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     Issue: May / June 2004

COUNTRY REPORT - THAILAND

Boom time once more
By JEFFREY STUDEBAKER

AVERAGE room rates (ARR) have increased across the board for Pattaya’s business hotels in the first three months of 2004 over the same period last year and the trend is expected to continue.

Amari Hotels and Resorts’ corporate director sales and marketing, Mr Christian Lukey, cited steady increases in ARR for Pattaya’s Amari Orchid Resort.

Mr Lukey said: “Due to a stronger share in high-yield market segments such as the corporate market, we are seeing significant increases in ARR this year.”

Mr Lukey sees Pattaya as a destination with a growing appeal for corporate travellers. “There has been a lot of destination improvement, with cleaner beaches and cleaner water, and I think we will see an increase in business from higher-end markets in general,” he said.

The Dusit Resort Pattaya had an ARR increase of 10 per cent over 2003 due to a shift towards the corporate market and improvements in the property. Dusit’s spokesman, Ms Rurkrudee Suknun, said increases in ARR meant higher guest expectations. “We are working to meet the needs of corporate guests by expanding the business centre, and we have just finished adding high-speed Internet and giving the guestrooms a more business-like theme,” she said.

An increase in European business guests has brought a 12 per cent increase in ARR at the Thai Garden Resort, according to general manager, Mr Rene Pisters.

Mr Pisters however said the hotel had not raised room rates because so many new hotels were entering the market. “Nonetheless we have seen higher income due to some new European corporate accounts,” he said.

Royal Cliff Beach Resort director of marketing and sales, Mr David Holden, said the ARR increases were in line with expectations.

Mr Holden said: “The market has accepted some slight increases in room rates and, if it had not been for avian flu, the first part of the year would have been even better.”

He credits continuing improvements in the Royal Cliff for the increases in ARR. “We have an ongoing programme of refurbishment to keep abreast of the market and when we talk to suppliers we are able to achieve an increase in rates on this basis,” he said.

While some companies are adopting a wait-and-see attitude for the remainder of the year, most are confident that ARR will continue to rise for Pattaya’s business hotels.

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