Hotel occupancy rates in Bangkok during the first quarter of 2024 bounced back close to pre-pandemic levels, primarily fuelled by an influx of Mice (meetings, incentives, conferences and exhibitions) travellers.
Tanakorn Thanuthanud, manager of the valuation and advisory services department at property consultant Colliers Thailand, said Bangkok saw an increase in the number of Mice travellers visiting the city for such activities.
"The resumption of international events in Bangkok attracted more tourists to the city," he said. "Fan meetings and concerts have made a spectacular return to various venues."
According to Colliers, Bangkok's hotel occupancy rates during the first quarter of 2024 reached 80.7%, marking a significant rebound close to that of 2019, with potential for further growth.
Last year, the occupancy rate was recorded at 76.7%, improving from 46.7% in 2022 and 13% in 2021, which had plummeted from 27% in 2020. The peak years were 2018 and 2019, when the occupancy rate stood at 82.4% and 82.2%, respectively.
Another key driver was the resurgence of Chinese tourists -- the largest number of arrivals during the period January to April 2024, totalling 2.35 million, representing 19.4%, he said.
Malaysians were next at 13%, followed by Russians at 6.3%, Koreans at 5.6% and Indians at 5.3%.
Boosted by the influx of Chinese visitors, the total number of tourist arrivals in the first four months reached around 12.1 million, according to the Tourism and Sports Ministry.
Despite being lower than the peak of 14 million in the same period of 2019 and 13.7 million in the same period of 2018, it surpassed the figure recorded in the same period of 2017, which was 12 million. By the end of 2017, the total had reached 35 million.
Colliers reported that the number of hotel keys in Bangkok stood at 112,218 as of the fourth quarter of 2023.
The average daily rate (ADR) slightly increased across all segments, settling at 4,150 baht, marking a 1-2% increase from the third quarter of 2023.
The luxury segment recorded an ADR of 6,650 baht, up from 6,580 baht in the third quarter. The upscale segment saw an ADR of 3,600 baht, compared to 3,522 baht, while the midscale segment witnessed a rise in ADR to 2,200 baht from 2,060 baht.
"The upscale sector performed well post-pandemic, whereas the midscale and economy sectors had limited recovery due to price competition," Mr Tanakorn noted.
Meanwhile, backpackers had more options such as shared accommodation and alternative long-term travel choices that offered lower prices.
Over the next two years, the Bangkok hotel market is expected to see an additional 10,000 new hotel rooms, with over half of them coming from the upscale segment.
In the luxury segment, Bangkok will see the completion of new supply totalling 555 keys in 2024.
This includes 52 keys at Aman Nai Lert Bangkok, 244 keys at Andaz One Bangkok and 259 keys at The Ritz-Carlton, Bangkok, all situated on Wireless Road.
