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Chiang Mai hotels battle tourism disruptors

Chiang Mai hotels battle tourism disruptors

PHUKET: Thailand’s northern tourism hub of Chiang Mai has become a victim of its own volume-driven success, reports the newly released C9 Hotelworks Chiang Mai Hotel Market Update.

tourismeconomicsChinese
By The Phuket News

Monday 8 July 2019, 10:43AM


According to hospitality data provider STR, market-wide hotel occupancy for the first five months of the year is down 5.1%, compared to the same period in 2018, notes a release announcing the report issued today (July 8).  (See release here.)

The comparison between 2018 when the gateway airport surpassed a record-high 5 million passenger arrivals and now in 2019 as haze and air pollution strongly impacted tourism, are startling reminders how fragile traveler's shifting appetites can be, said C9 Hotelworks Managing Director Bill Barnett in announcing the report.

Looking into the numbers this year, total hotel supply in the market is 48,000 keys which is creating a powerful necessity for Chiang Mai to step outside its boutique image and find ways to fill rooms with more mainstream offerings, he said.

“A number of properties in the incoming pipeline are branded with international operators, as owners are looking for a competitive edge. The recent opening of the Novotel Nimman Journeyhub is just one example of a Bangkok developer looking to diversify into more affordable hotel assets outside of Thailand’s capitol,” he added.

Talking to hotel operators, C9’s research has highlighted that Chiang Mai’s mounting reliance on the Mainland Chinese sector, which is in the midst of a slowdown is cause for concern. In the first half of last year, China was the number one international source market, holding a 14% share in hotel guests, Mr Barentt explained.

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“In the longer-term, moving past pollution, Chinacation and over-development issues, the bigger issue is how will Chiang Mai evolve from a headlong dive into a far bigger tourism pool and still retain the destination’s long-lasting image as a cultural icon? Same same, but different looks to be a challenging task ahead,” Mr Barnett pointed out.


To download and read C9 Hotelworks full Chiang Mai Hotel Market Update, click here.

 

 

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