Bangkok Luxury Hotel – Market View Q1 2009

The Thai hotel sector is facing the twin challenges of increased supply and a falling demand. Demand is declining due to a number of factors.

- the global recession has cut business travel and MICE events.

- the global recession has reduced personal travel and the currencies of several of Thailand’s major feeder markets such as the UK have fallen against the baht making Thailand a more expensive destination.

- just as memories of the airport closure in December 2008 were starting to fade Thai domestic politics again hit global news headlines with protestors invading the Royal Cliff Resort in Pattaya in April forcing the cancellation of the ASEAN
summit and civil unrest in Bangkok.
- Another factor affecting global travel has been fears about H1N1 Swine Flu.