Transforming Tourism Crisis into Opportunity: How Thai Hotels Must Adapt

When uncertainty becomes the New Normal for the tourism industry, how can risk assessment and the development of "sustainability policy" help hotels survive the crisis?

2025 is a year when the Thai tourism industry faces challenges from multiple fronts. Border conflicts, a global economy that has yet to recover, and unexpected events such as earthquakes and floods all impact the confidence of tourists worldwide.

A report from KASIKORN Research Center predicts that for the entire year 2025, the number of foreign tourists visiting Thailand may contract by 2.8%, or reach 34.5 million people, which would result in a loss of up to 1.62 trillion baht in tourism revenue from foreign tourists.

These factors indicate that hotels can no longer rely solely on 'tourist volume' but must build a strong foundation through strategies that emphasize risk assessment and sustainability policies to build 'confidence' among tourists, investors, and supply chain partners.

What is Risk Assessment and how is it related to sustainability?

Risk Assessment is the process of identifying, analyzing, and prioritizing events or situations that may impact a business, in terms of operations, revenue, credibility, or relationships with stakeholders. This includes environmental risks, natural disasters, political instability, new laws, or even changing consumer behavior.

For the Thai hotel and tourism business in 2025, increasingly evident risks include:

• Border conflicts, such as the situation on the Thai-Cambodian border, which affects the image and confidence of tourists.
• Unexpected natural disasters, such as earthquakes in mid-year or flood situations, which can immediately impact safety and travel.
• A global economy that has yet to recover, leading to more careful consideration of long-distance travel or accommodation choices.
• Pressure from foreign laws, such as the EU's CSRD, which affects Thai hotels as service providers in the supply chain.
• Changing tourist behavior, especially Gen Z, who increasingly choose hotels that are socially and environmentally responsible.

"Risk assessment" is therefore a crucial starting point for sustainability planning, as it helps hotels identify vulnerabilities, make proactive decisions, and create effective response plans.

So, how should hotels start today? When 'sustainability and risk assessment' become business conditions that influence the decisions of tourists, investors, and supply chain stakeholders.

5 Steps to Sustainability for Hotels

1. Foster Shared Understanding within the Team

• Start with management and employees at all levels. They must understand that “sustainability” is not just CSR or tree-planting activities, but encompasses environmental, social, cultural, and long-term economic aspects.
• Encourage participation and highlight business benefits, such as long-term cost reduction, increased credibility, and expanded customer base. Failure to act may result in lost business opportunities, such as being delisted from OTAs or failing ESG assessments from corporate clients.

2. Assess the Hotel's Current Status

• Review existing sustainability policies or practices and assess risks in areas such as waste management, energy consumption, local employment, disaster preparedness, etc.
• Study international sustainability standards or certifications such as GSTC Industry Criteria or national standards such as Green Hotel Plus to identify “gaps” that need further development to achieve sustainability goals.

3. Establish Clear Systems and Policies

• Develop comprehensive environmental, social, and governance (ESG) policies, covering aspects such as water and energy management, human rights, labor, equality, promotion of local culture and community engagement, and business risk assessment.
• Set systematic goals, key performance indicators (KPIs), and assign responsibilities (PDCA) that can be tracked, measured, and audited.

4. Implement and Communicate with Stakeholders

• Begin practical implementation, such as switching to LED lighting, eliminating single-use plastics, training employees on sustainability, and hiring from local communities.
• Communicate and collaborate transparently with suppliers, communities, and tourists, including how to handle unexpected situations, to build confidence among tourists.

5. Seek Certification and Clearly State Your Stance to Guests

• Apply for certification from reputable organizations, such as GSTC (an internationally recognized standard) or Green Hotel Plus (a national standard aligned with GSTC).
• Use certification symbols correctly in sales and marketing channels (OTAs, websites, brochures) to increase credibility and access new markets that prioritize sustainability.

If your hotel is looking for a systematic approach to sustainability goals, the Carbonwize team is happy to provide advice and tools for assessing your hotel's readiness with the Sustainwize platform. This will enable your hotel to set goals, track, and measure sustainability performance, and confidently and efficiently move towards obtaining sustainability certifications like GSTC.

Contact us today! And try the platform free for 3 months

Email: info@sustainwize.io

Sources: KASIKORN Research Center, The Nation