Hotels and resorts in Thailand saw slight recovery in occupancy in 2010, but are still struggling to improve its rate positioning after several years of political and economic turmoil, reported Horwath HTL.
1Participating hotels, however, are optimistic about the occupancy and ADR outlook in 2011 and 2012.
The sample of respondents reported an average full year occupancy of 58% at an average daily rate (ADR) of THB3,114 in 2010; compared to 56% at THB3,411 in 2009. Total revenues per available room increased slightly from 2009 by 2 percent, but larger increases in departmental expenses and undistributed operating expenses PAR resulted in a significant 13% year-on-year (YOY) drop in Gross Operating Profit (GOP).
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) per available room dropped by 16% YOY consequentially. The highest occupancy levels were recorded in Pattaya, while the lowest were in Chiang Mai and Chiang Rai.
The domestic market made up about 19% of total demand, making it the single largest geographic market for Thailand, particularly in locations such as Chiang Mai, Chiang Rai, Hua Hin, Cha-Am and Pattaya. Other key markets for the country include Japan, the United Kingdom, USA and Germany. As a region, however, Europe remains the largest geographic source for the Land of Smiles.
"The past few years have been very eventful for Thailand, having undergone extreme political and economic turmoil amidst the global financial crisis," said Robert Hecker, Managing Director of Horwath HTL Asia Pacific. He added, "Thailand, however, has always been of great interest to tourists and investors alike, and we at Horwath HTL, continue to trust in the future of the hotel industry in Thailand."
Despite the slow recovery, hoteliers in general are enthusiastic about the future. About 78% of the respondents indicated optimism in the occupancy outlook for 2011, with growth expected to be around 11%. 60% of the respondents also expressed positivity in the growth of ADR in 2011, albeit at a smaller margin of about 8%.
Outlook for 2012 is also positive. 75% of respondents expect ADR in 2012 to pick up as a result of a stronger focus on ADR growth.
1 - The 2011 Thailand Hotel Industry Annual Survey of Operations. (Financial Year 2010)
68 hotels and resorts across the country participated in the 2011 Thailand Hotel Industry Annual Survey of Operations, making this one-of-a-kind survey the most representative to date. Horwath HTL publishes this study for several countries in the region, including Malaysia, Indonesia, Singapore, China and Japan. For more information, or to download the order form, visit www.horwathhtl.asia About Horwath HTL
Horwath HTL (Hotels Tourism and Leisure) is one of the world's pre-eminent consulting specialists in the hotel, tourism and leisure industries, providing unequalled experience and expertise for client projects around the world through a combination of detailed local knowledge and international understanding. Horwath HTL is currently the world's largest consulting organisation specialised in hospitality, with 50 offices in 39 countries. 
