Thailand Hospitality 1H/2022

Thailand’s economy grew better than expected in Q1/2022 by 1.1% from the previous quarter and expanded by 2.2% YoY, boosted by the overall improvement in the pandemic situation at home and abroad, more robust exports, and rising demand in the hospitality sector. As a result, overall GDP growth should increase to about 3.5% for the full year of 2022, as per FocusEconomics forecasts. 

Following the easing of travel restrictions and the ‘Test & Go’ cancellation in May 2022, Thailand’s hospitality sector drew more than 850,000 tourists by early May,and finally hit one million international arrivals for the first five months of 2022, bringing new hope to hoteliers. Several operators plan to reopen in the coming months as a result. Consequently, in response to the favourable incoming demand, the labour market has improved, with employment in the hospitality sector at around 60% of 2019 levels for five consecutive months from December 2021 to April 2022.

HOTEL & HOSPITALITY PERFORMANCE

In January, the Thai Hotel Association stated that the Omicron outbreak had slowed the Thai tourism industry, resulting in 25% and 50% of hotel bookings cancelled nationwide and in the Eastern Region, respectively. However, the current situation is gradually improving due to the low reported mortality rates from the Omicron variant and various support measures introduced by the public and private sectors. The government subsidy scheme ‘We Travel Together’ Phase 4, which runs from February to May 2022, is still one of the primary factors boosting domestic demand. The relaxation of ‘Test & Go’ measures led to Thailand welcoming almost 500,000 tourists in the first quarter, indicating a significant 2,367% YoY growth.