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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.

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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.

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

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Acclaimed MICHELIN Guide Thailand gets 5-year extension from 2022-2026

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edd43d39 acclaimed michelin guide thailand gets 5 year extension from 2022 2026

Bangkok, 2 December, 2021 – The Ministry of Tourism and Sports and the Tourism Authority of Thailand (TAT) are pleased to announce that the success of The MICHELIN Guide Thailand over the past five years, since its launch in 2017, has resulted in the project being extended for another five years from 2022 to 2026 guaranteeing continued promotion of gastronomy tourism in Thailand to the highest international level.

Mr. Yuthasak Supasorn, TAT Governor, said, “The MICHELIN Guide Thailand in its four editions so far has been received tremendously well, and has been instrumental in bringing Thailand’s world-class culinary scene to the world. The next five editions to come under TAT’s expanded partnership with The MICHELIN Guide will aim to build on that success and promises a number of new elements. This will see its search extended to three more provinces, including one in the Northeast, and the introduction of a new award category – the MICHELIN Guide Thailand Service Award presented by TAT will recognise outstanding service personnel in the culinary and hospitality industries.

“At the same time, The MICHELIN Guide Thailand will play an important role in helping drive the government’s Creative Economy policy under the Bio-Circular-Green or BCG Economic Model. It will do so by enhancing the image of Thailand globally as a leading tourism destination through the promotion of Gastronomy Tourism, and in a sustainable development manner.”

Mr. Manuel Montana, President of Michelin East Asia and Australia, said, “The extended partnership will allow us to provide further support and contributions to Thailand’s gastronomy and tourism sectors – a much-needed morale booster for local entrepreneurs, especially during and after the pandemic. With the MICHELIN Guide’s active presence through both traditional and digital channels on a global scale, we will continue to enhance the exposure of Thailand as a world-class culinary destination, as well as help amplify the rebound of Thai tourism after the Covid-19 crisis. Additionally, in line with the Thai government’s policies around the Bio, Circular and Green economy, The MICHELIN Guide’s efforts to raise awareness and promote sustainability in the culinary and hospitality sectors, will benefit not only the country’s economy and its people, but also the planet as a whole.”

The partnership between TAT and The MICHELIN Guide began in 2017 with the launch of The MICHELIN Guide Bangkok 2018, the aim being to help food lovers explore the Thai culinary scene and to raise the profile of Thai restaurants while boosting the economy at the same time.

Right from the start, it was planned that other destinations around Thailand would be added to subsequent editions of the MICHELIN Guide. This was seen with the second edition – The MICHELIN Guide Bangkok, Phuket and Phang-Nga 2019 – extending coverage from the capital city to its surrounding provinces of Nonthaburi, Pathum Thani, Nakhon Pathom, Samut Sakhon, and Samut Prakan and the two Southern provinces.

The following year, the further-expanded The MICHELIN Guide Bangkok, Chiang Mai, Phuket & Phang-Nga 2020 was released with the addition of the renowned Northern city of Chiang Mai and its thriving culinary scene.

Still more expansion came with the arrival of The MICHELIN Guide Thailand 2021, the current edition, but rather than being the addition of more destinations it was in the form of two new awards and a new distinction. These were the MICHELIN Guide Young Chef Award – for a young starred chef with exceptional talent and potential, the MICHELIN Guide Service Award  – for a restaurant personality showing a genuine passion in making customers feel special and ensuring they enjoy a wonderful dining experience, and the MICHELIN Green Star – recognition given to those restaurants that embody and embrace sustainability in their day-to-day operations; such as, recycling, food waste reduction, and promotion of local ingredient sourcing.

Representing the truly remarkable kaleidoscope of culinary experiences on offer in Thailand, The MICHELIN Guide Thailand 2021 lists in total 299 restaurants and eateries throughout the featured destinations. These include 6 two-star and 22 one-star establishments, 106 Bib Gourmand establishments, and 165 Plate rated establishments.

The fifth edition of The MICHELIN Guide Thailand, due for release at the end of 2021, will see the addition of yet another new destination, this time Phra Nakhon Si Ayutthaya. A former capital of Thailand (when it was known as Siam) and today a UNESCO World Heritage Site, Ayutthaya’s dining scene is an impressive fusion of old and new, and the city will be showcased as an outstanding gastronomy tourism destination for all ages.

Research into Thailand’s inclusion of gastronomy tourism as one of the key elements of its overall tourism promotion and marketing has resulted in some impressive findings. Two papers – one by Kenetixs Consulting on Gastronomy Tourism in Thailand and the other an assessment by Ernst & Young of The MICHELIN Guide Thailand from 2017-2020 – similarly concluded that economic value had been created for the country on several fronts.

This included an increase in food spending by foreign tourists of double in 2019 to 842.4 million Baht, the creation of 4,800 additional jobs in the food-related sector, a 33% increase in food-related events; such as, dinner with chefs from MICHELIN-starred restaurants, and a 137% increase in street food and fine-dining MICHELIN Guide’s awarded establishments. Also seen was increased development and enhancement in the food-related sector towards the maintaining of high service standards, the attraction of more foreign chefs to come and work in Thailand, and encouragement of investment in fine-dining in Thailand.

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The Bachelor Japan Season 4 showcases Thailand

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Bangkok, 2 December, 2021 – The Tourism Authority of Thailand (TAT) is pleased to report that Thailand features as the main location in the Japanese reality TV show ‘The Bachelor Japan Season 4’, of which the first episode aired on 25 November, 2021.

In cooperation with the TAT Tokyo Office, a film crew from Amazon Prime Japan and YD Creation Japan comprising 65 actors, production staff, technicians and others travelled to Thailand to shoot for the show in the spectacular Southern provinces of Phuket, Phang-Nga, and Krabi between April and June 2021.

A total of six out of the 10 60-minute episodes of ‘The Bachelor Japan Season 4’ were filmed in Thailand.

 Aside from the valuable promotional exposure the destination will receive in Japan, a key source market for visitors from the Asian region, the foreign production also generated much-needed income and employment opportunities in the local tourism and film-related sectors of the three chosen locations.

Phuket, Phang-Nga’ and Krabi were among the first destinations in Thailand to reopen to tourism under the Sandbox programme, and the TAT Tokyo Office has capitalised on the interest of foreign filmmaking to promote the world-class tourist appeal and public health safety standards of these destinations.

Mr. Yuthasak Supasorn, TAT Governor, said “Popular TV shows like ‘The Bachelor’ are an effective way to deliver promotional messages directly to international markets, in this case Japan, which is among the 63 countries and territories from which fully vaccinated visitors can enter Thailand through the Exemption from Quarantine (TEST & GO) programme. With Thailand featuring so significantly in ‘The Bachelor Japan Season 4’, this helps us to promote travel to Thailand now that entry rules are being relaxed and tourists are once again welcomed.”

Fully vaccinated visitors from every country around the world can also visit Thailand via the Living in the “Blue Zone” Sandbox destinations programme. Meanwhile, partially or unvaccinated visitors are also much welcomed via the Happy Quarantine programme. However, to prevent and control the spread of the new Omicron COVID-19 variant, Thailand currently imposes travel restrictions on arrivals from Africa.

Photo Credit: Instagram: @BachelorJapan外部リンク, @bachelorjap外部リンク

The post The Bachelor Japan Season 4 showcases Thailand appeared first on TAT Newsroom.

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