Hat Yai Hotels Face Slow Bookings a Year After the Floods. Flood Risk Has Become a Demand Problem

Hat Yai hotels are heading into their busiest months with thin order books. Advance bookings for November and December are well below the 30–50% hotels normally hold by this time, Sitthipong Sitthiphataraprabha, president of the Hat Yai Songkhla Hotels Association, told the Bangkok Post. Malaysian and Singaporean visitors remember last November’s floods and are going elsewhere. For owners in Hat Yai, and in any market hit by a disaster, this is the second bill: lost demand a year later, long after the water has gone.

Key facts

Why guests are staying away

Last November a monsoon system dropped more than 1,000 mm of rain on Hat Yai. Tens of thousands of people were stranded. Hat Yai is low-lying, and water drains through the city towards Songkhla Lake.

A year later, guests have not forgotten. Hotels have offered promotions and flexible booking terms, and local authorities have repaired major canals and increased flood monitoring. Operators say that has not been enough to restore confidence. Heavy rain and flooding in northern Malaysia in recent weeks has added to the caution among Malaysians, one of Hat Yai’s main markets.

October was weak except during the Vegetarian Festival in the middle of the month. The association expected average occupancy of about 60% for the month, well below the same period last year.

Small hotels are the first casualties

Most Hat Yai hotels are open, the association says, but some small operators have closed since the floods because they ran out of capital. That matches the national picture: Thailand’s hotel closures rose 42% in the first nine months of 2026, with small hotels hit first (see our report on Thailand hotel closures). Lower-star hotels across Thailand are also facing weaker ASEAN demand; see Thailand’s high season split by star rating.

Operators are planning for the next flood

The association, which represents about 120 properties in Songkhla, is preparing evacuation plans for guests, including shelters and rooms at hotels outside Hat Yai in less vulnerable areas. Its president is asking the government for long-term investment in water management, arguing that the current system was designed on water levels recorded more than a decade ago.

Our view: evacuation plans help, but they are not a sales message on their own. Guests book when they believe the city is safer, so visible flood works and clear public information will do more for occupancy than discounts.

What it means for you

1. Owners in Hat Yai

Plan for a weaker high season. Cut fixed costs where you can, and talk to lenders early if cash is tight. The hotels that closed ran out of capital, not guests alone.

2. Sales and marketing teams

Tell guests what has changed: flood monitoring, canal repairs and your own evacuation plan. Malaysian and Singaporean travel agents need facts to reassure their clients.

3. Owners in other flood-exposed markets

Hat Yai shows the demand cost of a disaster can last a year or more. Include it in your risk planning and insurance, alongside repair costs. Check whether your policy covers business interruption.

4. Investors

Climate risk now shows up in occupancy, not just in damage. Price flood exposure into hotel values in low-lying cities.

FAQ

Why are Hat Yai hotel bookings down?

Visitors, mainly from Malaysia and Singapore, are wary after the November 2025 floods, and northern Malaysia has had flooding in recent weeks.

How full are Hat Yai hotels?

The hotel association expected average occupancy of about 60% for October 2026, below last year.

What are Hat Yai hotels doing about flood risk?

The Hat Yai Songkhla Hotels Association is preparing guest evacuation plans and asking the government to upgrade water management.

Have any Hat Yai hotels closed?

Yes. Some small operators have closed since last year’s floods because they lacked capital, the association says.