Small scale hotels may collapse caused by 400 baht daily wage

Small scale hotels may collapse caused by 400 baht daily wage
Small scale hotels may collapse caused by 400 baht daily wage

Thai Hotels Association(THA) Petchaburi Chapter voices of small and medium scale hotels nationwide may collapse If the government proceeds 400 baht of daily minimum in nationwide.

Prime Minister Srettha Thavisin reaffirmed on Tuesday (May 14) the government policy to support an increasing daily minimum wage to 400 baht.

He said after the mobile cabinet in Phetchaburi that the government continues a policy to support an increasing daily minimum wage to meet 400 baht.

The Labour Ministry reported to the cabinet that a continued increase in the cost of living domestically

was cause by increasing oil price and increasing consumer products. Those are too burdensome among less income earners.

The ministry will later. Implement possible measures to assist small and medium enterprises

which are expect as the group to shoulder the burden from an increase of minimum wages.

The ministry will soon talk to the commerce ministry On an increase in the price of goods

And the finance ministry on implementing measures to assist SMEs such as tax measure and an decreasing of interest rate.

Vason Kittikul, president of Thai Hotels Association (THA) Western Chapter
Vason Kittikul, president of Thai Hotels Association (THA) Western Chapter

Vason Kittikul, president of Thai Hotels Association (THA) Western Chapter who disagreed with the government policy on minimum wage said there is a high possibility of small and medium scale hotels to collapse because 40% of cost are from labor wages.

Before Covid-19, the proportion between human resources per room in each hotel was one person per one room. The rate was chang to one labour to take care of two rooms of post pandemic. The adjustment caused more burden among hotels.

Especially small and medium scale lodgings thanks to a heavy slowdown of both and foreign visitors.

Hotels have just recovered from the pandemic.

But their income and growth has yet to reach statistics before Covid-19. They need to take time to accumulate revenue to improve their hotels.

Late 2023, occupancy rate of hotels in Phetchaburi was 60-70%.

Next two years is appropriate time to increase

Mr Vason said the increasing daily minimum wage to 400 baht may be appropriate in the next two years.

Entrepreneurs in Phetchaburi, both tour operators and hotels, have joined hands to boost the tourism industry in the province.

“We planned to build a tourism linkage between northern and eastern main tourism to Phetchaburi province. Currently, Air Asia implemented a daily flight from Chiang Mai to Hua Hin airport. This aviation route will proceed this August while the private sector

will talk to related parties to boost more linkage tourism between two provinces. Tourism operators aim to boost more visitors in order to prolong the Chiang Mai-Hua Hin route until the end of the year.

Chiang Mai airport has many international flights, the aviation route between Chiang Mai-Hua Hin will help to facilitate foreign visitors to the region.

“We hope other routes will be resumed such as Hat Yai-Hua Hin in order to boost southern visitors to travel in Phetchaburi.

And nearby provinces. The route also can attract Malaysian visitors to travel in those areas.”

Currently, Phetchaburi is a popular destination among family groups and elderly groups of Scandinavian countries.  

Upgrading Hua-Hin airport

Tourism Authority of Thailand, governor Thapanee Kiatpaibool said the cabinet authorized the Transport Ministry to accelerate an upgrading Hua-Hin airport. The upgrading plan is required to be completed in one year and half from the previous two years. The upgrading plan include an expansion of runway   

She said TAT Phetchaburi Office and TAT Prachuap Khiri Khan Office will implement an activity called “Amazing Cha-Am – Hua Hin Consumer Fair.” There are more than 20 leading tour operators in the Cha-Am and Hua Hin areas to participate in the fair. They aim to attract northern tourists to travel to Cha-am and Hua Hin.

TAT also aims to conduct marketing programmes in the central provinces to stimulate travel frequency.

And increase tourist spending between main cities to second-tier tourism provinces following on three strategies.

The strategy included “Must Do in Thailand” and “Must Eat Thai food”- aiming to boost Phetchaburi which is a Gastronomy City, a creative food city.

Phetchaburi province, supporting food tourism as a network of creative food cities that have been announced by UNESCO. 

Phra Nakhon Khiri Historical Park
Phra Nakhon Khiri Historical Park

TAT organize the Phra Nakhon Khiri Festival. An annual event in the area in the form of Light & Sound to become an international festival.

Focuses on faith

To focus on faiths with an offering ” Faith leading the way of tour routes to present a new landmark of Phetchaburi. The largest Naga statue in Thailand, a prototype from the northeastern region designed by a national artist. The highlights are the 9 curves of auspiciousness at Tham Chaeng Temple, Cha- am District.

a new landmark of Phetchaburi.The largest Naga statue (at Wat Tham Chaeng) in Thailand, a prototype from the northeastern region designed by a national artist.
a new landmark of Phetchaburi.The largest Naga statue (at Wat Tham Chaeng) in Thailand, a prototype from the northeastern region designed by a national artist.

Petchaburi also has other historical tourism sports of the old temple which can attract both Thai and foreign visitors. They include Wat Huay Mongkol, Wat Mahathat Woraviharn.

In 2022. Petchaburi welcome 8.9 million both Thai foreign visitors. Generating revenue 24.39 billion baht. The number of visitors is up to 10.8 million in 2023, generating income 32.33 billion baht.

Foreign visitors, alone, were 49,931, generating 207 million baht in 2022. The foreign visitors dramatically increased to 149,024, generating 1.25 billion baht.

Related News : PM Srettha Thavisin confirmed a 400 baht daily minimum wage