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Booking Slump Hits Thailand Hotels as European Arrivals Decline

Terry Felix​​​​   On April 30, 2026 - 2:37 pm​   In Asia Pacific   2mn Read
Booking Slump Hits Thailand Hotels as European Arrivals Decline Booking Slump Hits Thailand Hotels as European Arrivals Decline

BANGKOK, April 30, 2026 — Hotel bookings across Thailand have fallen sharply ahead of the mid-year travel season, with industry officials citing rising airfares and uncertainty linked to the Middle East conflict as key factors dampening demand.

The Thai Hotels Association (THA) said forward bookings beginning in May have declined across all segments, from budget to luxury, with provinces reliant on European tourists among the hardest hit.

Phangnga is expected to see occupancy rates drop to as low as 20–30%, while Phuket is projected at 40–60% and Krabi between 20–40%, according to the association.

European arrivals have fallen significantly, with declines of around 17.5% in Phuket and up to 30% in Krabi, particularly from key markets such as Germany and the United Kingdom.

THA President Thienprasit Chaiyapatranun said the downturn was driven largely by higher jet fuel costs pushing up airfares, discouraging long-haul travel, while geopolitical uncertainty has prompted many tourists to delay bookings.

Luxury hotels have also been affected, with occupancy rates in May forecast at about 40%, slightly down from a year earlier.

In northern Thailand, hotel occupancy is projected to fall to just over 40%, compared with more than 60% last year, with air pollution cited as an additional factor weighing on domestic and regional travel demand.

Some growth has been recorded from Asian markets, particularly China, India and Malaysia, but industry officials said the increase has not offset losses from higher-spending European visitors.

The THA warned that second-quarter performance is likely to weaken further if conditions persist and has urged the government to introduce support measures, including delaying new tourism fees, reducing energy costs and boosting domestic travel.

Thailand is entering its traditional low season from May to October, adding further pressure on operators already facing global economic uncertainty and a slow post-pandemic recovery.

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