Combined losses among Thai hotels due to the collapse of the German tour operator FTI Group have escalated to 170 million baht, up from 111 million baht reported in a preliminary survey conducted in June.
Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA), stated that 179 hotels across Thailand have been affected. The majority of these hotels are situated in the southern region of the country, with 113 hotels impacted, followed by 33 hotels in Bangkok.
The southern hotels experienced the most significant financial loss, estimated at 141 million baht, while those in Bangkok and eastern Thailand faced losses of 19 million baht and 8.4 million baht, respectively.
According to the THA, all types of hotels, including both local brands and international chains, have struggled to collect payments from FTI Group. Some hotel companies have reported losses exceeding 10 million baht, particularly those with multiple properties targeting European guests and who had contracts with the FTI Group.
Mr. Thienprasit mentioned that the association has submitted a letter to the Tourism Authority of Thailand (TAT), which aims to address the issue with the Tourism and Sports Ministry and the German Embassy.
If no progress is made, some hotels might contemplate legal action against FTI’s partner agents registered in Thailand as a potential way to receive compensation while awaiting assistance from the ministry.
“Hotels need to explore alternative solutions, as recent political changes might further delay resolution of this issue,” Mr. Thienprasit remarked.
He emphasized that the new government under Prime Minister Paetongtarn Shinawatra should continue active tourism promotions, as these initiatives have significantly boosted tourism over the past year.
“Former prime minister Srettha Thavisin was very proactive and responsive to tourism matters. We hope the new leader will maintain this momentum, especially with the high season approaching,” he added.
Suksit Suvunditkul, president of the southern chapter of the THA, reported that hotel businesses in the South are experiencing a 60% occupancy rate during this low season, comparable to last year’s levels due to the monsoon season along the Andaman coast.
Despite the addition of numerous festive events to the calendar, only a slight improvement has been seen among premium hotels.
Mr. Suksit also expressed hopes that the new government will continue infrastructure development projects in the South, particularly the proposed new international airport in Phangnga, aimed at alleviating congestion at Phuket International Airport, a project initiated by the former prime minister.
