Hoteliers in Pattaya expect the occupancy rates in April to miss their mark even after thousands swarmed to the resort town to celebrate Songkran.
The Thai Hotels Association said Pattaya's average occupancy rate in April would likely top out at 60%, lower than the THA's projection of 70%.
Despite the festive atmosphere in the city, many tourists did not opt to stay overnight in hotels.
Pattaya's extended Songkran celebration ended on April 19 after 10 days.
Sanpech Supabowornsthian, president of the THA Eastern Chapter, said a deduction for individual taxpayers who used hotel and restaurant services during Songkran slightly helped hoteliers in Pattaya.
Because of the economic situation, however, the drop in foreign travellers, especially Russians, is expected to decline further.
Despite the lacklustre April numbers, the THA does expect a slight bump in May thanks to bookings from giant direct-sale companies in China and India, which plan to bring their staff to visit Pattaya.
Tour groups from China have already confirmed they will bring 18,000 people to Thailand and use at least 9,000 hotel rooms. They are due to arrive in late May.
Mr Sanpech said they will help boost the occupancy rate to between 70% and 75% next month.
But while the significant growth of Chinese tourists over the past several years is good news for the industry, they cannot offset the decline in European visitors, particularly Russians, who exhibited higher rates of spending.
Travel agents who serve the Chinese tourist market, for example, have pressured hoteliers to drop room rates, with many operators complying out of necessity.
The average room rate for Chinese tour groups at two- to three-star hotels is 800 baht per room per night; 1,200 baht for four-star hotels; 1,800-2,200 baht for locally owned five-star hotels; and 2,200-2,500 baht for five-star hotels managed by international chains.
While all segments of the tourism industry have attempted to attract more high-end Chinese travellers, such arrivals to Pattaya remain small. The THA estimates this segment of travellers accounts for 10% of total Chinese arrivals to Pattaya, Mr Sanpech said.
On the transport front, the joint civil-military U-tapao airport said it will receive 10 flights per day and hopes China Southern Airlines will start running charter flights out of the facility.
Currently, only one charter flight from Russia is scheduled per week.