THURSDAY, March 28, 2024
nationthailand

Dusit International buoyant about Thai tourism next year despite threats

Dusit International buoyant about Thai tourism next year despite threats

DUSIT INTERNATIONAL is optimistic about Thailand’s tourism industry next year despite what it says is the threat of currency fluctuations, flattening global economic growth and the Thai authorities’ crackdown on zero-dollar tours.

The company’s group chief executive officer, Suphajee Suthumpun, said: “Currency fluctuation and the flat global economic growth would be bound to affect the number of arrivals next year. But Dusit is confident the hotel and tourism industry will be in an upward trend as seen in recent years.”
However, the sector is not expected to see the same significant growth as recorded in 2015 when it grew 18.4 per cent and contributed nearly 21 per cent to the country’s gross domestic product.
Suphajee said despite the events that took place this year which had a dampening effect on the tourism industry, the group’s hotels in Thailand recorded growth for both average daily room rate (ADR) and revenue per available room (RevPAR).
Since the government moved to crackdown on zero-dollar tours since the middle this year, Dusit said arrivals to its properties continue to grow and it was seeking double-digit growth of Chinese guests. China remains among the top-three source markets for Dusit’s domestic properties. 
“Since the enforcement of the crackdown on zero-dollar tours, there have evidently been fewer bookings from Chinese tour groups compared to the same period last year at mid-range domestic properties. The number of Chinese in other segments, including our upper-scale hotels, have not been affected,” Suphajee said. 
The group said it properties in Bangkok and Chiang Mai grew nine and 12 per cent respectively during January and November. 
“Our new resort in the Big Mountain, dusitD2 Khao Yai, which opened its doors in August, also had a great start and has been enjoying a steady increase in occupancy and ADR month after month,” she said.
The group said the number of Chinese guests staying at its overseas properties, such as in the Maldives and in Guam, have increased year on year.
And with China emerging as a promising inbound market for the Middle East and Africa, as well as improved diplomatic relations between the Philippines and China, Dusit expects its share of the Chinese market at its hotels in those regions to increase.
The group said its regional sales network in Shanghai, Beijing and Hong Kong is capitalising on the growth potential to further develop this lucrative market.
It said that amidst unfavourable market conditions such as increased room supply and softening demand, Dusit Thani Maldives had fared exceptionally well by outperforming its competition in both occupancy and ADR especially during the summer months from June to September. 
The Guam property, opened in June last year, has been a phenomenal success, with it enjoying the reputation as the island’s most luxurious resort and market leader in ADR, the Dusit International said. 
Its city hotels in the Middle East, including dusitD2 Nairobi, Dusit Thani Lake View Cairo and Dusit Thani Dubai, have registered RevPAR growth of more than 30 per cent this year, it said. 
The group opened three hotels this year – dusitD2 Khao Yai, dusitD2 Kenz Dubai and DusitPrincess Resort Panzhihua in Sichuan, China.
Suphajee said the group signed nine new contracts this year, and may close one or two more before the year ends.
“We are expecting to open three or four hotels next year. In regard to agreements, we will maintain the same as 2016, and maybe add one or two more,” said Suphajee.
In 2018, Dusit plans to open Dusit Hospitality Management College, a fully integrated hospitality school and hotel in Manila, Philippines.
The Asean Economic Community, established in 2015, is facilitating a rapid rise in the middle class across the region, with more young travellers with disposable income for travel.
Dusit is confident that intra-Asean tourism to Thailand, which made up two-thirds or 66.5 per cent of all visitors in 2015, will continue to grow in 2017.
Currently, the group has 29 operating hotels and 45 hotels in the pipeline across Australia, Bhutan, China, Egypt, Indonesia, Kenya, Oman, Maldives, Mongolia, the Philippines, Saudi Arabia, Singapore, Sri Lanka, Qatar, Thailand, Tunisia, Turkey, United Arab Emirates, USA, and Vietnam. 
 

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