Savarin Luxury Property
Oct 31, 2024
The Tourism Authority of Thailand (TAT) has set a target of 40 million foreign tourists and 220 million domestic trips in 2025. This is part of the country's "Thailand Grand Tourism Year" initiative.
Thailand's hotel industry is expected to continue growing in 2025, with the country's government setting ambitious targets for tourism:
Tourism Authority of Thailand Boost
The Tourism Authority of Thailand (TAT) has set a target of 40 million foreign tourists and 220 million domestic trips in 2025. This is part of the country's "Thailand Grand Tourism Year" initiative.
Ms. Thapanee Kiatphaibool, TAT Governor, said, “Recognising 2025 as another challenging year, TAT will be putting our best efforts into driving demand and shaping supply to accelerate Thailand’s tourism ecosystem. Our ambition is to highlight Thai tourism’s pivotal role as a key driver of the country’s prosperity and socio-economic development while securing the kingdom’s position as a world-class tourist destination.”
Reiterating the importance of tourism for the Thai economy, TAT has set a target of no less than a 7.5 per cent increase in tourism revenue for 2025, or 1.7 times higher than Thailand’s GDP growth forecast for the year. The emphasis will be placed on expanding the quality leisure market segment, especially for first-time visitors from the UK, Ireland, Western Europe, and Western Balkan. Equally important are the new generations of travellers from the Americas and Canada, including Gen-Z, Millennials, Asian Americans, DINKs, and LGBTQs, as well as luxury travellers from the six Arab countries.
Hotel Industry Outlook
The hotel industry will continue to see improving conditions over 2024 to 2026, helped by ongoing government support for the industry and the annual foreign arrivals returning close to their pre-pandemic level of 38-40 million by 2025. Meanwhile, domestic tourists are also expected to be making 200 million trips annually by 2025. Overall, the national occupancy rate is forecast to remain above 70% in 2024.
Hotels in the major tourist areas of Bangkok, Pattaya and Phuket: Income growth will track the rapid recovery in foreign tourist arrivals. The occupancy rate should average around 80% from 2024.
Hotels in regional centers and in other important tourist areas1/: These hotels will see revenue benefits from ongoing recovery in domestic tourism and government measures to stimulate the tourism sector.
Hotels in other provinces: Because travelers in these provinces are often on their way to provincial centers or tourism sites elsewhere, income for players in this group will remain broadly flat. Occupancy rates will tend to lag the other two main market segments.
New Hotel expansion in the Pipeline
New hotels are being built in popular destinations like Bangkok, Koh Samui, Phuket, Pattaya, and Chiang Mai.
The newly opened hotels include Dusit Thani Bangkok, an iconic hotel reopened on September 27, 2024 with a new look and improved guest experience, and Centara Hotels & Resorts, opened three new hotels in 2024 under the Centara Life brand in Surat Thani and Koh Samui.