Restaurant operators don’t expect the upcoming eight-day Chinese Golden Week to supercharge the industry’s mood, as the number of Chinese customers might not reach as high a level as last year.
China’s National Day holiday and the Mid-Autumn Festival this year run from Oct 1-8.
China’s state-run Xinhua news agency reported on Sunday, citing the Ministry of Transport, that travel demand during the period is expected to be robust, with a substantial increase in the number of Chinese nationals travelling abroad.
However, the Tourism Authority of Thailand predicts the country will welcome around 200,000 Chinese arrivals from Sept 26 to Oct 8, a 24% drop year-on-year.
Rawat Khongchat, a member of the Night Restaurant Business Trade Association, said restaurant businesses are currently facing negative sentiment from Thai customers, resulting from the sluggish economy, uncertainty surrounding domestic politics and the border dispute between Thailand and Cambodia.
He added that local diners are taking a more cautious approach to spending, resulting in less spending on nights out, which hurts the night restaurant business.
Revenue in the first and last quarters represents a lifeline to these businesses, as they contribute the majority of annual income, he noted.
Moreover, he also observed a drop in the number of Chinese visitors.
“During this Golden Week, the night restaurant business might be boosted, but the number of Chinese diners during this Golden Week will not be as high as before,” he said.
Meanwhile, other growing markets such as India and Europe may not sufficiently offset the decline in Chinese diners, he added.
Kamol Meechaipattanakit, a member of the southern subcommittee of the Restaurant and Goods Product Association, anticipates that the restaurant sector in the South would remain flat or grow slightly in October.
He expects the number of Chinese diners during this long holiday to either match last year’s figures or experience a slight drop.
Mr Kamol urged the authorities to hold promotions to attract travellers from the short-haul markets.
Mr Rawat called on the government to restore tourists’ confidence, especially regarding safety concerns, by tackling negative news about Thailand.