• In 2024, the hotel and accommodation sector is continuously recovering, driven by increased room revenue due to the revival of tourism, rising room rates, and a resurgence in revenue from conferences and seminars.
  • However, the recovery of revenue varies across different segments, depending on customer groups, locations, and competition in each area.
  • The Kasikorn Research Center estimates that the national occupancy rate for accommodations in 2024 will be around 70.7%, while the revenue for the hotel and accommodation sector is expected to reach approximately 950 billion baht, growing by 16.6% from 2023.

In 2024, the revenue of the hotel and accommodation sector is expected to surpass pre-COVID levels for the second consecutive year, driven by increased occupancy rates and average daily rates (ADR), as well as revenue from conferences and events.

  • The national occupancy rate is projected to be around 70.7%, which is higher than the average of 70.1% in 2019, thanks to strong tourism growth, especially from international tourists, expected to exceed 36 million, with an average stay of about 10.2 days, up from 9.26 days in 2019.

Occupancy rates in all regions are expected to grow compared to 2019, particularly in the southern region, which benefits from international tourists, while the eastern region sees support from both Thai and foreign tourists. In Bangkok, occupancy rates are expected to gradually improve but remain below 2019 levels due to a high number of available rooms.

  • Room rates (ADR) are expected to rise due to increasing costs, with an average increase of about 20% in 2024 compared to 2023, and an increase of 8.5% from the average in 2019. The rise in room rates is also influenced by the majority of new hotels being in the upscale category, with rates starting at 3,000 baht per night.

  • Other revenues, such as from conferences and events, are recovering and supporting hotel income. This year, the number of conferences and seminars organized by both public and private sectors, as well as international events and concerts, has increased significantly. It is estimated that in 2024, this revenue will be around 200 billion baht, growing by 28.4% from 2023.

However, the recovery of hotel and accommodation revenue varies across segments, depending on customer groups, locations, competition, and the number of available rooms in each area.

  • Upscale hotels and accommodations are expected to recover better than last year, especially in the southern and eastern regions, catering to both international and Thai markets, supported by increased spending by tourists, longer stays, and higher room rates. However, competition in this segment will intensify as most new hotels fall into this category. In the next 1-3 years, approximately 15,000 new rooms are expected to be completed nationwide, with over 40% in the upscale category, primarily in Bangkok.
  • Economy and Midscale hotels (priced below 3,000 baht per night) are recovering more slowly. Although the number of international tourists has increased, primarily from the middle-income group and backpackers who prefer these accommodations, raising room rates is challenging due to high competition and the availability of alternative accommodations like sharing, which appeal to certain tourist segments seeking long-term stays. According to AirDNA, as of April 2024, there are approximately 84,000 rental accommodations in the system, accounting for 10% of the total number of hotel rooms nationwide, with average occupancy rates in major tourist areas like Bangkok, Chiang Mai, and Phuket at 57-58% over the past 12 months.
  • Hotels and accommodations in secondary tourist cities are gaining more attention, as reflected in occupancy rates (OCC) that are higher than pre-COVID levels. This is due to many provinces placing greater emphasis on tourism, marketing activities, events, and creating landmarks to attract tourists. In the first quarter of 2024, several secondary cities with high occupancy rates and growth compared to the same period in 2019 include Chiang Rai, Yala, Nakhon Phanom, and Phayao.

In summary, the Kasikorn Research Center estimates that in 2024, the revenue of the hotel and accommodation sector will be approximately 950 billion baht, growing by 16.6% from 2023, with accommodation revenue accounting for 740 billion baht, or 78% of total revenue, while the remaining 22% is expected to be from other revenues, valued at around 210 billion baht.

[1] Source: Ministry of Tourism and Sports, the total number of registered hotel rooms nationwide is approximately 800,000.