Thai hotels closed 09 in the red

Thai Hotels Association reports hotel average occupancy in 2009 registered 51.3%, a 15% decline from 60.59% in 2008.

Also, there was a decline in average room rates from Bt2,584 per room/night to Bt2,373 per room/night.

Based on regional reports, upper northern hotels enjoyed a slight increase of 1% raising the average occupancy to 54.6%. In December alone, there was a 14.6% increase, thanks to an influx of Thai tourists, but there was a decline in foreign tourists of more than 30%. 2010 should deliver a 60.5% in all-year-round occupancy for this region.

Lower North hotels witnessed declines of 10% to 47% in occupancy, due to a substantial drop in foreign tourists and government bookings that were diverted to small-sized hotels to save costs.

In the central region, hotels saw average occupancy drop 18.86% to 48.44% and rates also fell  from Bt800 and Bt900 to Bt700 and Bt800.

Hotel occupancy in the western region fell 18% to between 44% and 48%, while this year the prospects are similar due to increased competition.

The eastern seaboard, that includes Pattaya, reported a 7.46% decline to  a 45.57% occupancy, but last December the region saw a 19% improvement. Average occupancy this year should level off at 50% as 2,000 additional rooms come online. More than 200 hotel projects are awaiting approval.

The South, especially Phuket, Phang Nga, and Krabi, improved occupancy by  7% to 57.61. This year the region’s hotels should match the performance set in 2007. However, 3,000 more rooms will be added including a Ritz Carlton in Krabi and Andara Resorts and Villas in Phuket.