The sudden escalation of conflict in the Middle East has badly impacted Thailand’s tourism industry, with traditionally stable sources of foreign tourists drying up. Thailand’s luxury hotels are now trying to attract local guests through steep discounts.
In previous years, from May to October during the rainy season, Thai hotels would launch various promotions and discounts to attract guests during the tourism off-season. But this year, as early as March, searching online for Thai hotel promotions easily yields excellent deals.
The historic Mandarin Oriental Hotel in Bangkok, known for its iconic riverside views, usually charges nearly $1,000 (3,951 MYR) per night. However, now, this five-star hotel’s rates are under $300 (1,185 MYR), including butler service and breakfast.
The Middle East conflict has led to the cancellation of many flights, including vital Eurasian routes for Thailand. This has made travel more complicated and costly, reducing the number of visitors. Just weeks after the conflict erupted, the number of tourists from Europe and the Middle East has already dropped by 16% from usual levels.
Bill Barnett, Managing Director of consulting company C9 Hotelworks, noted that the high-end market is typically less sensitive to price increases, but the recent price cuts point to a shift. Room rates that soared over the past three years are now starting to fall, partly due to increased supply—especially in Bangkok—and expectations for weaker demand during the World Cup, as many people choose to watch the games at home.