Occupancy rates and revenue for hotels will tend to grow in line with continuing growth momentum of the markets for both domestic and international tourism, in particular for increases in the number of Chinese tourists coming to Thailand, who currently account for 27% of all international arrivals.
Investment in the hotel sector is also expected to continue in tourist destinations mostly along with investment plan of Thai and international chains, and in regional centers which are developing or which are home to other tourism attractions and that are benefiting from being connected to regional economic development and from building secondary tourist attractions, says “Thailand Hotels Industry Outlook 2018-20” report from Krungsri Research.
At the same time, however, the sector faces the possibility of competition from substitution goods/services and from ever-increasing numbers of hotel rooms, which are helping to raise overall levels of competition.
The state of the hotel sector directly relies on tourism situation. As regards the latter, information from the World Travel & Tourism Council 2017 indicates that tourism contributes around 10% of global GDP, though in the case of Thailand, this rises to over 17% of national GDP, generating THB 2.5 trn for the domestic economy.
The tourism value chain scatters across the various regions of…
