Transcript of the above video: 

As the thumbnail and the title of this video suggests, we are discussing the fact that Thailand's tourism sector is currently "under cost pressure". I thought of making this video after reading a recent article from the Bangkok Post, bangkokpost.com, the article is titled: Tourism under cost pressure. Quoting directly: "Surging energy prices are disrupting tourism in Phuket, Pattaya and Ayutthaya, raising costs and weakening bookings ahead of the peak travel period of Songkran. Phuket tourism operators report steep cost increases as fuel prices climb, affecting hotels, public transport, including taxis, buses and tour coaches, as well as marine services such as tour boats and speed boats which are central to the province's tourism system. Thanete Tantipiriyakij, President of the Phuket Tourist Association, indicated that energy now plays a decisive role across the sector's cost structure." Quoting further: "Transport and hotels are directly exposed. When energy prices rise, the entire system absorbs the shock," he stated. Mr. Thanete cited a study by Prince of Songkla University, which found energy accounts for 39-48% of transport costs and about 24% of hotel operating expenses. Even restaurants, though less energy-intensive, face indirect pressure through higher logistics and ingredient prices, pushing up overall visitor spending."

Yeah, and I can say from some level of experience. As I have discussed in other videos, my better half and I set up a restaurant here in downtown Bangkok; it is called Pancake Palace. As the name implies, breakfast anytime. It's American style diner food as well, and we do have an English breakfast for those who are interested in that. But it's not just breakfast anytime, it is American Diner style food. We're happy to see you there in the evening. We do have hamburgers, cheeseburgers, we've got chilli dogs, we've got chilli bowls, we've got grilled cheese, we have got Coke in glass bottles; we have now got tacos. So if you're interested in American Diner style food including breakfast anytime, check us out at Pancake Palace; links are in the description below. 

The point I was getting at though with even bringing up the plug is yeah, we are feeling it pinch a little bit in terms of just even slight cost increases, just in the couple of weeks. Quoting further: "Under modelling scenarios, a 10% rise in energy prices would increase hotel costs by about 5% and transport by more than 7%. In a severe scenario, a 50% increase could lift hotel costs by 25.7% and transport by 38.5%, intensifying pressure on operators. Mr. Thanete warned these increases would inevitably be passed on. “Room rates, food prices and tour programmes, both land and marine, as well as travel costs, will adjust. This risks undermining Thailand's competitiveness, particularly for SMEs that cannot absorb rising costs," he noted." Yeah, so as the thumbnail suggests, just the song by David Bowie and Queen, Under Pressure, yeah, I think that's a pretty accurate soundtrack for the moment here in Thailand. 

Thailand's tourism sector is probably going to be affected by rising energy costs. Now one thing that I think folks can be someone optimistic about is it looks to me like folks here in Thailand, officials and otherwise, have figured out - at least for the moment - some way to stabilize Thailand's supply chain with regard to energy. So there have been recent news reports that ships are leaving the Strait of Hormuz for Thailand that are loaded with oil, and Thailand is also making arrangements with the Russians to try to figure out how to get a supply chain going there for some oil. I expect those things are going to come off and they are going to operate in a positive direction, quite frankly because Thailand's diplomatic apparatus is quite astute and they are very good at what they do, and they are very good at keeping robust relationships with various sovereign entities around the world, keeping up those relationships for just such a scenario where she finds herself in a situation where she has got to make some deals in order to make things operational here in Thailand. So I think that's good news. I think on the one side of this, yes, the tourism sector is under pressure, but on the other side of it, I think there's light at the end of this tunnel, and I think the term "this too shall pass" may probably be accurate in the current circumstances. 

That being said, it certainly remains to be seen, and we will certainly be keeping folks updated on this channel as the situation evolves.