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     Issue: August/September 2003

COVER STORY - Business Hotels

Bullish in Bangkok
BY Jeremy Colson

Tourism Authority of Thailand (TAT) figures show the country received 824,979 business travellers last year. It was a fall on the 2001 figure due to the knock-on effects of the events of 9-11, but gave business travel a 7.64 per cent share of the overall inbound market.

 
Business arrivals to Thailand
YearArrivals% change
1998706,163-2.11
1999743,0035.22
2000860,78615.85
2001878,5712.07
2002824,979-6.1
Source: TAT
 
This year, the business travel market was recovering nicely, with figures for the first three months up by 4.51 per cent on the same period in 2002. The market was destroyed from April to June by the impact of SARS, but since the crisis abated, recovery has been swift.

Landmark Hotel general manager, Mr Frank Clovyn, said the recovery in business travel had already happened. “We achieved growth in July over last year and we're seeing a very strong August, September, October and November. We won't make budget for the year because of the lag in leisure travel, but our business figures will be four per cent up year on year.”

The hotel is looking to increase rates next year by six to 12 per cent. This is in keeping with product improvement, service improvements and overall re-positioning at the hotel. “We are looking at a new executive lounge on the 31st floor. We are getting much more focused on business travel and we're aiming to change the mix from 65 per cent corporate to 75 per cent within two years,” he added.

Westin Grande Sukhumvit general manager, Mr Keith Hardie, said business occupancy started recovering in early July. “We have been back to 2002 levels since early June.

“We have recovered fully already. The only thing preventing us from achieving 80 or 90 per cent occupancy is that leisure business is still lagging behind.”

Mr Hardie added that rates today were much the same as before the hotel became a Westin.

“For the next contracting season we are looking for a 15 to 20 per cent growth on rates. This is purely because of the improvements made to the product.”

Pan Pacific Bangkok general manager, Mr Bill Sayce, said July this year was five per cent up on the same month in 2002. “Some of this would have been pent-up demand, but August is looking good too. Even though the booking pickup time is shorter (about 15 days), it is coming through, and it is virtually back to normal,” Mr Sayce said.

He added that forward bookings for September, October and November had “some way to go”, but if the trend continued, the hotel would fill up.

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