With the ruling party Thai Rak Thai's (translated as Thais Love Thais) re-election, hotels are hoping for more trade and investment to pour into the country, leading to increased business traffic and higher occupancies. Jeffrey Studebaker speaks to hoteliers about their expectations.
The recent sweeping victory for the government of prime minister, Mr Thaksin Shinawatra, is expected to stimulate overseas trade and investment, resulting in an increase in corporate travel to the kingdom this year.
Extraordinary growth is forecast for the manufacturing sector, and the auto industry alone is expected to double its output over the next five years.
Immediately after Mr Thaksin's Thai Rak Thai party took a vast majority of parliamentary seats, the Thailand Automotive Institute laid before it a Detroit of Asia development plan, calling for a budget of 8.7 billion baht (US$217 million) to help double the industry's annual revenue to 1.3 trillion baht by 2010.
The auto industry was the second largest earner of export revenue after IT in 2004, accounting for a total of 700 billion baht and 12 per cent of the GDP. With the vast increase in overseas trade, a corresponding increase in corporate travel should soon follow and hoteliers close to business and manufacturing centres are rubbing their hands in anticipation of a bullish four-year term.
Grand Hyatt Erawan Hotel Bangkok director of marketing, Mr Sammy Carolus, said the election of the new government was very good news for his property, which fills more than 60 per cent of occupancy with corporate travellers.
"Overseas industrial and investment companies have confidence this government will take care of their interests, and we can expect to see a steady increase in corporate occupancy," he said.
The corporate travel market supplies 80 per cent of occupancy at JW Marriott Hotel Bangkok, primarily from the US and Asia-Pacific. Director of marketing, Ms Meg Evans, said the election showed an overwhelming confidence in the current administration.
"This will most definitely have a positive effect on the perception of Thailand as a manufacturing and investment destination," she said. The neighbouring Landmark Hotel Bangkok does more than 60 per cent of its business with corporate guests, with 70 per cent coming from Asia-Pacific. General manager, Mr Frank Clovyn, said the prime minister was known for his commitment to drive foreign capital into the country.
"Over the last four years, we have already seen tremendous growth in private and government ventures and this will surely continue. With the increased investor confidence, an increase in business traffic is bound to follow," he said.
While many hoteliers are wooing the corporate market by offering promotional packages or sprucing up their properties with highspeed Internet and designer boardrooms, InterContinental Hotel Bangkok general manager, Mr Michael Herrmann, said the election would yield more positive results than any discount or value-added perk.
"The corporate market cannot be summoned by promotions. They will only come if their companies perceive business in Thailand as profitable. "Now, companies that have held back projects pending the election are ready to move forward," he said.
The government is pursuing several niche travel markets, even designating a new bureau to handle the MICE (meetings, incentives, conventions and exhibitions) sector, but so far no special body has been named to promote corporate travel. However, some hoteliers see no need for a corporate travel marketing campaign. Sheraton Grande Sukhumvit director of sales and marketing, Ms Fiona Hagan, said the way to the corporate sector's heart was through its pocketbook.
"The corporate sector will respond as the government lays out incentives to draw investment into the country," she said.
