Hotel operators in Chiang Mai are offering significant discounts as they respond to declining European arrivals and weakening confidence among domestic travellers amid ongoing fuel shortages.
To stimulate demand ahead of the upcoming Songkran Festival, many properties have introduced promotional rates ranging from 20% to 40%.
According to Paisarn Sukjarean, president of the Upper Northern Chapter of the Thai Hotels Association, European visitors—who typically account for around 30% of Chiang Mai’s total arrivals during this period—have continued cancelling April bookings due to limited flight availability to Thailand.
He added that the European market is expected to remain affected for at least six months, even if conditions in the Persian Gulf improve, as traveller confidence is unlikely to recover quickly enough to support new bookings.
In the short term, there has been little to no new demand from both European and Middle Eastern markets. Forward bookings for the upcoming Songkran period have also declined to 55–60%, down from a previous range of 60–70%, he said.
Under normal conditions, Songkran typically drives occupancy rates in Chiang Mai up to around 90%, supported by a strong influx of both international and domestic tourists.
However, this year, operators are aiming to maintain occupancy at a minimum of 70%, as Thai travellers remain cautious about undertaking long-distance road travel due to fuel-related concerns.
Mr. Paisarn noted that reduced energy confidence is already affecting domestic travel sentiment, particularly after travellers encountered difficulties during cross-provincial trips over the recent Qingming Festival (Tomb Sweeping Day) period.
“Personally, I also took a Qingming trip to Chon Buri this week. Of the three petrol stations we visited, only one allowed us to fill the tank with benzine, but it was capped at 500 baht.
Most Thais still hesitate to book their rooms and might wait until a week or just a few days before travelling if they plan to take a road trip during this Songkran holiday,” he said.
He further explained that most three-star and lower-tier hotels have already reduced their room rates in an effort to retain domestic customers while also attracting international demand, particularly from Asian markets.
On average, prices in this segment have fallen by around 20%, while four- and five-star hotels have largely maintained their existing rates.
“Some hotels are even offering a 40% discount during the long holiday. For example, some properties have slashed their rates from typically 2,000 baht to only 1,200-1,300 baht a night,” said Mr. Paisarn.
Despite these challenges, he noted that Chiang Mai’s overall tourism outlook may be relatively stronger than other destinations, as the province continues to attract a steady flow of Chinese visitors.
Asian markets are also expected to grow, accounting for approximately 10–15% of total visitors.
Forward bookings from China for the Songkran period are reportedly rising by 10–20%, reflecting improved traveller confidence in returning to Thailand.
Meanwhile, provincial authorities continue to proceed with plans to host the traditional 12-day Songkran celebrations as scheduled, featuring cultural events and water-splashing activities across the city.
