Mixed picture for hotel occupancy
The average occupancy rate for selected upscale (first class and luxury) hotels in Bangkok declined from 76 per cent in the first quarter to 67 per cent in the second as a result of the low tourist season, according to research by CB Richard Ellis (Thailand).
Although a similar decline was seen in the average daily rate, the yearonyear average daily rate comparisons were favourable, despite the recent political ten
¬sion and costcutting by business travellers.The first phase of the Centara Grand at CentralWorld was completed during the second quarter, adding 418 rooms to raise downtown supply to 24,498.
The majority of hotel supply downtown is midrange (average daily rate of Bt2,500
-Bt4,500), accounting for 51 per cent of stock, followed by first class, accounting for 20 per cent, luxury at 16 per cent and economy at 13 per cent.Meanwhile, the Tourism Authority of Thailand (TAT) esti
¬mates that 40 per cent of Bangkok hotel supply is located downtown. The majority of down¬town hotels are located in five main geographic subdistricts: Ploenchit, Sukhumvit, Silom, Sathorn and Riverside.Bangkok
's average occupancy rate for selected upscale (firstclass and luxury) hotels increased 3 per cent year on year to 67 per cent in the second quar¬ter, as a result of improvements in general tourism activity and traveller sentiment.According to TAT data, the average length of stay for international tourists in Thailand in the first five months of 2007
- the latest period for which figures are available - was 9.7 days, up 4.8 per cent year on year.During the first five months of 2007, Europeans stayed the longest on average (15.3 days), followed by tourists from the Americas (10.8 days) and the Middle East (10.4 days).
Not surprisingly, tourists from neighbouring countries in South Asia stayed the shortest period of time, at just 6.2 days.
In the first quarter, the number of international tourist arrivals increased by 9.8 per cent year on year to around 4.2 million, up from about 3.8 million in the same period last year.
Since the start of 2008, higher fuel prices have translated into a rise in airticket prices. This has served to depress tourism globally. It appears from the latest data available that tourism in Thailand has so far proved resilient, "but we will continue to monitor this situation", the TAT report said.
About 2,700 hotel rooms (10 hotels) are scheduled to be added to stock during the second half of the year. Of these, 44 per cent are expected to be first class. If all these hotels are completed as scheduled, it will raise concerns about oversupply given current global economic conditions.
The number of visitors to Bangkok remained healthy during the first half of the year, with Suvarnabhumi Airport handling 8 per cent more international arrivals year on year during the period.
However, considering the economic environment in Western nations, along with current projections for hotel completions over the next two years, TAT "remains concerned about sector performance".
Another negative factor is the continued competition from serviced apartments for shortstay visitors.
OTHER BUSINESS
-
Excavator plant to start in 2010
Bangkok Komatsu spent more than Bt1 billion on its second excavator-assembly plant at Bangpakong to serve.... -
Glow building 3 power plants
Glow Energy will proceed with three new power plant projects, despite the drop in quarterly net profit on the....
{literal}
Top Stories
- Household debt hits record
- Buffett shares his view on investment choices
- Chaiya plans early easing of foreign investment restrictions
- Pick-up in numbers of Thai firms seeking carbon credits
- SCB may be forced to raise deposits if LDR goes up further
- PAD needs to state ulterior motive soon
- Eagle sales boost gold
- Foreign investment will be hit: chambers
- More violence 'would dent investment'
- EU seeks 'fasttrack'
Tel 66-2-338-3000(Call Center), 66-2-338-3333, Fax 66-2-338-3334