A TUMULTUOUS 2014 tempered the 2015 outlook of Thailand’s hospitality sector but industry players are hopeful for a “stable” year ahead, although performance this year is unlikely to reach the outstanding levels achieved in 2013.
While the “shine” is off, Thailand’s tourism industry is definitely not broken, experts insisted at the 4th Annual Thailand Tourism Forum (TTF) in Bangkok yesterday.
“The doom of last year was a lot of empty rooms,” said Jesper Palmqvist, area director Asia-Pacific, STR Global. Occupancy in Thailand dipped from 73 per cent in 2013 to 65 per cent last year, mostly driven by Bangkok, which saw a year-on-year decline of 16.2 per cent.
On a more positive note, Thailand’s ADR grew 2.6 per year-on-year, with half of hotels in Bangkok recording positive ADR growth in 2014 year-on-year. “Hotels did not dim down on rates last year…pressure was held,” said Palmqvist.
Furthermore, the Thai capital started seeing a recovery in 4Q2014, with RevPAR increasing 2.5 per cent year-on-year in the last quarter. Occupancy in Bangkok for December 2014 reached the highest-ever level recorded by STR Global since 2000 at 76.4 per cent and when comparing quarters, 4Q occupancy hit 77.5 per cent – the best seen since 2006.
Industry leaders speaking at TTF 2015 also came to a general consensus that Thailand needs to be less obsessed with high arrival targets and broaden source market focus – certainly not new points – especially when unpredictable world events have added even more uncertainties to the travel business landscape over the past year.
“Thailand has been too dependent on a small number of markets, such as the Russian market which has decreased by 60 per cent and will probably disappear. Mature markets have declined in recent years and will continue to decline,” remarked Markland Blaiklock, COO, Centara Hotels & Resorts. “This year will be a good wake-up call.”
Political stability was again highlighted as a vital element for Thailand’s tourism development. Peter Henley, president & CEO, Onyx Hospitality Group, said: “The industry is used to the political comings and goings (of Thailand). If martial law is removed, that will be great for business but we have to plan as it won’t be removed.”
Looking ahead, InterContinental Hotels Group, COO, Asia Australasia, Clarence Tan, opined that “2015 will be an infant year (for ASEAN Economic Community) and lay the groundwork for development”, and Thailand’s abundant labour supply will put it in a good position to weather the challenges.
Meanwhile, emerging destinations such as Buriram and the Eastern Seaboard/Rayong also present opportunities.
Urging the development of resort town Hua Hin, Dillip Rajakarier, CEO, Minor Hotel Group, said: “Hua Hin has an airport and nice hotels, so if you can get LCCs to come in, say from Singapore, Hua Hin will become a great destination.”
