Thailand’s Ministry of Tourism is trying to put its recently announced plans to introduce a double tariff structure at local hotels for foreigners and Thai nationals to boost tourism revenue. The idea has sparked a heated debate about whether it is administratively feasible at all, and how much it will affect tourists’ perceptions of Thailand and the country’s image as a holiday destination. Under the dual price structure, foreigners will be charged similar hotel rates as before the pandemic, while locals will continue to enjoy discounted rates. Hoteliers have expressed concern over the government’s plan, saying the move…
Thailand’s Ministry of Tourism is trying to review its recently announced plans Introduce a double tariff structure for foreigners and Thai nationals at local hotels to increase tourism revenue.
The idea has sparked a heated debate about whether it is administratively feasible at all, and how much it will affect tourists’ perceptions of Thailand and the country’s image as a holiday destination.
Under the dual price structure, foreigners will be charged similar hotel rates as before the pandemic, while locals will continue to enjoy discounted rates.
Hoteliers have raised concerns about the government’s plan, calling the move “unrealistic” and asking the government to roll out effective promotions to boost tourism sentiment and instead work to boost room rates.
Some wondered on what legal basis such an order could be handed down to private businesses, and criticized the plan as “not well thought out”, other than conveying “discrimination” between different groups of customers.
“Unrealistic idea”
Marisa Sukosol Nunbhakdi, president of the Thai Hotels Association, said the idea of double pricing is unrealistic as room rates change dynamically according to market conditions. Hotels on each tier also use different strategies to set prices, she said, adding that if demand increases to support hotel occupancy, prices will automatically increase.
Responding to the double pricing proposal, Krabi Tourism Board chairman Charintip Tiyaphorn said the “sensitive issue” could create a negative tourism image as everyone needs to be treated equally and clear communication is crucial.
Demand is too weak to raise prices
Suksit Suvunditkul, chairman of the Southern Branch of the Thai Hotels Association, said it was “common” for hotels to offer discounted rates for Thai residents and regular rates for foreign tourists, but hoteliers couldn’t just raise prices to 2019 levels because demand was too weak .
Facing backlash, Tourism Minister Phiphat Ratchakitprakarn said the government would not “force” hotels to implement the controversial double pricing proposal.
He said there was no mandatory order on the issue, instead the ministry wanted to “encourage” hotels to adjust their rates according to the market. He added that it wanted to “avoid overpricing, support cash flow and maintain the hotel’s service standards”.
