On the auspicious occasion of His Majesty the King’s 79th birthday, we would like to use this opportunity to extend our best wishes for a long and healthy life.

We are pleased to have produced this fifth issue of Diethelm Travel's Thailand Tourism Review and renewed our commitment to the Thai people.

This year's review is particularly significant as the year was a milestone one for the country and for Diethelm Travel Thailand.

The 60th anniversary of His Majesty the King's accession to the throne, and the subsequent celebrations, showed the wonderful people of Thailand at their hospitable best. Thailand enjoyed extensive worldwide media exposure and continues to benefit from this. May His Majesty continue to enjoy a long and healthy life.

Our parent company – Diethelm Keller Holding – celebrated 100 years of continuous business operations in Thailand and Diethelm Travel itself has been operating here for 50 years. HRH Princess Maha Chakri Sirindhorn graciously officiated at our celebration dinner held at Phra Racha Wang Derm, Thonburi Palace in February.

It has also been a very satisfying year for business. In 2006, Thailand proved its capability and determination to prosper in the face of adversity on a number of fronts. The tsunami had cast a blight across the previous year and in the immediate aftermath it was difficult for many to see how the country could recover as swiftly as it has done. That post-tsunami performance has been a tribute to the dedication and resilience of the people of this country and full credit must go to them for the rapid rebound even in the areas most badly affected by the disaster.

The new year has brought new challenges but once again Thailand has risen to them, addressed them, and moved on.

Of course there is still much to be done in certain areas, but we believe the industry has the talent, the will and the skills to take on these tasks to build on our past successes. Thanks to this, the tourism economic picture remains bright.

The long-awaited opening of Suvarnabhumi Airport in September 2006 once again raises the profile of Thailand and shows the desire of Thailand to be at the forefront of Asian tourism for many years to come. It opens up new possibilities for growth and an unprecedented opportunity to capitalise on new areas such as inter-regional travel.

My thanks to the many contributors who have made this review possible. It has become essential reading for the travel trade worldwide as it focuses on this important market.

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As this publication comes out on 5 December, His Majesty the King’s birthday, we wish His Majesty a long life as he continues to lead his people with wisdom and compassion.

It is also with great pleasure that we present the 5th Diethelm Travel’s Thailand Tourism Review, a summary of the past year in Thailand's tourism industry, a year of rapid growth, the upgrading of hotels and further development. The industry has shown remarkable progress and its optimism and entrepreneurial spirit is unsurpassed, so much so that, where things looked bleak two years ago, there is now renewed optimism and trust in a great future ahead.

Bangkok has experienced an expansion in growth in hotel occupancies and earnings all year round. Many hotels have been extensively renovated thus creating a market with an excellent hospitality industry at an affordable price. The building boom in Thailand's resort areas is enormous. Both Phuket and Ko Samui have seen further investment in villa-style properties, whereas large-scale hotel and condominium developments can be found in Pattaya. Luxury properties have opened in Chiang Mai, thus giving the city an excellent destination marketing push. The "hub of the north" is taking shape with more regional flights between Chiang Mai and surrounding cities. New hotel properties and a new airport have made Krabi, Lanta and Trang more accessible and Ko Chang continues to grow into an all-round resort island.

Thailand also welcomed the launch of Suvarnabhumi Airport, the new gateway to Thailand and Indochina. The new facilities will help to deal with an ever-increasing number of air passengers to Southeast Asia. The much debated opening of the airport was a great success, outperforming other airports in the region.

It was also a year where changes in consumer behaviour became even more evident. Faster telecommunications has resulted in holiday planning at shorter notice and greater price-comparison power available at the customers' fingertips. These changes have forced the industry to rethink old business models and invest in technology to meet such demands. We have also seen an increase in demand for available human resources and companies will now need to invest more in human-skills development.

Looking forward, we see exciting new frontiers in sustainable tourism. The environmental impact of tourism will be under increased focus and will require action in some places, smart solutions in others. As we are aware, tourism does infringe on natural resources and a balance has to be struck.

The most important event of 2006 was the 60th anniversary of His Majesty the King's accession to the throne, which yielded international admiration for His Majesty, the Royal Family and the Thai people. The large-scale celebrations were viewed by a worldwide audience and sent a clear message to the rest of the world: Thailand continues to be truly amazing!