Chiang Mai’s tourism industry is currently facing a significant downturn. The decline in foreign visitors has affected various sectors, particularly car and motorcycle rental services. Reports indicate that vehicle rentals have dropped by more than 70%, forcing some operators to temporarily shut down due to unsustainable operating costs.
One clear sign of the downturn is on Moon Muang Road near the Tha Pae Gate, where dozens of motorcycles sit idle in front of rental shops. Shop owners describe the situation as unprecedented in recent years, with many noting that foreign tourists have almost completely disappeared.
Siwanat, the owner of Mr. Mechanic Car Rental said the shop has been operating for nearly 20 years. Aside from the COVID-19 pandemic, this period is considered the most sluggish for the car rental business. In previous years, there were still enough customers renting cars to sustain the business through the low season. Now, the situation is far more difficult as tourist numbers have dropped significantly.
The current situation has left her shop struggling to cover ongoing expenses, including employee salaries, rent, and vehicle maintenance. She noted that some rental businesses have chosen to temporarily close down and wait for the upcoming tourist season from October to February, in the hope that tourism will recover by then.
She also urged the government to introduce effective measures to stimulate and revive the tourism sector, particularly efforts to attract foreign visitors back to Thailand. Without intervention, she warned, the entire tourism industry risks collapsing. As for the “Half-Half Thai Travel” campaign, she expressed doubt that it would benefit the car rental sector, which relies heavily on foreign customers.
