Thai hospitality sector draws attention of Mid-East investors
Investors from the Middle East are eyeing the hospitality sector in Thailand, and low-cost airlines and hotels in particular, in light of the Asean Economic Community (AEC) coming into effect next year.
Investors are looking for opportunities in the Kingdom, said a representative of Middle East investors, mainly from the United Arab Emirates.
At least one giant operator in the aviation industry is planning to operate a budget airline in Thailand, while another investor is interested in a hotel business in Phuket, the most popular resort-island in the country.
There has already been some investment from Middle Eastern interests in the hotel, resort and property sectors in Phuket, while many foreigners have chosen the island for their second homes and for long stays, said the representative.
According to another source, Transworld Aviation (TWA) – based in Dubai and operating as a stockist and supplier of aircraft parts and provider of maintenance services – is also planning to run a budget airline in Thailand.
The group has reportedly already lined up the plan and hopes to kick off the business by the end of next year.
However, executives of TWA have not yet confirmed the plan, although they have said they see great opportunity in Thailand.
The source said the new airline would likely run charter flights in the first year of operation, linking Bangkok and Phuket with southern China via flights averaging just a few hours. At least two medium-range aircraft, such as the Airbus A330, will be utilised.
The group is entering the Thai market by establishing a joint-venture firm to provide aircraft parts and maintenance in the Kingdom and elsewhere in the region, said TWA chairman Abdullah K Al Sulaimani.
It will be the first aircraft-parts stock and supply company from the Middle East to expand into the Thai market, or anywhere else in Southeast Asia, after having established a presence in India, Pakistan, Bangladesh, South Africa, Tanzania and the United States, he said.
“Southeast Asia and opening of the AEC offer a good opportunity to expand investment. We have chosen Thailand as our regional hub for long-term growth,” said the company chairman.
