Thai hotel operators have applauded the finance minister’s decision to accelerate use of the 10-billion-baht meeting and seminar budget for government agencies, although they would prefer the stimulus to begin in May next year to cushion the low-season impact.
Finance Minister Ekniti Nitithanprapas said the government would encourage state agencies to spread their activities throughout the year instead of concentrating plans in the last quarter of the fiscal year, between July and September.
Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA), said the policy could benefit hotels in second-tier destinations, as they are highly dependent on meetings and seminars, which typically make up 50% of customers, the same proportion as leisure guests.
Hotels in these 55 less-visited provinces consistently draw fewer leisure guests compared with popular provinces, he said. For instance, hotels in the main tourism destinations secured an average occupancy of more than 60% this month, but hotels in the 55 provinces recorded occupancy of only 30-35%, said Mr Thienprasit.
He said the government should also consider adjusting its outdated coffee break rate of 80 baht per head. This rate is the budget for food and beverages during meetings.
The Comptroller-General’s Department, which mandates this cost for government agencies, has not revised it in 18 years despite product and service costs rising every year.
Mr Thienprasit also said the government should regulate accommodation owned by state agencies, some of which are large projects that lack hotel licences, though agencies are mandated to book their seminars with their own facilities if possible.
Given the projected four-month tenure of the current administration, Mr Thienprasit said hotel operators are more concerned that the low season will occur during a political vacuum after the anticipated general election in March or April next year.
Both public spending on meetings and seminars, as well as outlays from the new co-payment scheme for travellers to second-tier cities, should begin from May to August 2026, according to the THA.
‘During the final quarter of this year and the first quarter of next year, we can still rely on foreign tourist demand during the high season,’ he said.
Hoteliers are hoping bookings in November and December will at least match the 2024 level, said Mr Thienprasit. This year, only in January did foreign arrivals reach 3.7 million, exceeding the same period last year, which recorded 3.03 million.
He said the decline in foreign arrivals of 7.5% year-on-year over the first nine months is largely attributed to short-haul markets, as long-haul markets posted monthly figures outperforming 2024.