Hotels cross fingers for room rate rise

Hotels cross fingers for room rate rise

Hotels and resorts in Phuket have seen big falls in room rates, especially those on Chalong beach. The industry expects  to recover fully this year, with many hoteliers seeing room rates rising next year. (Photo by Thiti Wannamontha)
Hotels and resorts in Phuket have seen big falls in room rates, especially those on Chalong beach. The industry expects  to recover fully this year, with many hoteliers seeing room rates rising next year. (Photo by Thiti Wannamontha)

With the country's tourism recovery, local hoteliers expect to see a rise in their room rate next year, which has been frozen for almost two years.

Surapong Techaruvichit, president of Thai Hotels Association (THA), said Thailand's tourism business would fully bounced back this year, with an average occupancy rate higher than 80% in the first two months. 

"We're confident the occupancy rate will maintain this growth momentum for the entire year thanks partially to continued marketing promotions by tourism-related organisations and foreign travellers telling their acquaintances about tourist safety here despite the martial law," he said. "We're optimistic room rates will gradually increase, starting from early next year."

Mr Surapong said most hoteliers now knew how to work under martial law, while most travellers understand what it means.

The average room rate of hotel chains is currently quoted at US$103 per night, unchanged from 2014.

The Hotel Price Index (HPI) by Hotels.com reported that last year foreign visitors to Thailand fell 6.6% to just under 25 million. Figures began to rise starting in July after protests died down. Asian markets such as China and Malaysia led the charge, but Russian travellers, the third-largest inbound market, were hit by the falling rouble, with visitors down 27% for the year.

HPI data showed the average hotel price paid was down 4% to 3,222 baht per night, with a wide range across the country. The highest fall was in Chalong beach (Phuket), down 27% to 3,964 baht, with Koh Phi Phi down 18% to 3,600 baht and Koh Yao Yai down 15% to 7,047 baht. Koh Phangan and Chiang Mai both dropped 10% to 3,336 baht and 2,360 baht, respectively.

The two most expensive locales were in Phuket: Mai Khao beach at 8,660 baht, down 7%, and Choeng Thale, up 2% to 7,735 baht.

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