Bangkok hotel occupancy rates hit 74% in H1 2024

This reflects an increase of 4.8 percentage points vs the same period last year.

According to Knight Frank, Bangkok's tourism industry continues its robust recovery in 2024, with international arrivals surging by 34% year-on-year (YoY) to 15.4 million, though still trailing pre-pandemic levels by 12%. 

Meanwhile, domestic arrivals have stabilized at 7.5 million, though they remain 19% below 2019 figures. Hotel occupancy rates have also seen an uptick, climbing 4.8 percentage points (p.p.) to 74%, while the Average Room Rate (ARR) has increased by 6.3% YoY, now standing 22% above pre-pandemic levels.

Asia remains the dominant source market for international visitors, with China leading at 20% of the total, followed by Malaysia at 14%. Europe is the second-largest market, accounting for 21% of all foreign arrivals, with Russia emerging as the top source.

Carlos Martinez, Director of Research and Consultancy at Knight Frank, highlighted that "Bangkok's hotel industry is capitalizing on this resurgence. In the first half of 2024, occupancy rates reached 74%, reflecting a 4.8 p.p. rise compared to the same period in 2023. While occupancy has yet to fully recover to pre-pandemic levels, the steady upward trajectory suggests continued improvement as international travel normalizes."

Carlos also mentioned that "the ARR has reached an impressive 4,154 baht, marking a 6.3% YoY increase and a remarkable 22.7% above pre-pandemic figures, largely driven by the high-end hotel segment."

The first half of 2024 also witnessed the addition of seven new hotels in Bangkok, contributing 1,631 rooms to the market, primarily in the midscale and economy segments. This brings the total number of hotel rooms in central Bangkok to 83,194. According to Carlos, "Looking ahead, the second half of 2024 is poised for further growth, with an additional 5,246 rooms expected to be added in central Bangkok, representing an 8.4% year-over-year increase."

As the year progresses, Bangkok's foreign arrivals are on track to approach full recovery, potentially exceeding 20 million, particularly during the high season in the fourth quarter. Carlos expects airlift capacity to return to pre-pandemic levels by year-end, with over 100,000 international flights landing in Bangkok. While the recovery of the Chinese market may be gradual due to economic challenges, the lifting of visa requirements for several key markets, including China, India, and Taiwan, is expected to further boost inbound tourism.

Hotel ARRs are projected to stabilize between 4,150-4,250 baht, with occupancy levels likely to rise to 75-77% as foreign arrivals increase. Carlos anticipates that "high-end and luxury hotels in prime locations such as Sukhumvit, Siam, and Riverside are expected to experience stronger performance, driven by both business and leisure travelers." Additionally, demand for business-oriented hotels near central business districts and airports is expected to grow, supported by an increase in MICE (Meetings, Incentives, Conferences, and Exhibitions) activities.

Despite the optimistic outlook, Carlos cautions that challenges such as rising operational costs and increased competition persist. To maintain a competitive edge in this dynamic market, hotels must continue to innovate and adapt to evolving market demands.