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Hotels cross fingers for room rate rise

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.

tourism
By Bangkok Post

Friday 6 March 2015 08:57 AM


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)

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 per cent 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 B3,000 per night, unchanged from 2014.

The Hotel Price Index (HPI) by Hotels.com reported that last year foreign visitors to Thailand fell 6.6 per cent 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 per cent for the year.

HPI data showed the average hotel price paid was down 4 per cent to B3,222 per night, with a wide range across the country. The highest fall was in Chalong beach (Phuket), down 27 per cent to B3,964, with Koh Phi Phi down 18 per cent to B3,600 and Koh Yao Yai down 15 per cent to B7,047. Koh Phangan and Chiang Mai both dropped 10 per cent to B3,336 and B2,360, respectively.

The two most expensive locales were in Phuket: Mai Khao beach at B8,660 baht, down 7 per cent, and Choeng Thale, up 2 per cent to B7,735.

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