Hotels to expand investments

BANGKOK  Kasikorn Research Centre estimates Thailand’s hotel segment will grow 4.7% to 6.0%, this year, creating revenue of THB537,000 to THB544,000 million.

The bank think-tank unit noted major hotel operators would expand their business to secondary destinations across the country.

“However, hotel groups in the main destinations will face challenges  to increase occupancy and room rates due as tourists spread out to secondary cities.”

Meanwhile, tourists visiting secondary provinces could ultimately reduce supply at popular resorts, the bank added.

“The development of special economic zones along the border with neighbouring countries will open opportunities for hotel investment.”

This year, high-end hotels will maintain a competitive position as MICE business improves and food and beverage sales surge.

The encroaching expansion of major hotel business will prompt medium and budget hotels in same areas to be more aggressive on pricing, it added.

Hotel expansion will generate THB537,000 to THB544,000 million in revenue growing 4.7% to 6.0% from last year, with revenue circulated at THB513,000 million.

It suggested that reducing online travel agency (OTA) dependencies is a challenge for hotel operators in the near future. OTAs charge considerable more in commissions that their traditional counterparts.

Kasikorn Research Centre is a subsidiary company of Kasikorn Bank, which conducts tourism and business research mainly on Thailand’s economy including tourism with reliable recommendations and indicators on business prospects.