The fear of flooding in Bangkok has caused hotel occupancy in Bangkok to slump. According to the latest daily data from STR Global, the Thai capital’s hotel industry didn’t experience major declines in terms of occupancy and rate in the first few weeks of the flood crisis. In fact, until the beginning of last week, daily occupancy levels remained around the 65% mark. Average room rate (ADR) has held fairly close to the same level as the previous year with a month-to-27 October ADR of THB2,980 (US$97), compared to THB2,977 month-to-date in 2010.
The situation deteriorated last week however, with Don Meuang airport closing and several governments warning their citizens against all-but-essential travel to the city. After these setbacks, occupancy levels started to decline, and were followed soon after by a drop in ADR.
“As our thoughts go with those affected directly by the flooding in Bangkok and the region, we also recognise it will be important that visitors return as quickly as possible to the region as a way to support the recovery efforts,” said Elizabeth Randall, Managing Director at STR Global.
The flooding, and negative media coverage surrounding it, have marked a significant setback to Bangkok, which had previous enjoyed a year of strong recovery. After the political protests of 2010, occupancy in Bangkok had increased 26.6% in the first nine months of the year, while ADR climbed 8.3%. Desoite the fact that floodwaters have not hit the main business and tourist areas of Bangkok, hoteliers in the Thai capital are now trying to salvage their business for the remainder of 2011.