BANGKOK – With Thai Air having already cancelled direct flights to Moscow and analysts expecting 100,000 fewer Russians to Pattaya and secondary Thailand destinations, the future is looking challenging.
A crisis created by dramatic decrease in crude oil prices has plunged the Ruble into a 40% drop in value and still heading south. Many Russians are offloading recently purchased condos and that is placing an additional worry and strain on the area at this time.
Hotels and tourism businesses hoping to offset occupancy losses of upwards of 80% must avoid the possible terminal decision to fill beds with low spending Chinese tourists.
Bottom end Chinese tourists are lowering the bar and creating a serious situation affecting all other associated tourism.
This could bring down the future of Thailand tourism very quickly.
The money spend is not sufficient to recover refurbishment costs and increased maintenance. This leads to serious poor reviews, impacting future bookings due to the pace of the internet highlighting the trend.
Thailand’s tourism, like the national airline (TG), needs a wake-up call.
There is absolutely no future in double digit growth of bottom end Chinese tourism. It’s not a savior, it’s a nail in the coffin.
Losses to tourism and property businesses in Pattaya could reach 1 trillion baht spend reduction in Pattaya/Jomtien by May 2016