i think they do ok because they keep building more of them (just not more roads to get to them)... I've worked in tourism in Thailand for nearly 15 years and from what i have seen they will stop building new hotels once 50% of the ones that are already there are for sale because they can't get enough customers.
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That's still sick though, although it also is to blame on the tourists i guess. All those who prefer to stay in hotels, add to this problem.