Opinion: 'Testing times' ahead for tourism
Andrew Wood, Skal International Bangkok president and general manager of Chaophya Park Hotel & Resorts.
For Thailand's tourism and travel industry, and I guess pretty much everywhere else in the world, what's happening in the US banking sector right now will have numerous implications.
I think it's going to be a rollercoaster over the next eight weeks, and the outcome might not be something to look forward to.
The squeeze on credit among banks and the demise of the weakest ones will have a knock-on effect in other areas. Even if the US passes the proposed emergency bill and injects hundreds of billions of dollars into the financial system, will it be enough, and will it be carried out in time? Frankly, as a consumer I feel reluctant to spend money right now, not really knowing what's around the corner. My discretionary spend is being cut to a minimum in case I need to dip into my savings. I believe I am not along in this thinking, which when multiplied many times over will impact many industries, including tourism.
With banks under pressure, real estate sales will be squeezed and buyers more difficult to find. This will impact on sales of building materials and ultimately home appliances. The sale of new cars, electronic products and holidays will also likely diminish. Follow this through to conferences, meetings and accommodation linked to product launches, exhibitions and sales seminars - they are all likely to be affected negatively too.
October business is already looking very shaky. Occupancies below 50% are becoming the norm in Bangkok and the pressure to reduce costs increases with decreasing occupancy.
Let’s hope that the banking sector can resolve their challenges quickly and then we can start to look forward to happier times.
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