Arrivals show steady m-o-m recovery as at YTD December 2022

• According to Airports of Thailand, Suvarnabhumi and Don Mueang airports welcomed approximately 9.8 million international passengers and 28.8 million domestic passengers as at YTD December 2022, registering y-o-y growth of 1472.3% and 141.0% respectively. As a result, the total number of passenger arrivals improved by 207.3% as at YTD December 2022 when compared to the same period in 2021.
• In 2022, the three biggest source markets to Bangkok were Malaysia, India, and Singapore, combining to make up 60% of all international arrivals into Bangkok. China, the biggest pre-pandemic source market, accounted for only 5% of international arrivals into Bangkok.

Bangkok welcomes three additional hotels in 4Q22

• Bangkok saw the opening of three new properties in 4Q22 — the 582-key Chatrium Grand Siam Bangkok, the 106-key ASAI Sathorn 12, and the 102-key X2 Vibe Bangkok Udomsuk Station.
• Due to a large number of projects being postponed with COVID-19, 2023 is expected to see the largest supply being added to the market, at 9,587 keys. Between 2023 and 2025, 14,793 keys are expected to open.

RevPAR of luxury hotels improves by 476.2% y-o-y

• As at YTD December 2022, luxury hotels in Bangkok registered a y-o-y improvement in performance, with revenue per available room (RevPAR) increasing by 476.2% y-o-y to THB 3,565. This can primarily be attributed to growth in both occupancy and average daily rate (ADR), rising by 36 percentage points and 70.0%, respectively, during the same period.
• Similarly, midscale and upscale hotels in Bangkok experienced a y-o-y increase in RevPAR of 206.4% to THB 946 and of 264.1% to THB 1,789, respectively, as at YTD December 2022. Like Bangkok luxury hotels, the improvements in both segments are attributed to growth in both occupancy and ADR.

Outlook: Performance in 2023 to close gap with pre-COVID levels

• Mainland China, the biggest source market to Bangkok pre-COVID-19, has lifted entry restrictions and eased quarantine regulations in January 2023. However, with limited flights and expired Chinese passports having to be renewed, Bangkok is only expected to start benefitting from 2Q23 onwards.
• With hotels that were closed in Bangkok during the pandemic fully re-opening all their rooms in 1Q23, the inflation rate is expected to start normalising from Q2 onwards. Occupancy and ADR are expected to close the gap with pre-pandemic levels gradually throughout 2023, and 4Q23 should be the first high season Bangkok records in three years.