Connect with us

Tourism

Fitch expects Thai hotels’ RevPAR to drop by more than 60% in 2020

A slow recovery in the number of inbound tourists, amid a weakening global economy, will remain a key challenge in the next two to three years.

Pr News

Published

on

Thai hotels, as a major victim of the coronavirus pandemic, will continue to suffer from low RevPAR, which Fitch Ratings expects to recover in 2021-2022 from the trough in 2020 but to remain below the 2019 level.

Loading...

A slow recovery in the number of inbound tourists, amid a weakening global economy, will remain a key challenge in the next two to three years.

Cash preserving and cost saving have become survival factors in light of this tough operating environment.

Fitch expects Thai hotels’ average RevPAR to drop by more than 60% in 2020.

A sharp recovery is unlikely in hotel room occupancy (OCC) and average daily rate (ADR) as the country’s reopening to foreign tourists should be on a gradual basis.

We expect most hotel operators’ EBITDA to be negative in 2020, improving slowly in 2021-2022. The top-three listed hoteliers’ profit margins narrowed dramatically 1H20, despite efforts to scale down costs.

The hoteliers have indicated their ongoing capability to reduce monthly costs and expenses by 20%-30% from the base-2019 level, which would translate to a lower break-even OCC by about 10%-20%, varying by company.

A deterioration in earnings is likely to double financial leverage by end-2020.

Deleveraging to pre-pandemic levels should take at least three to four years, assuming no large capex spend.

Source: https://www.fitchratings.com/research/corporate-finance/coronavirus-thailand-hotels-07-10-2020

Siam News Network includes top references news sites, Job Board, Business Directory and Classifieds Portal

Tourism

Will Thailand’s plan for quarantine-free tourism set a global trend?

According to the Tourism Authority of Thailand, the quarantine-exemption measures implemented in Phuket will be extended to five other key tourism destinations – Krabi, Phang Nga, Surat Thani (Ko Samui), Chonburi (Pattaya) and Chiang Mai – from October 1.

Oxford Business Group

Published

on

As part of plans to stimulate a rebound in tourism, some countries have moved to waive compulsory quarantine for international travellers who have received a coronavirus vaccine.

Loading...
(more…)

Continue Reading

Tourism

TAT New York Office to host virtual Thai New Year celebration broadcast live from Chiang Mai

All are invited to participate in this one-night only celebration that will be broadcast live from Chiang Mai, featuring an hour-long programme offering something for all those who love Thailand’s traditional culture, its festivals, and Thai food.

Tourism Authority of Thailand

Published

on

The Tourism Authority of Thailand (TAT) New York Office is organising an online “Spring into Songkran Splendours” celebration to welcome in the traditional Thai New Year 2021.

Loading...
(more…)

Continue Reading

Tourism

Thai tourism officials welcome Miss Grand International 2020 contestants

After arriving in Bangkok on 28 February, all Miss Grand International 2020 contestants have spent two weeks in Alternative State Quarantine (ASQ) in Thailand as required under nationwide regulations to prevent and control the spread of COVID-19.

Tourism Authority of Thailand

Published

on

Thai tourism officials welcome Miss Grand International 2020 contestants

The Tourism Authority of Thailand (TAT) is pleased to welcome the organisers and all 63 contestants of the Miss Grand International 2020 beauty contest, following their completion of the 14-day mandatory quarantine in Thailand.

Loading...
(more…)

Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 14,079 other subscribers

Latest

Trending