Thailand recovers from “the doom of last year”
Thailand appears to have turned a corner since “the doom of last year”, TTG Asia reports. A tumultuous 2014 tempered the 2015 outlook for the country’s hospitality sector, but now industry players are hopeful for a “stable” year ahead. However, performance this year is unlikely to reach the outstanding levels achieved in 2013.
While the “shine” is off, Thailand’s tourism industry is definitely not broken, experts insisted at the annual Thailand Tourism Forum in Bangkok yesterday.
“The doom of last year was a lot of empty rooms,” said Jesper Palmqvist, STR Global’s Asia-Pacific area director.
Occupancy in Thailand fell from 73% in 2013 to 65% last year, mostly driven by Bangkok, which saw a year-on-year decline of 16.2 percentage points.
But Thailand’s ADR grew slightly, with half of Bangkok’s hotels recording positive ADR growth in 2014 year-on-year. “Hotels did not dim down on rates last year […] pressure was held,” Palmqvist explained.
Recovery in the Thai capital’s hotel market is well underway. Occupancy in Bangkok for December 2014 reached the highest level recorded by STR Global since 2000, at 76.4%, and when comparing quarters, Q4 occupancy hit 77.5% – the best since 2006.
[pictured: Riverside terrace, Mandarin Oriental Bangkok; photo courtesy Mandarin Oriental]