Hotel operators are calling for a reduction of the fuel tariff and peak hour rate to help keep operating costs down amid sluggish tourism spending.
Though the government is set to introduce a single electricity rate of 4.77 baht per kilowatt-hour (unit) from May, which is a cheaper rate for businesses, hotels cannot immediately pass on the burden of rising energy costs to room rates, Udom Srimahachota, vice-president of the western chapter and environment chairman of the Thai Hotels Association (THA), said on Thursday.
"Hotels may seem as though they've recovered from the (Covid-19) pandemic, but we're in the early stage of revival and still need more time to adjust to costs," he said.
According to the THA, electricity bills typically accounted for less than 5% of operating expenses each year before 2020, but have now increased to 10-12%, especially during the hot season.
Mr Udom said the hot weather prompts increased use of electrical appliances, while hotel guests also tend to spend more time in their rooms.
He said even though hotels have adjusted their internal operations to save energy, such as shifting laundry and maintenance jobs to nighttime to reduce costs, these measures do not reduce electricity bills by much.
Even though the Energy Regulatory Commission is set to discuss a further reduction of the rate on Friday, which could cut the rate from 4.77 to 4.70 baht per unit, Mr Udom said the rate remains high, particularly when room rates remain intensely competitive.
He urged the government to maintain an average rate of 3.50 to 4.00 baht per unit, as occurred prior to the pandemic.
Authorities should also consider reducing the peak time rate for electricity fees calculated from time of use tariff because most consumption at hotels occurs during the day, said Mr Udom.
He said the government should offer stronger measures to promote green finance by subsidising loans or providing low-interest rates for hotels that install energy-saving appliances, solar cells or cooling systems.
Mr Udom said more hotels are interested in using environment-friendly products, but it is almost impossible in terms of cost efficiency, especially for small and independent hotels, because of the high cost of those products.
