Decline in revenue for Hotels in Thailand
[quote]Data from STR Global, a leading provider of market information to the global hotel industry, highlights the plight of local markets in Thailand and puts the effect of the country’s recent political disruption into a regional context.
The ongoing political unrest in Bangkok has severely affected the country's hospitality industry, which already has to deal with worsening global economic conditions, and now concerns of a possible swine flu pandemic.
Over the five months from November 2008 to March 2009, the four Thai markets tracked by STR Global have reported monthly declines of more than 30% in revenue per available room (RevPAR) against the comparable period the previous year.
The falls in RevPAR were driven by declining occupancy levels that were not matched by similar declines in average room rates.
"It is reassuring to see that average room rates declined significantly less than occupancy, and RevPAR should be able to start improving as soon as occupancy and travel demand recovers,” said Singapore-based Jonas Ogren, area director Asia for STR Global.
5-month performance of selected Thai markets (November 08 to March 09) and percentage change to prior timeframe:
City Occupancy ADR THB RevPAR THB occupancy % change ADR % change RevPAR % change
Bangkok 52.7% 3564.8 1879.2 -31.6% -3.7% -34.1%
Chiang Mai 43% 3755 1616.3 -31.9% -11.9% -40%
Hua Hin 57.4% 5174.8 2968.2 -27% -9% -33.6%
Phuket 60.8% 5327.6 3236.9 -24.8% -10.9% -33%
Source: STR Global
The recent protests in April 2009, combined with the airport closures in 2008 as well as foreign governments’ travel advisories have made visitors much more wary of the destination.
The market reaction has been swift. Demand in Bangkok in the middle of April has rapidly fallen by more than half of that of the previous year, down to as little as 33% on certain days.
Despite such low occupancies, hoteliers are holding their rates as best they can with year on year declines of 4% and an average rate of THB 3,323 for the first three weeks of April.[/quote]It is time we mongerers get good rates!