Thai hotel room rates dropped 8% last year

Economy March 11, 2016 01:00

By The Nation

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The latest Hotel Price Index (HPI) from shows prices paid per night for accommodations in Thailand, including taxes and fees, fell 8 per cent last year compared with 2014, partly because of the country’s low inflation rate and lower global oil

The global index was 114 for 2015, closing the gap on the previous peak of 117 in 2007, the year before the world economic crisis.

According to the Ministry of Tourism and Sports, the number of travellers to Thailand surged in 2015. Visitor arrivals increased by 20.4 per cent over 2014, totalling 29.8 million, mainly driven by demand from the Chinese market.

The 8-per-cent drop in hotel prices in Thailand was good news for travellers, with some of them finding even more affordable rates at most destinations.

Travellers to cities in other Asian countries also saw a decrease in room prices, with rates in Kuala Lumpur falling by 20 per cent to Bt2,087 per night, in Seoul by 19 per cent to Bt3,232, in Bali by 19 per cent to Bt2,790, in Singapore by 18 per cent to Bt4,527 and in Taipei by 13 per cent to Bt3,279.

Room prices at 95 per cent of the hotels in Thai cities dropped last year, according to the HPI report. Travellers in Thailand paid an average of Bt2,968 per night, down from Bt3,226 in 2014.

Among Thai locations analysed in the HPI, Kanchanaburi and Koh Samet saw the highest decline at 39 per cent. The only destinations where travellers experienced an increase were Pran Buri in Prachuap Khiri Khan province and Koh Ngai in Krabi, rising by 7 per cent to Bt5,529 and 5 per cent to Bt3,473 respectively.

Hotel accommodations in popular destinations such as Udon Thani, Khon Kaen, Songkhla and Surat Thani proved to be competitively affordable, with average prices ranging from Bt810 to Bt1,720 per room per night.

Top destinations for foreign visitors also saw a drop in room prices: Phuket was down by 14 per cent to Bt2,754, Pattaya by 9 per cent to Bt2,110 and Chiang Mai by 8 per cent to Bt2,170.