Mr Srettha at The Standard, Bangkok Mahanakhon hotel. The hotel expects to have an average occupancy of 72% in 2023.
Standard International, a hospitality subsidiary of SET-listed developer Sansiri, is expecting this year’s strong tourism recovery to continue into 2023, with the resumption of the Chinese market a key driver.
Srettha Thavisin, chairman of Standard International, said global travel demand saw a significant uptick this year.
“The tourism sector is rebounding significantly, with robust growth projected for 2023-25,” he said.
“How strong it will be depends largely on the anticipated global recession. The key driver will be the Chinese.”
Mr Srettha said The Standard, Bangkok Mahanakhon hotel is estimated to have an average occupancy of 72% in 2023 as the tourism sector posts a strong recovery.
This month the hotel has a booking rate of 87% and it is at 70% for January 2023, he said.
The 155-room hotel, owned by duty-free shop operator King Power, has reported a year-to-date occupancy of more than 90%, exceeding its target of 80% set when it opened on July 29, 2022.
The hotel’s average daily rate was 20% higher than the market index, while revenue per available room was 150% higher than the competitive set, said Mr Srettha.
“We beat expectations because of both a strong recovery in the tourism sector and the hotel itself,” he said.
“We are a boutique brand with a specific target market that wants different experiences and styles.”
The hotel’s revenue from food and beverage outlets was 40% above its target and accounted for more than half of total revenue, compared with other hotels recording 30%, said Mr Srettha.
Thanks to regular events, its revenue is not solely dependent on accommodation and foreign tourists, he said.
To fully capitalise on the growth in global travel, Thailand should work to increase the length of stays to eight nights, up from three, rather than focus on the number of arrivals, said Mr Srettha.
“If we want to increase the number of tourists, we may need to invest in expanding our airports,” he said.
“Instead, we can promote second-tier cities nationwide using our culture, food and destinations to encourage longer stays without investing in airport expansion.”
Promoting the tourism industry is not limited to the Tourism and Sports Ministry, said Mr Srettha.
The Foreign Affairs Ministry could accelerate visa application processing or grant exemptions for some nationalities like the Chinese, he said, while the Transport Ministry should work to improve airport management.
Mr Srettha said Standard International plans to sign a contract to manage a small hotel in Chiang Mai, which will be renovated and branded as Bunkhouse, one of its boutique brands.
“Bunkhouse will be a small property with only 40-80 rooms,” he said.
“We are looking for hotels of this scale in cultural provinces like Sukhothai to expand the Bunkhouse brand in Thailand.”
