Thai hotel sector faces rising closures after widespread losses

Thai hotel closures rose 42% in the first nine months of 2026 after 51% of operators posted losses in 2025, with KResearch warning of further pressure in 2027.

Thailand’s hotel and accommodation sector is facing mounting pressure from weak tourism demand, rising competition and high operating costs, with business closures accelerating after more than half of operators reported losses last year.

KASIKORN RESEARCH CENTER (KResearch) said 148 hotel and accommodation businesses registered their closure during the first nine months of 2026, up 42% from the same period a year earlier.

Meanwhile, about 51% of operators recorded losses in 2025, with smaller businesses the most vulnerable. Around 54% of small operators were loss-making, while 42% had accumulated losses for three consecutive years from 2023 to 2025. Overall, 38% of hotel and accommodation operators recorded accumulated losses throughout the three-year period.

KResearch warned that the outlook for 2027 remained highly uncertain as the tourism recovery stays uneven, competition intensifies and operating costs face further upward pressure.

Hotel market grows, but recovery remains uneven
Thailand’s hotel and accommodation market is expected to be worth about THB1.1 trillion in 2026, up 2.6% from 2025.

Accommodation accounts for about 77% of sector revenue, with the remaining 23% coming from areas including catering, meetings, seminars, food and beverages.

The industry comprises about 15,000 operators, more than 98% of them small and medium-sized businesses, and employs around 430,000 people. Its market value is equivalent to about 5.7% of Thailand’s gross domestic product at current prices, according to KResearch.

Despite overall revenue growth supported by international meetings and conferences and continued domestic travel, the recovery has not been evenly distributed.

New business registrations also slowed. A total of 779 hotel and accommodation businesses were established during the first nine months, down 31.2% year on year, although the figure remained above the comparable level in 2024.

Source: TheNation 

7 Airlines To Slash Airfares By Up To 20% From Jan. 2023

THE Thai Airline Association said today (Dec. 26) that seven airlines are going to cut airfares by up to 20% from January 2023 after the government reduced the excise tax on jet fuel to only 20 satang per litre to stimulate tourism, TV Channel 7 said.

Mr. Puttipong Prasarttong-Osoth, president of this association, said excise tax on jet fuel was cut to 20 satang per litre from 4.726 baht for six months starting January.

All seven airlines will be jointly organising a special promotion with all air fares to be gradually reduced by up to 20% depending on how each airline arranges it.

“The seven airlines will gradually organise this promotion with a maximum discount of 20% from the beginning of January 2023 onwards and I believe that this will help stimulate travel and tourism in all regions,” he said.

The seven airlines participating in this promotion are Bangkok Airways, Thai AirAsia, Thai AirAsia X, Thai Smile, Nok Air, Thai Lion Air and Thai VietJet.

Meanwhile Mr. Nitinai Sirismatthakarn, president of Airport Authority of Thailand (AOT), forecast that air traffic volume during Dec. 29, 2022 – Jan. 4, 2023 at all its six airports will be around two million passengers, an an increase of 171.28% over last New Year (Dec. 29, 2021- Jan. 4, 2022).

Of this total around one million will likely be international passengers, an increase of 832.51%, and around one million domestic passengers, an increase of 57.05%.

There will be around 12,190 flights, an increase of 87.01%, divided into approximately 5,340 international flights, up 260.53%, and around 6,850 domestic flights, up 35.98%.

With all six AOT airports, Suvarnabhumi, Don Mueang, Chiang Mai, Chiang Rai’s Mae Fah Luang, Phuket and Hat Yai, being crowded passengers are requested to come to the airport two to three hours in advance so as to not miss their flight.

Source - ThaiNewsRoom

YOUR AFFILIATE / REFERRAL LINK HERE

.