Mega Projects Increase Properly Value Sees Small Hotels Rush to Cash Out

 | Mon 26 Nov 2018 17:18 ICT

CityNews – Small hotels are selling their businesses in droves due to increasing property value, and not, as many are speculating, because of the effects of dwindling Chinese tourist, experts claimed.

Many small hotels in Chiang Mai have been cashing out of late, but experts say that the rush is not directly affected by the decreasing number of Chinese tourists. Pornchai Jitnavasathien, the former president of Tourism Council of Chiang Mai stated that such claims have emerged due to misinterpretation of the situation. He explained that Chinese tourists are but a partial factor to this occurrence, with those impacted the most from dwindling numbers of Chinese tourists, the tour companies and agents. For the hotels, the decreasing numbers are not so dire that hotels are forced to sell out their businesses. The main factor, he stated, is the increasing value of properties following the announcement of impending infrastructure development projects, such as the second airport and the bullet train.

Pornchai explained that most of these hotels are small businesses who were swayed by the influx of Chinese tourist to develop their own residences into accommodation services. These owners tend not to be experienced nor adept in the hospitality business and a straight out sale generate profit more than running a hotel, was a more attractive option. Another factor is the recent police crackdown on issuing hotel permits. He continued to explained that the Chiense tourists are roughly divided into individual travellers and those with group tours. The decreasing numbers are from the latter group which will heavily affect medium sized hotels, not small, hotels.