The most noticeable impact comes from escalating operating costs. The more than doubling of jet fuel prices in a short period has forced many Middle Eastern airlines to adjust schedules or reduce flight frequencies. This has led to a sharp increase in airfares, directly affecting international travel demand, especially from long-haul markets that are crucial to Thailand.
Hotel businesses report that the number of guests from Europe, especially the UK and Germany, began to decline significantly from March due to concerns about geopolitical instability and rising travel costs. Popular destinations heavily reliant on international tourists, such as Koh Samui, Krabi, and Bangkok, all recorded a sharp increase in cancellation rates in the early part of the year.
In this context, many large hotel groups in Thailand have been forced to switch to a "defensive" mode, tightening investment and controlling costs to protect profits.
Asset World Corp (AWC) reported first-quarter 2026 revenue of 6.77 billion baht, with the hotel segment growing 12% to 4 billion baht. While EBITDA increased 8.6% to 1.6 billion baht, net profit only edged up 0.9%, indicating that rising operating costs are putting significant pressure on the company.
According to Wallapa Traisorat, CEO of AWC, visitors from the UK and Germany decreased significantly in March, while visitors from the Middle East increased by 24% due to the trend of longer stays amid outbreaks of conflict. However, the overall Middle Eastern market still declined by about 10% in the first quarter.
Faced with difficulties, AWC has tightened costs and temporarily postponed several major projects, including the 100-story building at Asiatique. The company has shifted its focus to upgrading existing assets in line with the health and wellness tourism trend to increase their value.
Despite increasing difficulties, the luxury hotel segment still showed some positive signs, with AWC achieving a record revenue per available room of 5,230 baht/night in the first quarter, thanks to hotels such as the Intercontinental, Marriott, and Meliá Chiang Mai. Banyan Tree Koh Samui recorded an average room rate of around 33,000 baht/night. However, the Central Plaza Hotel in Dubai was heavily impacted with cancellations totaling 250 million baht, and occupancy rates falling to 25-35% compared to around 90% in the same period last year.
Against this backdrop, Thailand's tourism industry is projected to continue facing numerous challenges in the coming months. Pressure from rising energy costs, fuel surcharges, and a decline in long-haul tourists are making the industry's recovery more fragile than ever.
Source: https://baovanhoa.vn/du-lich/giai-doan-day-kho-khan-229759.html
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