Over the three-day period from October 4 to 6, severe flooding in Chiang Mai dealt a significant blow to the province’s tourism sector, with hotel occupancy rates plummeting by 30%. The unprecedented rise in water levels, primarily from the swelling Ping River, resulted in substantial disruptions, affecting 1,500-2,000 hotel rooms in the region. As floodwaters swept through key areas, including Changklan Road and riverside properties, hoteliers and local businesses scrambled to cope with the damages.
While the situation has gradually improved since Monday, the flooding left a notable impact on both local tourism and hotel operators. According to La-iad Bungsrithong, board advisor for the Thai Hotels Association (THA), many hotels in the worst-hit areas have begun their cleanup efforts as floodwaters started receding. However, it is expected that some properties, especially those located near the riverbank, may take up to two months to fully recover from the damage caused by the floods.
Over the weekend, the flooding situation escalated quickly, with the Ping River overflowing into several central areas of Chiang Mai. This led to flooding along Changklan Road, one of the city’s main tourist arteries lined with high-end hotels, restaurants, and shops. Many hotels in this area were forced to evacuate guests, with up to seven five-star hotels on Changklan Road temporarily closing their doors and relocating visitors to safer accommodations in unaffected parts of the province.
While properties along the riverbank bore the brunt of the damage, other tourist hubs such as Nimmanhaemin Road and the old town remained largely unscathed. Approximately 2,000 rooms on Nimmanhaemin Road and 1,500 rooms in the old town area continued operating as normal, shielded from the flooding. However, indirect impacts were still felt in these areas, as blocked transportation routes in the city center created significant inconvenience for both tourists and locals trying to navigate through flooded streets.
For many small hotels located in less-affected parts of the city, business still took a hit. The overall infrastructure disruption and the cancellations by domestic tourists, who make up a large part of Chiang Mai’s hotel bookings, dampened occupancy levels across the city.
The floods couldn’t have come at a worse time for Chiang Mai’s hotel industry, which had been enjoying a period of high occupancy rates in the lead-up to the disaster. According to Mrs. La-iad, hotels in Chiang Mai had posted strong occupancy rates of up to 75% during the first week of October, largely boosted by China’s Golden Week holiday. This annual holiday brings in thousands of Chinese tourists, one of Chiang Mai’s largest international markets, bolstering local businesses and hotel revenues.
Unfortunately, the onset of flooding saw an abrupt 30% drop in occupancy rates as transportation within the province became difficult. Domestic tourists, who were primarily affected by the transportation disruptions, canceled nearly all of their bookings, dealing a further blow to an industry already working to recover from the broader challenges of the COVID-19 pandemic and global economic uncertainties.
While international visitors, particularly those who had pre-booked flights and accommodations, largely stuck to their travel plans, the local guest market saw a near-total collapse. Hotels on the city’s outskirts were forced to close temporarily as a result of the flooding, while others, particularly those located in the central city and near the Ping River, faced widespread damage to their facilities.
As cleanup operations commenced, hotel operators have begun the long road to recovery. Mrs. La-iad noted that while most five-star hotels impacted by the floods are insured and will receive compensation for property damage and revenue losses, the recovery period could extend up to two months for some riverside properties. However, smaller, independently owned hotels without the same level of insurance coverage may face greater financial challenges as they work to restore their properties.
Many businesses have also faced logistical hurdles in their recovery efforts due to road closures and interruptions to the supply chain. The flooding disrupted local services, cutting off key transportation routes and slowing down essential deliveries, which has complicated the ability of hotels and other businesses to return to full operational capacity.
Despite the severe short-term impacts, Mrs. La-iad remains optimistic about the province’s ability to bounce back. She expressed confidence that the tourism situation in Chiang Mai would stabilize and return to normal within 5-7 days, as the province is expected to attract more visitors during the upcoming cool season. As one of Thailand’s most popular travel destinations, particularly for domestic tourists during the winter months, Chiang Mai is poised for a strong recovery once the immediate impacts of the floods subside.
Despite the temporary disruption, Mrs. La-iad emphasized that there is no need for hotels to resort to promotional discounts or aggressive pricing strategies to lure back local guests. She stressed that the flooding incident was short-lived and, with the proper rehabilitation efforts, tourism would return naturally as the situation normalizes.
“The government’s role is crucial in focusing on rehabilitating the public sector and ensuring that local communities can recover swiftly. If we can restore public services and local infrastructure, the tourism industry will follow suit,” said Mrs. La-iad. She underscored the importance of speeding up the recovery process for local businesses and public utilities, ensuring that tourists can once again move freely and enjoy the city’s attractions without hindrance.
In particular, she urged the government to invest in repairing and improving the province’s flood management systems and public infrastructure to mitigate the risk of future flooding events, which are becoming increasingly frequent due to climate change and urban development pressures.
One bright spot in the aftermath of the floods has been the role that insurance has played in cushioning the blow for larger hotels, particularly high-end properties in flood-prone areas. According to Mrs. La-iad, most of Chiang Mai’s five-star hotels are covered by comprehensive insurance policies that will compensate for both physical damages and losses incurred from the temporary closures.
This insurance coverage is vital for helping these hotels get back on their feet quickly, allowing them to begin repairs and reopen in time for the high tourist season. However, smaller hotels and guesthouses that may not have the same financial protection could struggle more with the costs of repairs and lost revenue, raising concerns about the longer-term impacts on Chiang Mai’s broader hospitality sector.
Despite the setbacks caused by the floods, industry experts are confident that Chiang Mai’s tourism sector will rebound strongly, particularly as the province enters its peak travel season. With its cool climate, rich cultural heritage, and stunning natural scenery, Chiang Mai continues to be a major draw for both local and international travelers.
Mrs. La-iad reiterated her optimism, noting that the province’s appeal as a tourist destination remains intact. “Chiang Mai is resilient. We’ve faced challenges before, and we’ve always come back stronger,” she said. “The upcoming cool season is a favorite among domestic travelers, and with the right recovery efforts in place, we expect a surge in bookings once again.”
Looking ahead, Chiang Mai’s hotel industry is preparing for an influx of tourists as conditions improve. The high season, which runs from November through February, is expected to bring a fresh wave of visitors, particularly from Thailand’s domestic market, which traditionally favors Chiang Mai during the winter months. With flights operating normally from Chiang Mai International Airport and most of the province’s key tourist areas unaffected by the floods, the stage is set for a strong recovery.
