Thai tourism rebounds as hotel bookings beat pre-Covid level: report
Hotel bookings in Thailand are expected to exceed pre-Covid levels this year as domestic tourism surges, according to Krungthai Compass, the research unit of Krungthai Bank.
Foreign arrivals in the first half this year reached 17.5 million, down 12% on the pre-pandemic period in 2019, the unit reported on Tuesday. But Thais domestic travellers rose to 136.2 million, up 21% from the pre-Covid level.
This contributed to a 72.6% increase in hotel occupancy rate in all regions across Thailand. The average daily rate (ADR) was 1,920 baht per room, up 9% compared to 2019.
The ADR in the South of Thailand recovered strongly in the first half to 2,486 baht per room, thanks to the density of upscale hotels and resorts in the region.
Occupancy rates are expected to remain at 70.5% this year before rising to 71.9% in 2025.
Though foreign arrivals are projected at 36.5 million this year, lower than the 39.9 million in 2019, Thai travellers are expected to rise to 271 million, up 19% on the pre-pandemic level.
Krungthai Compass expects hotel revenue this year to reach around 900 billion baht, a rise of 13.6% year on year and up 102% compared to the pre-pandemic level.
Of this, 500 billion baht would come from foreign travellers and 400 billion baht from Thai travellers.
Hotel revenue is expected to rise next year to 960 billion baht, up 108% on pre-pandemic times as Thai and foreign travellers increase.
Thai travellers’ per-trip accommodation expenses are expected to increase from an average 3,500 baht this year to 3,800 baht next year.
Room prices and revenue for four- to five-star hotels are likely to recover sooner than cheaper accommodation, matching foreign tourists’ accommodation preferences.
Hotels graded three-star and below will face intense competition due to oversupply, a decline in backpackers and group tours, and home-sharing business like Airbnb, the report said.
Krungthai Compass advised hotel operators to offer unique travel experiences, target alternatives to the Chinese market where an economic slowdown has impacted travel, and use technology to reduce operation costs.
Total Thai hotel trading was 5.67 billion baht in the first six months but is expected to reach 15 billion baht by the end of this year, up 24% compared to pre-Covid business.
Hotels being purchased for renovation are mostly located in Bangkok, Chiang Mai, Phuket and Surat Thani’s Koh Samui Island.
Meanwhile, of the 53 billion baht that Thai hotel operators invested abroad between 2022 and the first quarter of 2024, 24 billion baht was invested in Mauritius and 21 billion baht in the United Arab Emirates.
The report said Thai hotel operators are likely to expand foreign investment to Japan, Maldives, the Philippines, Europe and the US in future.
