Tourism/THA

Chatrudee Theparat

THA has expressed concerns on daily labor wage hike to 400 baht that it would send a negative impact on the hotel industry, especially the small and medium-sized players may go out of business.

Vason Kittikul, president of Thai Hotels Association (THA) Western Chapter, disagreed with the government policy on daily minimum wage hike to 400 baht. He said there is a high possibility of small and medium-sized hotels to collapse because 40% of cost is from labor wages. However, large hotels may survive.

Vason Kittikul, president of Thai Hotels Association (THA) Western Chapter

“The increase of daily minimum wage to 400 baht may be appropriate in the next two years.”

Before the Covid-19 pandemic, the proportion between human resources per room in each hotel was one person per one room. However, the rate was changed to one person to take care of two rooms in the post-pandemic era. The adjustment was aimed at reducing labor cost due to a sharp fall of both and foreign tourist numbers.

Hotels have just recovered from the pandemic but their income and growth hasn't reached the pre- Covid-19 level. They need to take more time to accumulate revenue to improve their hotels.

In late 2023, occupancy rate of hotels in Phetchaburi was 60-70%.

He also voiced that small and medium scale hotels nationwide may collapse If the government proceeds 400 baht of daily minimum in nationwide.

After the mobile cabinet meeting in Phetchaburi, Prime Minister Srettha Thavisin reaffirmed on last Tuesday (May 14) the government has endorsed the policy to increase daily minimum wage to 400 baht.

Labour Minister Pipat Ratchakitprakarn reported to the cabinet that low income earners have faced a difficult time due to higher living cost hit by a rising cost of oil price and consumer products. They are in struggle.

The ministry will later implement possible measures to assist small and medium enterprises which are expected as the group to shoulder the burden from the increase of minimum wages.

The ministry will soon talk to the commerce ministry on an the hike of product price, and to the finance ministry about the launch of supportive measures to assist SMEs such as tax measure and an decreasing of interest rate.

Mr Vason said entrepreneurs in Phetchaburi, both tour operators and hotels, have joined hands to boost the tourism industry in the province in order to survive in the long term.

“We have planned to build a tourism linkage between northern and eastern main tourism spots to Phetchaburi province. Currently, Air Asia has launched a daily flight from Chiang Mai to Hua Hin airport. The private sector will talk to related parties to boost more linkage tourism between two provinces. Tourism operators aim to boost more visitors in order to prolong the Chiang Mai-Hua Hin route until the end of the year.”

Chiang Mai airport has many international flights, the flight between Chiang Mai and Hua Hin will help to facilitate foreign visitors to the region.

“We hope other routes will be resumed such as Hat Yai-Hua Hin in order to boost the number of southern visitors to visit to Phetchaburi and nearby provinces. The route also can attract Malaysian visitors to travel in those areas.”

Currently, Phetchaburi is a popular destination among family and elderly groups of Scandinavian countries. He said the province has a variety of tourism spots including beaches, natural places and cultural destinations.

The Tourism Authority of Thailand (TAT) governor Thapanee Kiatpaibool said the cabinet authorized the Transport Ministry to accelerate to upgrade Hua-Hin airport. The upgrading plan is required to be completed in one year and half from the previous two years, including an expansion of the runway.

In order to boost tourism in the province "Amazing Cha-Am - Hua Hin Consumer Fair” will be organized. There are more than 20 leading tour operators in the Cha-Am and Hua Hin areas to participate in the fair. They aim to attract northern tourists to visit to Cha-am and Hua Hin.

A new landmark of Phetchaburi, the largest Naga statue in Thailand, a prototype from the northeastern region designed by a national artist

TAT also aims to conduct marketing programmes in the central provinces to stimulate travel frequency and increase tourist spending between main cities and second-tier tourism provinces following on three strategies.

In 2022, Petchaburi welcomed 8.9 million including Thai and foreign visitors, generating revenue 24.39 billion baht. The number of visitors was up to 10.8 million in 2023, generating income 32.33 billion baht. Foreign visitors alone were 49,931, generating 207 million baht in 2022. The foreign visitors dramatically increased to 149,024, generating 1.25 billion baht.