Thai hotels want payment in dollars

Thai hotels want payment in dollars

BANGKOK (AFP): The Thai Hotels Association (THA) has appealed to the government following threats by tour operators to blacklist hotels which quote dollar rates for rooms, a report said yesterday.

In a letter to the prime minister's office, THA president Praphandsak Bhaetyanond said the move would benefit the country by bringing in dollars and raising hotel standards, a report in the Bangkok Post said.

"As the baht continues to fluctuate in value, making tourists hesitate to make reservations, quoting the U.S. dollar rates without increasing the price will convince them," the THA letter said.

Tour operators threatened to blacklist the hotels saying charging in dollars would push room rates up and damage tourism in Thailand.

The letter, addressed to prime minister's office minister Jurin Laksanavisit who oversees tourism, comes after 11 five-star hotels in the capital, most of them part of major international chains, said they would start quoting in dollars.

The Thai government has been looking to boost tourism in an effort to help the country out of its worst economic downturn in decades. It is hoped the weaker baht will help draw foreigners.

The Thai currency has lost more than 50 percent of its value since being unhitched from the greenback in July last year.

Praphandsak said there was nothing new about quoting in dollars as most hotels already did so through their overseas sales departments.

He also said bringing in more revenue would help the hotels maintain their standards despite rising costs from the baht's devaluation.

He said that five-star hotels needed dollars as 35 percent or more of their costs were for imported items such as food, beverages and overseas advertising.