Bangkok Hotel Market H2 2023

OVERVIEW

The 2023 data underscores the ongoing recovery of hotel demand in Bangkok, signaling positive momentum in the post-pandemic era. Domestic demand has nearly reached pre-pandemic levels, demonstrating resilience, while the international segment has experienced significant growth compared to 2022, with a remarkable increase of 144%. However, despite this progress, the international component remains 29% below 2019 levels. Preliminary occupancy data suggests that 2024 could mark the full recovery of demand, particularly as the international segment continues its gradual return.

The robust recovery of the Bangkok hotel market attests to the enduring strength and appeal of its underlying fundamentals. Fueled by the resurgence of the foreign leisure segment, the Average Daily Rate (ADR) has not only achieved full recovery but has surpassed 2019 levels across all hotel grades.

The number of international tourists to Thailand in 2023 exceeded initial forecasts, reaching just under 30 million. Bangkok attracted 25 million foreign tourists during this period, representing a substantial 2.4x year-over-year increase and achieving 71% of 2019 levels.

Analyzing market sources, Asia remains the dominant contributor, accounting for 72% of all international visitors. Within Asia, Malaysia holds the largest share at 16%, closely followed by China at 13%. However, it is anticipated that China will reclaim its position as the top market source in 2024, with an expected influx of 8 million Chinese visitors, as forecasted by the Tourism Authority of Thailand. Europe stands as the second significant source market, contributing 21% of all visitors to Thailand. Russia leads the European market with 5.3% of total foreign tourists, followed by the UK (2.9%), Germany (2.6%), and France (1.9%).

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