65 new hotels to open doors by end-2010 despite tough times

"Thailand's tourism industry is projected to grow in the long term, as the country can offer tourists a range of products at cheaper prices than other destinations. Many investors are expanding and undergoing investment to tap the trend," said Prakit.

However, he does wonder how the new operators can build market share during these tough times. That said, newcomers and existing players are all hoping the situation will recover from the second half of this year.

The THA has reported that 9,911 rooms came onto the market last year. Twenty-five hotels with a total of 3,823 rooms opened in Bangkok, followed by 25 hotels with 3,119 rooms in the South, nine hotels with 2,028 units in the East, five hotels with 621 rooms in the North and two with 320 rooms in the West.

Jatuporn Sihanatkathakul, chairman and managing director of the Landmark Hotel Bangkok, said some hotels being developed on Sukhumvit Road would postpone their openings due to the economic crisis, which is affecting all hotels in Bangkok and other major destinations.

Some hotels in the capital reportedly still have average occupancy rates as low as 10 per cent.

The THA is seeking assistance from the government in the form of more soft loans and tax incentives. The association is also urging tourism authorities to restore the country's image in order to rebuild the sector.

Kanok Suwannawit, president of the THA for the northern region, called on government agencies to hold major meetings and conferences in the provinces during the low season, as that would help hotel operators to keep on their employees.

Mathee Tanmanakrakul, president of the THA for the southern region, urged the Tourism Authority of Thailand to engage in overseas missions to rebuild confidence ahead of the next high season.