The "Hotel Business Operator Sentiment Index for December 2024", released by the Thai Hotel Association (THA) and the Bank of Thailand on Wednesday, reflects a positive trajectory in Thailand’s hospitality sector.
The survey, conducted between December 11 and 25, found that hotels with four or more stars and those with fewer than three stars were able to boost their average room rates compared to November.
Thienprasit Chaiyapatranun, THA president, noted that 15% of four-star-and-above hotels achieved room rates of 5,000 to 7,499 baht per night. However, most (44%) fell within the 2,500-4,999 baht range, while 27% were priced between 1,500-2,499 baht.
Among hotels with three stars or fewer, 7% achieved room rates of between 2,500 and 4,999 baht. The majority (39%) priced rooms between 1,500 and 2,499 baht, while another 39% fell into the 1,000-1,499 baht category. Only 15% charged less than 1,000 baht.
"Although room rates have seen significant growth post-pandemic, we anticipate this upward trend to moderate in the coming months,” Thienprasit remarked.
The hotel industry in 2024 experienced notable improvement, with average occupancy rates surpassing last year’s figures and nearing pre-pandemic levels. This recovery was driven by a surge in foreign tourist arrivals.
In December, the national average occupancy rate climbed to 76%, with the East of Thailand leading at 83.9% (up from 70.9% in November). The South recorded an occupancy rate of 76%, and the North stood at 66.6%, slightly impacted by flooding in the third and fourth quarters.
"The survey predicts that the average occupancy rate in January 2025 will reach 73%, an increase from the same period last year," Thienprasit stated.
Foreign tourist arrivals continued to rise in December across Central and Southern Thailand.
"Most hotel operators expect foreign tourist arrivals to reach 40 million in 2025, aligning with the Tourism Authority of Thailand's [TAT] projections," he added.
Meanwhile, labour shortages that have troubled the hospitality sector, eased in December, benefiting both high-end and budget hotels.
The “Amazing Thailand Countdown 2025” event also played a key role in attracting domestic and international tourists, Thienprasit said.
"The festivities featuring concerts by renowned artists and dazzling fireworks displays, supported by visa-free entry for many nationalities, has positioned Thailand as a leading global destination for New Year celebrations," he said.
Looking ahead, the THA believes that the "Amazing Thailand Grand Tourism & Sports Year 2025" initiative will further boost tourist spending and open new business opportunities.
Despite the optimism, the THA underscored the importance of sustainable tourism. The association urged the government and private sector to address potential social and environmental impacts caused by increased tourist numbers.