The extended lockdown is leading to more hotel closures and unemployment, while some hoteliers are transforming their hotels into hospitels to avoid the massive slowdown in tourism.
Hotel owners have to decide whether to shift their services and operate as hospitels or temporarily close operations to reduce their cash burn until international tourists return, said Marisa Sukosol Nunbhakdi, president of the Thai Hotels Association (THA).
According to a survey conducted by the association in July, five out of 200 hotels decided to become hospitels to serve Covid-19 patients as the outbreak worsens and hospital beds are fully occupied.
After the lockdown was extended for an additional 14 days, 60% of 16,282 registered hotels nationwide are estimated to have temporarily closed, leading the unemployment rate in the hotel industry to reach nearly 70% out of 900,000 hotel workers.
She said the remaining workers are likely forced to accept a salary cut as owners turn to leave-without-pay policies to preserve liquidity.
The THA called on the government to provide financial aid in terms of subsidies for salaries in order to retain workers as well as cutting electricity bills by 15% to reduce hotels' fixed costs.
"Operators hoped to reopen and see signs of a tourism rebound after the lockdown last April, but the situation will not improve any time soon," Mrs Marisa said. "The problem is we cannot make a business forecast amid the uncertainty, particularly regarding the government's vaccine strategy."
She said even if the number of new daily cases could be trimmed from the current level, hotels could not open with confidence as long as the government drags its feet on mass vaccinations to prevent more outbreaks.
Sitthiporn Hanyanunt, chief executive and general manager at Malaysia Hotel, said more hospitels are needed to curb the outbreak in the country, but hoteliers that want to be hospitels may face opposition from the community, with some worried about their reputations once the sector returns to normal.
Malaysia Hotel has served as a hospitel since April this year, with 160 beds which are mostly occupied. It expects to continue in this capacity throughout the year as its partner hospital still needs beds for patients suffering with other diseases or medical problems.
