Thai hotels cut room rates as Middle East conflict weakens demand

Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA), said that while 50% of hotels expected tourist numbers to decline as forecast because of the Middle East conflict, another 38% had seen customer numbers “fall more than expected”.

They had therefore responded by cutting room rates and stepping up marketing to attract customers.

Some hotel businesses, meanwhile, had chosen to preserve liquidity by reducing investment or staff-related expenditure.

Looking at the “third quarter of 2026”, most hotel operators believe overall international guest numbers are likely to decline from a year earlier because travel costs remain high.

Some tourist groups could face further pressure if the 60-day visa exemption is ended.

“Indian tourists”, who tend to be price-sensitive, may delay travel if they are required to use Visa on Arrival at immigration checkpoints, which could increase travel costs.

The same applies to “Thai tourists”, with most hotels expecting numbers to decline from the same quarter last year, particularly in the South, because purchasing power remains weak.

They are also under further pressure from higher living costs following the Middle East conflict.

However, some hotel operators expect international tourist numbers in the third quarter of 2026 to rise from the same period last year, particularly among “Chinese tourists”.

This is partly because some are choosing Thailand instead of other regions where travel costs are higher.

The average “occupancy rate” in June 2026 was 52%.

By region, the “Central region” had the highest rate at 65%, up slightly from 64% in May.

The “Eastern region” followed at 53%, down from 60% the previous month.

The “Southern region” stood at 42%, down from 48%, while the “Northern region” was at 37%, down from 39%.

The occupancy rate for July 2026 is forecast at 53%, lower than in the same month last year.

Cre: Nationthailand