Chiang Mai tourism operators are anxious, hoping the province's unsafe levels of PM2.5 air particle pollution subsides later this month as the Songkran holiday draws near.
Phunut Thanalaopanich, president of the northern chapter of the Thai Hotels Association, said the polluted environment is affecting tourism sentiment this month as fewer bookings have been made.
The average occupancy in March is forecast to reach 50-60%, largely driven by guests who booked reservations before learning about the unhealthy levels of air pollution in the province, according to the association.
According to the Tourism Authority of Thailand, the fifth phase of the government's hotel subsidy campaign, which was fully booked last week, recorded a low booking rate for Chiang Mai, which was ranked 15th in terms of revenue.
Mr Phunut said there has not been a joint meeting between the public and private sectors to systematically work on solving the problem together.
The province still lacks a concrete long-term plan to battle the problem, which happens every year, he said.
To maintain positive tourist sentiment, operators must let their customers know how to best protect themselves from the haze, said Mr Phunut.
"Advanced bookings don't look good for April despite the popularity of the Songkran holiday," he said.
"However, as domestic tourists now have a short lead time in terms of booking before they travel, we're anxious for air quality to improve by the end of March, hoping to see demand return in April."
Prior to the pandemic, the Songkran holiday in Chiang Mai helped most hotels to record occupancy rates of more than 90% as various cultural and entertainment events were organised, said Mr Phunut.
However, the city prohibited festive events from taking place during Songkran for the last three years because of concerns regarding Covid-19 outbreaks.
He said tourism operators have not heard from the province regarding updated regulations for this year's Songkran festival and there are no talks scheduled regarding event planning.
Water splashing around Chiang Mai's historic moat has long been a popular activity for visitors during the festival.
If authorities allow the water festival to resume in this area for the first time since 2019, tourism operators are confident it will help restore the tourism market next month, said Mr Phunut.
He said Chiang Mai attracts roughly 10% of its foreign tourists during March, with a combination of Asian and European tourists visiting the city.
The long-haul market has not been affected by recent interest rates hikes yet as these customers booked their trips last year, said Mr Phunut. They tend to stay for longer, with trips lasting 7-8 days rather than 3-4 days.
However, tourism operators remain cautious regarding any future impact as they can predict softer demand over the next few months if economic tensions escalate overseas, he said.
The hotel industry in the province still needs 15-20% more workers as nearly 100% of the hotels have reopened, said Mr Phunut.
