With more tourists coming to Bangkok now than ever before, the city’s hotel market has been thriving as a result. This is something that could continue through the next 10 years and beyond due to aviation reform and a fast growing tourism sector, notes JLL.
The hotel segment posted good numbers last year with average occupancy rates around 75 per cent overall. New supply during the next 3 years is predicted to grow by 9.4 per cent with demand expected to keep pace. A total of 7,400 rooms will be added to the hotel supply before 2020, according to JLL. Most of this will be in the upscale and luxury segments with more than 60 per cent of all new supply coming in these areas.
“Though the 9.4 per cent growth in new supply over the next 3 years sounds dramatic, the good news is that the number of international visitor arrivals to Bangkok is expected to rise significantly over the same period, and thus, there should be adequate demand to absorb new hotel supply coming on stream,” says Frank Sorgiovanni, Head of Asia Pacific Research at JLL’s Hotels & Hospitality Group.
Bangkok has established itself as one of the world’s most popular tourist destinations with 20.8 million international visitors coming to the Thai capital last year. The city finished 2nd in Euromonitor International’s 100 Top City Destinations Ranking 2017 with Hong Kong being the only city ranked higher.
“There are also a number of other factors that make us very positive about the prospects for the tourism industry, not only in Bangkok, but across the country. One of these is the Thai government’s recent approval for an aviation reform plan that will enhance the country as a regional hub with some THB 400 billion to be invested over the next decade into airport infrastructure. This will more than the double annual passenger capacity to 277 million. This is good news for Thailand’s hotel sector as more international arrivals will help ensure continued growth in demand for hotel accommodation,” says Sorgiovanni.
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