye out for better hotel deals than normal.

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Re: Strong baht hurting Pattaya hotels

Post by Gaybutton » Wed Nov 27, 2019 4:04 pm

Jun wrote:
Wed Nov 27, 2019 2:58 pm
IMF GDP data.
Ok, how do they arrive at those figures? I don't know much about economics, but I don't see how GDP data gives even a clue as to how much people spend during a Thailand holiday. Even when the exchange rates were good, I don't recall spending anywhere near that much per day.

Again, if they're really spending that much per day, what are they spending it on?

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Re: Strong baht hurting Pattaya hotels

Post by Jun » Wed Nov 27, 2019 9:30 pm

GDP per capita tends to very roughly correlate with income per capita, which should roughly correlate with what people have available to spend on holidays. Obviously the Indian tourists visiting Thailand will be earning way above the average in the country.

How they spend 10,000 baht per day in Thailand, I have no idea. Even if I've paid 2000 baht to keep the bed warm all night, the day's expenditure is likely to come to under 5000.

My guess is they either lie about expenditure on surveys, or if they do get through 10,000 per day, it's a combination of expensive shopping, eating and prostitutes.

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Re: Strong baht hurting Pattaya hotels

Post by Gaybutton » Wed Nov 27, 2019 10:17 pm

Jun wrote:
Wed Nov 27, 2019 9:30 pm
if they do get through 10,000 per day, it's a combination of expensive shopping, eating and prostitutes.
and rip-offs . . .

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