"This rate increase will be substantially higher than the hikes of 5 to 7 per cent seen in previous years," said Prakit Shinamourpong, vice president of the Thai Hotels Association (THA), speaking after the its monthly members' meeting yesterday.

Prakit said that five-star hotels would be upping their room rates from either October or November. It was typical to make annual adjustments in the last quarter so that the new rates came in at the beginning of the high season, he said.

Some hotels have said they will increase rates by more than 10 per cent. Among these is the five-star JW Marriott Hotel in Bangkok, which plans to hike its prices by 15 per cent from January.

The THA hopes the tourism industry will pick up next year due to the clearer picture on the political situation and the opening of Suvarnabhumi International Airport.

"The opening of Suvarnabhumi will boost the hotel industry. Many hotels are being developed near the new airport, in Bangkok as well as in Pattaya," said Prakit.

The THA says it expects more than 2,000 new rooms to be available around the new airport.

From January to July, the average occupancy rate of hotels in Bangkok was 73.6 per cent, down from 74.4 per cent in the same period last year, while hotels in the North are running at 52 per cent occupancy, up from 45 per cent. Hotels in the Northeast have been 60 per cent full, down from 70 per cent, while hotels in the South are at 55 per cent, up from 25 per cent.

However, Prakit said the association is worried about the recent outbreak of bird flu in Phichit province, which could affect one of the country's mega events - the Royal Flora Horticultural Expo - scheduled to take place in Chiang Mai in November.

He said the government should restore the confidence of tourists by clarifying that Phichit is not near Chiang Mai.

Suchat Sritama

The Nation