WHILE room oversupply continues to be a recurring theme in Thailand’s hospitality landscape, hoteliers are confident of the sector’s outlook for 2013 amid strong tourism growth.
During the Thailand Hotel Leaders Summit panel discussion at the Thailand Tourism Forum 2013, InterContinental Hotels Group COO, Asia Australasia, Clarence Tan, downplayed the issue of room oversupply, saying Thailand’s many destinations would be able to absorb high inbound numbers.
“Pricing is a bigger issue than oversupply,” he cautioned, pointing to Thailand’s low room rates.
Peter Henley, president & CEO, Onyx Hospitality & Hotels, concurred, likening Thailand’s room glut to “a ticking time bomb” as hotel construction still outpaced rates.
Furthermore, delivering sustainable income growth amid rising energy costs and challenges in recruiting staff and boosting productivity was one of the “rain clouds” looming over the hospitality landscape, he added.
But opportunities abound to tackle the challenges facing the Thai hotel industry too, the speakers pointed out, especially in a market mix whose centre of gravity is increasingly shifting from Europe and the US to Asia.
Tan remarked: “China is a big source market, and Chinese customers are trading up rapidly to the upscale segments. Hong Kong experienced (the changing profile of Chinese travellers) within five years, and Thailand will see that too. Increasingly these customers will be chasing (high-end) experiences.”
Minor Hotel Group CEO Dillip Rajakarier, who observed a growing sophistication among the spending habits of Chinese and Russian travellers, agreed: “Chinese used to spend little when they visit our property in the Maldives, even carrying their own water from Malé, but today they are spending three to four times more on F&B and spa.”
At the same time, emerging South-east Asian economies will play a bigger role in Thailand’s tourism future.
Chanin Donavanik, CEO, Dusit International said: “(As) domestic tourism grows and more flights connect to Southern China, Laos and Cambodia, more destinations will open up in Thailand, particularly cities along the border.”
Meanwhile, Henley believes that Thailand’s corporate travel segment still has potential for growth. “There has been significant development of corporate hotels and destinations like Pattaya. Attracting meetings and corporate travel business should be the way forward.”
