The most recent TTB Analytics research is yet to be posted on the bank’s website, though Thai media have already got access to it. Extracts from the report were posted today (Feb 24) by MGR Online and other news outlets in Thai language.
According to TTB Analitics, long-term rentals (1 year and more) show moderate growth while short-term rentals (under 1 year) are booming on tourism revival.
Short-term rentals are expected to grow by 33.5% and reach B11.3bn in 2023 mostly driven by inbound tourism. Long-term rentals are forecast to grow by 5% to B40bn as the domestic economy gradually returns to normal levels of activity after the COVID-19 pandemic.
“During the five years before the outbreak of COVID-19 (2015-2019) the overall value of the Thai car rentals market had been growing at an average rate of 8% per year, driven by both types of rentals. As the economy was disrupted [by lockdowns in 2020], long-term and shor-term rentals dropped by 8.9% and 2.9% respectively. The income from short-term car rentals, which are directly related to tourism, then decreased by 80% from the pre-COVID levels of 2019. In 2022, the epidemiologic measures in the country were eased, resulting in economic activity beginning to return to normal levels. The overall value of the car rentals market recovered by 19.6% in 2022,” reports MGR Online.
“Data from the Department of Business Development shows that currently there are 1,187 car rentals operators in Thailand with most of them working in Bangkok (35%), Phuket (7%), Chonburi (7%), Chiang Mai (6%), Suratthani ( 5%) Nonthaburi (4%) Samut Prakan (4%) Pathum Thani (3%) and Rayong (3%),” MGR Online says.
According to TTB Analytics, more than 75% of car rentals are based in “areas of tourist and economic activities”. In terms of income, Bangkok leads the way (77%), followed by Samut Prakan (12%), Chonburi (3%), Pathum Thani (2%) and Nonthaburi (1%).
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