Europeans steer clear amid heatwave

Europe's most severe heatwave has yet to trigger a surge in tourists to Thailand, with Phuket hotels slashing low-season rates by 70-80% compared with the high season as surging airfares continue to deter both domestic and foreign visitors.

The continent has experienced record temperatures since June 20, while France's national weather service forecast a possible recurrence of a heatwave in July. Over the weekend, high temperatures scorched the Czech Republic, Germany and Poland, with the countries recording new records of 41.9°C, 41.7°C and 40.5°C, respectively.

Somjai Tungkoo, vice-president of the southern chapter of the Thai Hotels Association, said summer holidays typically attract large numbers of European tourists, but demand this year has been weaker than expected as many travellers seek to escape the heat by visiting cooler destinations within their region rather than taking long-haul trips.

She said travellers remain concerned about high airfares and are reluctant to spend as much as usual amid economic uncertainty.

Travel costs to Phuket are particularly high, with return domestic airfares from Bangkok to the island averaging nearly 5,000 baht, mainly attributed to increased airfare and fuel surcharges.

Ms Somjai said this is the slowest low season in Phuket in 6-7 years, with average occupancy rates plunging to 30-40% this month, prompting hoteliers to offer steep discounts to attract tourists.

Normally average room rates during the low season are around 50% lower than during the high season, but rates have fallen by 70-80% this year, she said.

For instance, hotels and resorts that charge 5,000 baht per room during the high season have cut their rates to less than 2,000 baht.

The discounts started at beachfront properties, prompting hotels across the island to cut their rates to remain competitive during the sluggish period.

"Our low season this year has been particularly challenging as one of our main target markets during the rainy season, the Middle East, has yet to resume overseas travel because of unrest in the region. The Chinese market has also failed to recover as strongly as it did in the past," said Ms Somjai.

Most hotels are awaiting forward bookings for the high season, with new inquiries expected to increase from this month, she said. While waiting for demand to recover, many hotels have utilised unpaid leave to reduce labour costs.

Hotel operators requested government relief measures and stimulus to help sustain their businesses, particularly soft loans for affected operators and a co-payment subsidy scheme for domestic travellers to absorb some travel costs.