Hotels in Bangkok face negative impact due to anti-government protests

According to data available from STR Global, the ongoing anti-government protests throughout Bangkok, Thailand, by the United Front for Democracy against Dictatorship, commonly known as the red shirts, are having a significant negative impact on the city's hotel performance. The April 2010 daily data performance of occupancy and Average Daily Rate (ADR) in Bangkok has been a rollercoaster ride. A dramatic decline in occupancy was experienced across the city following several disturbance-related fatalities during early April this year. After a slight rebound, occupancy plummeted again as the foreign offices of several key Thai feeder markets, such as Germany and the UK, advised against all but essential travel to the market. With the safety of both guests and staff in mind, some international hotels near areas of intense violence closed and are yet to reopen. These daily performance fluctuations mirror the market's long-term monthly occupancy trends. Declines in the metric began during 2006 at the onset of military control and bounced around throughout 2007. The 2008 protests were more significant: Unrest during August resulted in poor September occupancy levels; following the November airport closures, December also suffered with occupancy of only 38.6 percent. The latest protests are a real blow given that occupancy, in the light of the improving global situation, had begun to trend toward historic norms during the end of 2009 and into early 2010. However, ADR has shown resilience in the face of both fluctuating occupancy and broader ongoing difficulties in the market. April's ADR of Thai Baht (THB) 3,096 shows a less significant drop from February (THB3,371) and March (THB3,331) than the declines in occupancy, which fell 0.2 per cent during April 2010 to 44 per cent, compared to relatively strong showings during February (71.4 per cent) and March (63.3 per cent). Elizabeth Randall, Managing Director, STR Global said, "In spite of violence and significant recent declines in occupancy this past month, Bangkok's hoteliers have held firm with rates, recognising that price reductions do not stimulate demand that is just not there. Discounting would only double the pain for hotels already suffering from falling occupancies." http://www.travelbizmonitor.com/hotels-in-bangkok-face-negative-impact-due-to-antigovernment-protests-10372