Thai hotel industry poised for growth in 2025, SCB EIC reports

 

Siam Commercial Bank's Economic Intelligence Center (SCB EIC) has projected a promising outlook for Thailand's hospitality sector in 2025, driven by a robust influx of both domestic and international tourists.

 

 

Dr Kamolmal Chaenglom, senior analyst at SCB EIC, revealed in a recent study that the hotel industry is expected to experience significant growth in occupancy rates and average room prices. The forecast builds on the continued recovery of international tourism and increasing domestic travel.

 

 

In 2024, the nationwide average occupancy rate is anticipated to rise to about 72%, with average room rates projected to increase by 8% compared with 2019 levels. The projection is underpinned by an expected 36.2 million foreign tourists and 270.2 million domestic travellers.

 

Looking ahead to 2025, the positive trajectory is set to continue. The average national occupancy rate is forecast to climb to 74%, with room rates expected to grow by an additional 5% from the previous year.

 

 

However, the industry faces growing challenges, particularly increased competition. New room supplies are gradually emerging, especially in key tourist destinations such as Phuket, Surat Thani and Phang Nga in the South, and secondary cities like Nan, Chiang Rai and Chanthaburi that are gaining popularity among domestic tourists.

 

 

 

 

The report identifies several promising segments within the hotel industry:

• High-end and luxury establishments catering to affluent tourist markets, particularly those from the Middle East.
• Hotels situated in prime tourist locations like Phuket and Bangkok, and accommodations in secondary cities benefiting from government tourism promotion initiatives.
• Adaptable hotels targeting emerging travel trends, including wellness tourism and digital-nomad-friendly “workation” options.

 

 

Environmental sustainability has emerged as a critical focus for the hotel industry. Many businesses are increasingly adopting modern technologies to reduce greenhouse gas emissions, implementing energy-efficient equipment and intelligent systems. There's also a growing emphasis on engaging guests and suppliers in collaborative sustainability efforts.

 

 

The SCB EIC's analysis suggests that while challenges persist, the Thai hotel industry remains resilient and well positioned for continued growth in the coming years.