Wednesday, August 4, 2010

Bangkok hotels vow to recover

For more than two months this spring, thousands of red-shirted protesters camped in the heart of Bangkok, shutting down a dozen hotels and four high-end shopping malls.

General managers of five hotels close to the conflict zones each said they lost millions of dollars in revenue between April and June. Hotels throughout the country are resorting to promotions and fam tours.

The protesters, mostly rural poor from the north and northeast, demanded dissolution of parliament and fresh elections. The focal point of a three-square-mile occupation area was a large televised stage set up at Rajaprasong. This four-way intersection is best known to visitors for the Erawan Shrine, the Grand Hyatt Erawan and the huge CentralWorld shopping mall.

The protesters were predominantly peaceful, respectful of property and not hostile to tourists or foreigners. But in the final week, as the army encircled the area preparing for its 19 May final assault, violence exploded north of the protest zone along Rajaprarop Road and to the south in the main commercial districts. By then, at least 20 hotels had closed. In Bangkok alone, 38 buildings were set on fire. In the final tally, nearly 90 people were dead and thousands wounded.

For at least the fifth time since the December 2004 tsunami, the Thai tourism industry is in tatters. According to STR, the citywide hotel occupancy in May was 26.2%, down 38.3% from May 2009, about the same as the decline in room demand for the same period. June occupancy has crept up to 34.9%, but two recent small bombings could threaten to keep tourists away, despite the Prime Minister’s lift of the emergency decree in some provinces. The GM interviews took place before these bombings.

Prakit Chinamourphong, Thai Hotel Association president said: “It's difficult to see Thai tourism back to normal in the fourth quarter of this year or even in the first half of 2011 because international tourists aren't confident to travel to Thailand,” according to a story in the Bangkok Post 27 July.

Four Seasons Bangkok and Centara Grand

Approximately a dozen four- and five-star hotels in the Rajaprasong area shut down in the first month. Rainer Stampfer, GM of the Four Seasons Bangkok, watched the number of guests dwindle, governments elevate their travel warnings and a swathe of tents and portable toilets sprout in the surrounding roads for three weeks before he reached a decision. He ended up sending daily text messages to 600-plus home-bound staff for five weeks while a small group of security personnel stayed behind, doing their own cooking and camping.

Surprisingly, the 18-month-old Centara Grand at CentralWorld remained open almost to the bitter end. The high rise was able to remain open because, despite appearances, delivery vehicles were still allowed to enter from the north end of the occupied square, GM Michel Horn said. On 12 May as the army closed in, he convinced his final 12 guests to leave.

The Centara Grand is just west of and connected to the CentralWorld mall. Although the hotel and adjoining convention facilities were not damaged, it took 10 days to air out the smoky smell, Horn said.

Amari Watergate and Pan Pacific

The Amari Watergate and Pan Pacific Bangkok Hotel were located on the northern and southern edges, respectively, of the red-shirt occupation zone. The 589-room Amari is across a bridge and canal, so occupancy stayed up to 40 percent to 14 May, according to GM Pierre-Andre Pelletier. He then cleared out all but 40 to 50 guests within 48 hours. Occupying the top 12 floors of a 31-story building, the 241-room Pan Pacific is a five-star, not quite luxury hotel, according to GM Thomas Mayrhofer. The hotel is a favorite of Japanese businessmen, who disappeared from April onwards. The Pan Pacific, however, could boast spectacular views of the reds’ camps in Lumpini Park. Even before the final battles with the army, TV crews and other journalists moved in along with expatriates fleeing homes in the occupied zone. For two months, there was plenty of drama around nearby Silom Road, culminating in a battle on the roof of the Dusit Thani Hotel.

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