JLLH's latest research report, "Digest 2006 Thailand", shows that the overall prospects of the country's tourism industry are expected to remain positive in 2006. During the first two months of this year, tourist arrivals to the Kingdom rose 34 per cent over the same period in 2005. Its conclusion is that tourists are returning to levels normal before the December 2004 tsunami hit the Andaman coast.

In the meantime, hotel markets in Asean countries are also growing. The trend is a tourism boom across the region, despite some terrorism risks and bouts of avian flu during the year.

Scott Hetherington, managing director for JLLH Asia, said the hotel business in Jakarta, Manila, Kuala Lumpur and Singapore was recovering, thanks to the emergence of budget airlines and various marketing activities. Along with this trend, hotels in Hua Hin are posting the biggest jump with 22.5 per cent, followed by Jakarta (20.1 per cent), Singapore (18.8 per cent), Manila (17.6 per cent) and Bangkok (13.5 per cent).

"A combination of strong international arrivals helped five-star hotels in Bangkok, Singapore and Manila to perform better than 2005. Strong MICE [meetings, incentives, conventions and exhibitions] are supporting Bangkok and Singapore as well," said Hetherington.

He added that five-star hotels in Hua Hin, Koh Samui and Pattaya had benefited from diverted tourism traffic from the tsunami and occupancy rates had risen 12.5 per cent from last year.

Hotels in Phuket are expected to fully rebound this year and should be benefit from continued tourism promotions and low-cost airlines.

Hetherington said Thailand's tourism was supported by a domestic boom in the private sector. The Tourism Authority of Thailand is promoting the country as the tourism capital of Asia and the gateway to Indochina.

Another positive development is the opening of new Suvarnabhumi International Airport, scheduled for this year.

Over the past few years, JLLH has completed transactions on five properties in Thailand: Bang Tao in Phuket, Crown Plaza in Phuket, Sofitel Silom in Bangkok, Garden Beach in Pattaya and Le Royal Meridien in Bangkok.

"The total value of the five projects was US$240 million [Bt9.1 billion]," Hetherington said. JLLH believed that more international hotel-chain operators wanted to come into Thailand and the company expected to gain more clients from this opportunity.

"In the next few months, JLLH will complete transaction on at least two projects in Bangkok," said Hetherington.

JLLH reported that the increase of global investment would bring more investors from the Middle East to become major players.

In January 2006, the Dubai-based Jumeirah took over the management of Essex House Hotel in New York, making the company's entry into the US, while Dubai Holdings made its first investment in Asia by buying a hotel in Phuket.

While 2006 should be a prosperous year for the hotel industry, Hetherington said his company would reap fewer benefits from transaction services than last year due to mature markets in the US and Europe.

"With markets opening in Central and Eastern Europe, China, India, Latin America and Southeast Asia, the firm expects transaction activity to gain momentum, but our research indicates that our global sales this year will be $40 billion, or a 10-per-cent drop compared to last year," said Hetherington.

JLLH opened the "9th Hotel Investment Conference" in Singapore on Thursday, bringing together 400 delegates from 17 countries.

Suchat Sritama

The Nation

SINGAPORE