Demand for Hotels in Thailand Continues to Grow

Nov 14, 2017 | Emerging Trends, Thailand

Recent research has shown that the hotel industry has enjoyed steady growth globally since the middle of 2016.

This has been noted across Europe and the Asia Pacific with Thailand noticing significant rises, thanks in the most part to the increased number of tourist coming from China and other parts of Asia. Although many countries have experienced weakening GDP, demand and occupancy rates in hotels have remained high.

According to research, a shift in demographics has played a significant role in the rise in demand. It appears that consumers no longer crave physical goods preferring not to opt for quality experiences. Older generations have always tended to favour spending large proportions of their income on leisure activities, including holidays but it now seems that millennials are following suit. Their desire for travel and to experience new things has increased demand for hotels even further.

The increasing number of online booking platforms has undoubtedly played a role in increasing demand. It is now far easier for consumers to book hotel rooms through sites such as Agoda and and review sites such as Trip Adviser means many travellers know exactly what to expect before they arrive at their destination. All of these sites have increased in popularity in Thailand over the last few years with resorts such as Pattaya and Phuket benefitting the most.

The hotel sector has responded well to the threat that was posed by AirBnB, a site that offer low-to-mid end accommodation on a short term basis. Of course, this type of rental is technically illegal in Thailand although the law isn’t generally enforced. The hotels have fought off the competition by increasing the number of services that they offer as well as increasing their standards and charging lower rates when occupancy levels are down – something that would have been unheard of a few years ago.

Of course, it is not just the tourist resorts that have seen an increase in demand for hotel rooms. Bangkok has experienced its highest occupancy rates and Average Daily Rates for many years. Tourist numbers are increasing at 8% year on year and this has unquestionably contributed to these figures, not just in Bangkok but across the country as a whole.

Developers, many of whom had previously concentrated on building condominiums, are now building hotels at a phenomenal rate. Indeed many developers and hoteliers have teamed up to offer investors the opportunity to purchase units in hotels complete with guaranteed rental returns that can run for anything up to 20 years.
It is hard to question the fact that hotels are enjoying a healthy period of growth at the present time.

In fact, Thailand’s hotel industry is one of the few sectors that is still experiencing steady growth with demand still on the increase with no sign of any let up. Many in the industry are excited by these results although some analysts still question whether owners and operators can raise rates whilst still enjoying the existing growth rates.<?p>

Investments Backed by one of South East Asia's BIGGEST Holiday Resorts

Don't Miss Out!, Entry Level Investments start from as little as $5000 and returning 15%+ R.O.I.

Discover Why a Change in Tourism is Great for Thailand’s Economy

Thailand is currently experiencing a change, meaning today we see a completely different view when it come to the Kingdom's tourist industry. Over the years, the visitors to the country came from the UK and other European nations but times have changed, mainly due to...

Thailands GDP Is ‘Rock Solid’ thanks to its Diverse Economy!

Thailand's GDP is rock solid, and has a diverse economy compared to many other countries around the world. If you take the Middle East or Russia, their economies are based on one item – oil. if the price of oil drops, it has a huge impact on their economy. Thailand’s...

A ‘New’ Pooled Investment Fund

The New Nordic Group is one of the leading property developers in Pattaya and indeed they have been so successful that they can now be found in other areas of Thailand and Asia. The company has an impressive track record for offering the 10% rental guarantee concept...

Share This

Share this post with your friends!