A positive forecast for Thailand’s tourist trade.
Thailand often trumps the top of the chart as a chosen holiday destination. Holidaymakers from across the world are drawn to the mix of culture, beaches, weather and food. Data released from the Tourism Authority of Thailand revealed that in 2016, more than 30 million visitors came to the Kingdom. This figure is expected to rise to 35 million in 2017. This is despite visitor numbers from China being down as a result of the crackdown of zero dollar tours in the second half of 2016.
As tourism is one of the country’s leading revenue generators, the hotel industry is big business. Investment in this sector remained robust last year and the sale of the Swissotel Nai Lert Park in Bangkok that is due to be completed this year will increase investment for 2017.
Mike Batchelor, managing director of Investment Sales Asia, JLL’s Hotels and Hospitality Group, commented, “Investment appetite by both local and foreign investors in Thailand’s hospitality market has showed no signs of subsiding as these investors have remained upbeat on long-term fundamentals in this ever-resilient market.”
Unsurprisingly Bangkok accounted for 50 percent of the total investment for 2016. One of the major transactions was Park 24 in the popular Phrom Phong of Sukhumvit that will be rebranded as a serviced apartment by Ascott. Many of Thailand’s visitors stop off in Bangkok as the city to enjoy its varied cultural attractions. Plus the country’s capital is a hub for transport across the region.
However activity was also high in some of the country’s other popular tourist hotspots including Pattaya, Phuket, Phang Nga, Koh Samui, Hua Hin and Chiang Rai.
“More Asian corporates are looking to place large capital reserves into alternative investment classes in some of Thailand’s real estate sectors that enjoy healthy trading performance and returns. Buoyed by strong long-term growth prospects for the country’s tourism industry, some of these corporates have showed keen interest in the hospitality sector, as evidenced from strong levels of bids for some of sought-after hotel assets currently offered for sale in Thailand,” commented Batchelor.
Much of the deals in 2016 were by Thai investors. However there were also institutional investors from Hong Kong and Singapore. The increased tourist numbers and activity in the hotel sector will trickle down to the rest of the property market. It will also spur on investors considering to invest in Thailand whether they are looking for a single unit in a condominium or a hotel.