Rising tourist numbers boost thailand hotel market

Overall international passengers arriving at Phuket International Airport grew 23.3 per cent in the first quarter of 2013 compared to the same period in 2012.

Arrivals from China and Russia drove the increase, with visitor numbers jumping 100 per cent and 43 per cent year-on-year respectively. As a result, hotel performance in the tourist and investment hotspot is improving, pushing up occupancy rates to over 80 per cent.

The Average Daily Rate also increased - although at a slower rate - alongside the Revenue per Available Room, which was fuelled by the rising occupancy rates.

The most improvement has been seen in the luxury hotel market, notes CBRE.

“We believe that tourists are willing to spend more on accommodation when they go for a resort holiday than they do for a resort holiday than they do on a short city break in Bangkok,” comments CBRE. “This desire for better quality has meant that the higher end of the market is performing better than the mid scale.”

With 23 mid-range to luxury hotels projects on the way for 2015, boosting supply by 23 per cent, Phuket’s hospitality sector has a promising outlook.

“We expect this year to be another strong year for hospitality sector in Phuket,” comments CBRE Thailand.