TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

Strong Baht Concerns For Thai Hotel Sector

Category: Hotels, Posted:21 Feb 2019 | 06:00 am

Thailand’s baht performance against Asian currencies in 2018, was unmatched, with the exception of the Japanese yen.

Commenting on the trend financial news Bloomberg have highlighted that in 2019, a further 4% in growth this year have it sitting at the top of the table.

Oddly, one of the underlying factors stimulating the baht’s appreciation is the recovery in tourism arrivals which has a double-digit impact on the country’s GDP.

While the elections remain a wild card on forward expectations, the reality is that the currency has not been hit like the Chinese yuan, which has been disrupted by a threatened U.S. China trade war and slowdown in its economy.

Despite higher than expected tourism numbers in 2018, hotel owners are cautiously optimistic on the prospects for the year.

In reality, despite rising prices for visitors, the economic climate is leading many property developers turning to hospitality assets as the real estate market remains volatile. The general view is that sustainable cash flow as part of their business mix is good and that tourism fundamentals remain strong.

Still, looking at nearby competitors such as Vietnam, which is rapidly growing from a cub into a tourism tiger, the issue of affordability is concerning. Currency swings remain a real and present factor in demand, so expect hoteliers to keep watching currency levels closely in 2019.

 

 

 

 

Other News

Read more

Dusit Ties Up With Layan Verde Phuket Branded Residences

Category: Hotels|Real estate, Posted:26 May 2024 | 16:53 pm Thai hospitality group Dusit International has signed a deal with VillaCarte Group for their upcoming Layan Verde project in Bangtao Phuket. The agreement covers 633 units under two brands – Dusit Residences and a Dusit Collection Hotel. An opening is planned in 2027 with a key highlight being an EDGE environmental certificate. VillaCarte Group has […]
Read more

Koh Samui Gets New Daily Direct Flights From Singapore

Category: Tourism, Posted:14 May 2024 | 09:32 am In a major boost for Koh Samui tourism, Singapore’s Scoot Airlines has commenced daily flights. Currently, there is a daily flight, with a second flight expected to be added in June of this year. Scoot is a subsidiary of Singapore Airlines. The airline is using Embraer E190-E2 aircraft which accommodate 112 passengers on the route. […]
Read more

The C9 Sessions – Understanding Thailand’s Hotel License Regime and Procedures for Branded Residences, Condo Hotels, Mixed Use Projects and Vacation Rentals

Category: Hotels|Real estate, Posted:13 May 2024 | 16:39 pm Branded residences, condo hotels, mixed-use projects, and vacation home rentals are becoming a significant player in Thailand’s hospitality space. As property developers, real estate investors, and property buyers are learning, this is a complex space that requires well-structured projects. Join us for a unique 90-minute co-working lunch learning session about all the moving parts in […]
SiaJai logo

Thailand's Leading Homecare Marketplace