Thai hotels enjoy strong Q4
Kasikorn Research Centre estimates revenue generated by the hotel sector will grow 6% to THB141,200 million during October to December this year.
The centre said during the last quarter of this year, hoteliers are rolling out campaigns to attract international tourists.
“Upscale hotels will partner with airlines to introduce room packages with air ticket promotions as well as all-inclusive packages covering room rate, breakfast, Wi-Fi, and shuttle bus services to the airport and tourist attractions,” the bank claimed.
The corner-stone of all the campaigns are discounts that extend beyond the customer to the travel agents who have been told even their contract rates are now discounted by 10 to 20%.
The bank claims the last quarter will see a partial recovery in travel to the country with a solid if not record performance for the last month of the year. The stronger booking trends are based on a return in confidence in the country, although there have been some highly publicised violent crimes against foreigners such as the Tao Island murders that worry the tourism industry. Much more needs to be done to raise security and put a check on violent crime.
However, the centre said although Q4 will be driven by New Year celebrations and the arrival of the cool season, it will not be enough to offset the decline in revenue from foreign visitors during the first three-quarters of the year. Therefore, hotel operators need to turn to domestic visitors to boost business up-country.
To tap the Thai market in Q4, there are now promotions offering discounts and easy installment payments.
In addition, the government approved a tax rebate scheme on travel expenses that citizens can tap when filing in their annual tax declarations.
Under the scheme, businesses and private individuals will be eligible for tax deductions on expenses until 31 December next year.
Individuals who buy local package tours, or hotel accommodation, will be able to list the purchases as deductible expenses against their taxable income for the year. The deductible amount is set at no more than THB15,000.
Companies will also be able to use the tax rebate for residential training programmes for employees.
For meetings, incentives, conventions and exhibitions, the centre claimed that cancelled and postponed events were gradually returning during the last quarter.
The bank think-tank unit estimated that revenue generated by the hotel sector in Q4 could reach THB141,200 million increasing 6% from THB133,200 million during the same period last year.
International tourists will generate THB97,600 million in revenue, up 6.1% from THB92,000 million in the last quarter 2013.
Thai visitors will generate, about half that figure at THB43,600 million in Q4, improving 5.8% from THB41,200 million last year.
Kasikorn Research Centre is a subsidiary company of Kasikorn Bank, which conducts tourism and business research mainly on Thailand’s economy including tourism with reliable recommendations and indicators on business prospects.