More than 50 hotels and resorts are scheduled to open in 2007-08, mostly in Bangkok, Phuket and Chiang Mai, raising the Kingdom's capacity to almost 200,000 rooms nationwide. This is expected to force some small and medium-sized operators to close their doors, due to inefficiency.

The projects are being developed by local and foreign investors. In the pipeline are 10 hotels scheduled to open in Bangkok, seven in Chiang Mai and the rest in southern Thailand, particularly in Phuket and on Koh Phi Phi, Koh Samui and other resort islands.

The 50 new properties will be the biggest investment portion in Thailand since the Kingdom began promoting the tourism industry 40 years ago.

This year, 44 hotels and resorts opened in Thailand, many of which were rebuilt after a change in ownership, due to financial problems.

A survey compiled recently by Diethelm Travel (Thailand) showed much potential for newcomers in the market, including the Marriott Hotel Group's Courtyard Hotels affiliate and Dubai's the Jumeriah Group, which is famous at home for its futuristic Jumeriah Beach Hotel.

The Chao Phya River is enjoying a renaissance, and Amanpuri has plans for the old maritime fire station, one of the most coveted riverfront properties.

Diethelm reports that Carlson Hotels Asia Pacific also plans to open five properties in the capital in 2009.

Thai Hotels Association (THA) president Chanin Donavanik said the hotel industry would grow in line with the international travel industry.

"For years, hotels in Thailand have been transferred to foreigners, which will happen more and more frequently," said Chanin.

THA figures show the country has 1,300 hotels and resorts nationwide. Of these, more than 600 are THA members.

Total capacity is estimated to be a maximum of 150,000 rooms, expected to reach 200,000 in the near future.

New projects scheduled to open in Bangkok in 2007-08 are the CentralWorld Hotel, Crown Plaza Sukhumvit, Le Meridien Bangkok, Novotel King Power and The Siam on the River.

The Banyan Tree, Sofitel, Le Meridien, Pan Pacific, Shangri La, Veranda and Manathai Village will open in Chiang Mai next year, along with Central Khao Tao Village and Guti Kiri Resort in Hua Hin.

On Koh Samui, new hotels to be developed are the Banyan Tree, Dusit Resort Samui, Four Seasons, Intercontinental, Melati Resort, Sofitel Nang Yuan and Library.

In the meantime, Pattaya is expected to see new projects from the Central Group, All Season Pattaya, Intercontinental, Le Meridien and Mantra Resort and Spa.

Phuket is attracting new investors along with the new hotels of the Kata Thani Group, Angsana Resort, Mercure Karon, Mercure Patong, Phuri Phiman, Raffles Phuket, Sofitel and Sala Phuket Resort.

The THA said the boom in the hotel industry was happening only in major tourist destinations. As a result, there will be wider gap between them and more remote locations.

"Eighty per cent of the five-star hotels are under management by foreign investors, and more local owners are falling under foreign control," said Chanin.

He said foreigners were interested in four- and five-star hotels in top Thai destinations.

The THA said local operators, particularly small and medium-sized ones, are struggling hard to compete with the giant players. As a result, more than 20 properties have been put up for sale, including the Baiyoke Pattaya, Montien Pattaya, Jomtien Holiday, Day Night Pattaya and Kho Kood Resort.

Suvarnabhumi Airport is expected to bring 2,000 rooms. Local operators - Central, the Amari Group, Four Wings and Miracle - are searching for new investment in the area.

The THA said the average occupancy rate for four- and five-star hotels is 80-90 per cent during the high season and 60 per cent in the low.

Wayne Buckingham, the Starwood Hotel Group's vice president and area manager director for Thailand, said the hotel industry would enjoy double-digit growth in terms of revenues at major destinations.

The stabile political situation is a key driver for the business.

Richard Greaves, general manager of the Grand Hyatt Erawan Hotel, said although the political situation had stabilised, the effects of the September 19 coup would still be felt into next year's first quarter.

He said regional business travellers would return very quickly, followed by leisure travellers. US, Australian and European travellers will take longer to come back, with an expected peak in next year's third quarter.

Suchat Sritama

The Nation