Nov. 29–Accor SA, a Paris-based hotel management chain, is confident enough in the long-term prospects of Thai tourism that it plans to sign at least 10 new management contracts here each year.
Some tourist destinations including Bangkok face a hotel oversupply, but Accor still believes many non-branded hotels will shift to hire branded chains thanks to their strong marketing and distribution networks. Most non-branded hotels in Thailand rely on online travel agents and wholesalers, which charge high commission fees.
This means they suffer when business dips or they face uncontrollable factors.
Patrick Basset, Accor’s chief operating officer for Thailand, Vietnam, South Korea, Cambodia, Laos, Myanmar and the Philippines, said only 20% of hotel rooms in Southeast Asia were managed by branded hotel chains compared with 70% in Europe and almost 100% in the US. That means Accor has much room to grow here.
Thai tourism has recovered quickly in the past from Sars, massive flooding and political conflict, he said.
“Thailand remains the best tourism destination in Southeast Asia,” Mr Basset said.
He said Accor signed 14 new management agreements this year despite the political turmoil, as the hotel owners remained positive about the long-term tourism outlook.
It opened four new hotels this year, and five more are in the pipeline for 2017.
Accor is optimistic about Thai tourism next year after seeing signs of recovery this month. Its November reservations rose by 7% month-on-month.
The average occupancy for all Accor hotels here is expected to rise by three to five percentage points next year from this year’s estimated 66%. Average occupancy for hotels in Bangkok is 61% and Phuket 70%.
Mr Basset said the main challenge for Thai tourism was how to develop infrastructure to support tourist growth such as international airports.
Accor Thailand has the second-highest growth in Asean after Indonesia. It operates 54 hotels in Thailand with 12,827 rooms, while Accor Indonesia has 80 hotels, with 80 more properties in the pipeline.
