Thailand sees a rebound in hotel occupancy

Thursday, September 8, 2022

It is according to an independent survey, a rebound in international tourist arrivals into Thailand is pushing up the hotel occupancy rate of the nation from a record low during the pandemic.

The survey also says that the average room occupancy at Thai hotels was 48% in August, up from 46% a month earlier.

This survey was conducted as a joint survey of 106 hotels by the Bank of Thailand and the Thai Hotels Association.

That helped lift the average employment rate at these hotels to 75% from 71% in July, the survey, held during Aug. 8-24, showed.

By year end, Thailand is hoping to improve its tourism revenue to 600 billion-700 billion baht ($16 billion-$19 billion), aiming to attract high-spending groups like Indian wedding parties and honeymooners.

Popular for its white-sand beaches and nightlife, Thailand is looking forward to cash in the “pent-up demand” from the multi-billion dollar Indian wedding industry, said Siripakorn Cheawsamoot, the Tourism Authority of Thailand deputy governor.

Cheawsamoot said that as per data from the last two years, many Indian couples got married, but they couldn’t find proper honeymoon sites, or they postponed their marriage plans since they wanted to have their reception abroad including Thailand.

The hotels in Thailand, like most tourism-reliant countries, is benefiting from a rebound in global travel demand with authorities scrapping all pandemic-era restrictions that kept visitors out for almost two years.

A government-funded air travel and hotel subsidy program for residents has also helped hotels log higher occupancy, the central bank said.

The travel and tourism revival is seen as key to Thailand’s economic recovery as the sector accounts for 12% of the gross domestic product and 20% of total employment, according to BOT. Governor Sethaput Suthiwartnarueput expects foreign tourist arrivals this year to exceed 8 million, helping the economy return to pre-COVID levels by the end of this year.

Some key points from the survey:

While hotel incomes have started to improve, overall revenue remains well below pre-Covid levels

Hotels reporting income of more than 50% of pre-pandemic levels are mostly 4-5 star rated properties

Occupancy rate in September seen at around 40%

Hotels are still concerned about sustaining demand amid rising inflation as about 60% operators worry about falling purchasing power and lower-than-expected tourist arrivals

A labor shortage and disruption to economic activities from potential new waves of outbreak are also among key concerns.

Inputs: Bloomberg

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