Kasikorn Research Centre estimates Thailand’s hotel sector will generate 560 to 574 billion THB this year in gross revenue, an increase of 3.7% to 5.5% year-on-year, despite growing competition. Growth in 2016 came in at 6%. The bank’s think-tank said competition in the hotel business continued to heighten in 2016, with more hotels in the pipeline. It said there are more newcomers who are seeking opportunities to cash in on Thailand’s success in tourism, there are also large-scale conglomerates in the property sector making plans, as well.
“This group will be pivotal to hotel investments during 2017,” the bank said, predicting more new hotels will open and this will intensify competition. Occupancy rates and room rate hikes will therefore be under pressure in 2017. For three-star or lower hotels, the competition is already fierce, since they all seek to attract mid-level tourists.
To aggravate competition in the hotel market, certain conglomerates in the energy and retail businesses – as well as others – are also
investing in new hotels, it said. “Tourism in 2017 is expected to continue its momentum for both Thai and foreign visitors. The recovery of events, meetings, seminars and weddings could bring in good earnings for venues.” – ttrweekly.com