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BANGKOK 16 June 2019 17:43
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Chiang Mai’s small to medium hotels face challenges

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Chiang Mai’s small to medium hotels face challenges

By The Thaiger

 

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FILE PHOTO (This hotel is not for sale!)

 

Chiang Mai’s small to medium accommodation sector is facing fresh challenges as the tourist mix in the northern city changes, and shrinks in arrival numbers.

 

The fallout from declining tourist arrival numbers, especially Chinese since the Phuket Phoenix tourist boat tragedy in mid-July, is forcing more than 10 small hotels and hostels in Chiang Mai to put their properties up for sale.

 

According to Nikkei Asian Review, the offering selling prices range from a few million baht up to 50 million baht as the hotel or hostel operators have been hard hit by the sharp drop of tourists arrivals from China since July 5 since the boat tragedy in the Andaman Sea south-west of Phuket when 47 Chinese tourists drowned.

 

Full story: https://thethaiger.com/thai-life/property/chiang-mais-small-to-medium-hotels-face-challenges

 

 
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-- © Copyright The Thaiger 2018-11-25
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they also said that there was only a 20% drop in Chinese tourists, all from that part of Thailand?

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We discussed this already, these are either licensing issue hotels as BM points out above or they are fairly recent leasehold ventures by Chinese proxies designed to capitalise on the Chinese masses.

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And still building more hotels in and around Chiang Mai.

Maybe its time to stop giving licences for new hotels to be build?

Or would that mean logic thinking ? Then forget about it!

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Wondering if these small and medium-sized hotels are fully/properly licensed or do they use the brown envelope licensing method. The brown envelope method may not be viable with a hotel licensing crackdown and tourism downturn.

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Actually a lot of the smaller hotels are directed to the Chinese market as well as a few hostels. Most of these seem to be run by the Chinese.

If anything I would say the larger/more expensive hotels have largely been kept afloat by the Chinese the past few years, so these should be taking a hit too.

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I don't think a fall in the current tourism dynamic is a bad thing for Thailand and the locals themselves. It would give them pause for thought and maybe some introspection as opposed to continually pursuing this greedy headlong charge for every higher tourist numbers, at any price, and the destructive consequences that go along with it unless properly managed...which isn't happening.

 

2 hours ago, cmsally said:

Logically it would mean the larger hotels are even harder hit and there is no mention of them.

As for larger hotels (and other businesses) excluding international chains like say Marriott etc. which can weather such conditions due to a large international presence, it wouldn't surprise me that many other locally owned, or Chinese owned via proxy, are used for money laundering purposes and care not for actual occupancy rates or real business figures as revenue inspection/scrutiny here seems to be quite absent (especially for the rich elite) and only occasionally get caught out with that probably happening due to them upsetting someone important, some higher power or it ends up in the media and there is no choice but to investigate. Just the small and some medium sized businesses that are trying to actually do the business are the ones suffering. No SFO or effective IRS really here and investigators may well be threatened off if they did try to uncover anything along these lines. Obviously, as mentioned, licensing issues could also play a part.

Edited by Brigand
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I have seen so many gated communities with just a few of the houses lived in

and some that have totally failed, and have only a few Thais living in a few of he 20 to

30 houses. Has that situation changed as well. NO! This is Thailand and that kind of

stuff, or building too many hotels hasnot as well.

Geezer

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especially Chinese since the Phuket Phoenix tourist boat tragedy in mid-July,

 

Its a total fake news story, topic is Chiang Mai so why is it linked to a Phuket issue?????

 

The demise of tourists in high season has been happening for 2 years now in CNX ask the local business people. So its part of TAT denial and loss of face that has come home to roost!

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