Hotel performance across Thailand has bounced back after a troubled year in 2010. According to a new report from STR Global, revenue per available room (revPAR) for the first six months of 2011 is up in all major markets across the country.
Bangkok, which suffered most during the political demonstrations of last year, has seen occupancy increase 26% for the year-to-May 2011, albeit compared to a weak period the year prior. While average daily rates (ADR) for the same period have shown weaker growth (0.5%) there has been a stronger recovery in ADR over the last three months. The annual percentage change in Bangkok’s ADR was 4% in April, 15% for May and 11% for June. This has resulted in recent year-on-year revPAR growth for Bangkok exceeding that of the Thai market as a whole for the first time since the beginning of 2010. It should be noted however, that the ADR for the first half of 2011 was THB3,043 (US$102) – still some 16% below the peak of THB3,621 seen in the same period in 2008.
“After a difficult few years when the global economic slowdown was exacerbated by violent demonstrations, the Thai hotel industry is on a recovery path,” said Elizabeth Randall, Managing Director of STR Global. “As overall demand and international tourist arrivals picked up again, more and more guests will again experience the Thai hospitality.”
Speaking to Travel Daily yesterday, Dusit International’s Global Director of Sales, Simon Burgess agreed that country was recovering well. The company’s flagship hotel, Dusit Thani Bangkok was one of the properties hardest hit by the protests, but Burgess said that demand was quick to return.
“The leisure market bounced back relatively quickly after the protests, but what we’re seeing now is the return of groups, which is obviously a good sign,” Burgess said. “We have a little way to go with rates, but after all the events of the past few years, including the global financial crisis, it is difficult to gauge where we should be. Obviously what we’re looking for is a stable year to allow a full recovery.”
With the recent general election having passed off peacefully, hopes are high in the country that a period of long-term stability can now be achieved.
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