According to CBRE latest Quarterly highlights report, political unrest is taking a toll on hotels revenue, especially in Bangkok. But Phuket as well as other tourist destinations were less affected than Bangkok by the political situation.
• The Average Daily Rate (ADR) of all grades of hotels in Bangkok was around THB 3,200 with no growth Y-o-Y.
• Revenue per Available Room (RevPAR) of all grades of hotels in Bangkok was THB 1,800 in Q1 2014, dropping significantly by 30% Y-o-Y.
• CBRE forecasts that the supply of hotel rooms in Bangkok will increase 14% by 2017.
• Tourist arrivals for the whole country decreased by 3% Y-o-Y to 6.6 million.
China was still the biggest feeder market despite decreasing by 14% Y-o- Y to 0.97 million arrivals in Q1 2014, accounting for 14.7% share of total international tourist arrivals.
Bangkok goes down, but Phuket goes up
The number of international tourist arrivals to Thailand in Q1 2014 decreased slightly by 3.4% Y-o-Y to 6,598,240 arrivals. The number of international passengers disembarking at all AOT-managed airports in Bangkok decreased more, by 11.1% Y-o-Y to 5,318,064 but increased by 6.9% Y-o-Y in Phuket.
This means that the hotels in Phuket as well as other tourist destinations were less affected than Bangkok by the political situation.
The decrease in arrival numbers to Bangkok resulted in a sharp drop in occupancy rates. In Q1 though it was the high season, Bangkok’s hotels of all grades reported occupancy rates of around 55% in Q1 2014 compared to 80% in the same period last year and this number was the lowest recorded over the past five years.
Hotels near the anti-government demonstration sites reported occupancy rates even lower than 50%. Advanced room bookings were slower since travellers were still wary of the situation and MICE (Meetings, Incentives, Conferences, and exhibitions) events were also cancelled.
Despite the decline in occupancy rates of hotels in Bangkok, we saw a slight increase in the Average Daily Rate (ADR) by 0.6% Y-o-Y.
But, this increase was largely due to Thai Baht depreciation by 10% from Q1 last year. RevPAR dropped significantly by 30% Y-o-Y.
In Q1 last year Chinese arrivals to Thailand grew by 100.1% Y-o-Y but this quarter Chinese arrivals posted a decline of 13.8% Y-o-Y.
We expect another 5,000 hotel keys to be completed by 2017 and this will further increase supply by 14%, which is positive for the industry. We have seen a slowdown in new hotels opening and new hotel construction starts.
Source : http://www.cbre.co.th/en/ResearchCentre/Research/Bangkok-Luxury-Hotel-MarketView-Q1-2014
Thai Beaches Pricier Than European Resorts
A Thai holiday pricing has increased by about 30 percent in U.S. dollar terms and 40 percent euros over the last five years due to the appreciation of the baht and inflation
UNESCO adds Bangkok and Sukhothai to Creative Cities Network
UNESCO announced on 30 October that Bangkok was designated as a ‘Creative City of Design’ and Sukhothai as a ‘Creative City of Crafts and Folk Art’, joining the UNESCO Creative Cities Network
The United Nations Educational, Scientific and Cultural Organisation (UNESCO) has designated Bangkok and Sukhothai among 66 new ‘Creative Cities, thus bringing the total number of UNESCO Creative Cities in Thailand to four.(more…)
How to enjoy travelling in Bangkok
The Tourism Authority of Thailand (TAT) is offering international visitors travel tips to help ensure a more enjoyable and pleasant stay, especially when arriving and staying in Bangkok.
Thailand among top five countries for salary hikes
Thailand is among the top five economies in the world to see real salary increases and is likely to see...
Thailand Ecommerce Market: Shooting For Success
At present, the Thai ecommerce market is valued at USD 3.5 billion. According to a Google Temasek study, Thailand’s e-commerce...
Aspire Set to Become First SME Neobank in Southeast Asia with US$32.5 Million Raise
The recent financing has been led by Mass-Mutual Ventures Southeast Asia with participation from Silicon Valley’s Arc Labs and existing...