Speaking about the hotel industry, Mrs. Pikun Srimahunt, Senior Executive Vice President & Chief SME Banking Officer of Siam Commercial Bank noted that the tourism industry continues to generate significant income for Thailand. The booming industry is critical for the development of economic growth, employment, and revenues, with people at the community level playing increasingly important roles. SCB sees the tourism industry continuing to grow steadily from local people travelling throughout the year in both major and secondary provinces as a result of the Thailand Tourism Authority’s campaign, and from increasing foreign tourist arrivals. SCB estimates that foreign tourists should reach 42 million visitors in 2020, representing growth of 4.6% yoy. This growth will come from India, ASEAN, east Asian countries, and China. The hotel business is an integral part of raising the standards of Thailand’s tourism industry. Having realized the strong business potential for mid-sized and small hotels, SCB has focused on the hotel business, which will receive prioritized access to support to enable businesses to remain strong with sustainable growth. The industry focus links every aspect of the hotel ecosystem, enabling entrepreneurs to operate their businesses efficiently from the start, while preparing them to adapt to a changing business environment and tackle challenges before it is too late.
Trends in choosing accommodations have changed. One of the most evident observations that will provide opportunities for mid-sized and small business owners is that tourists are willing to pay more for unique and memorable experiences. Sought after hotels and services will be those that are unique and suit guest personalities. This trend will require boutique hotels to raise their standards, improve their environment, and add services to create unique selling points. In addition, entrepreneurs should embrace technology to help develop management systems, marketing programs, and new sales channels. Entrepreneurs in mid-sized and small hotel businesses will be required to adapt new ideas and transform traditional practices, such as relying on online travel agents for sales. They should also seek new business models. Competing by cutting price can backfire, as hotels will be forced to lower their service quality and lose revenue, making it difficult to maintain business. Hotel owners should adjust their attitudes and realize that the hotel business should no longer be seasonal. However, they should lay plans and develop their environment to attract Thai tourists to stay longer and engage in more activities throughout the year. It is expected that Thailand’s hotel industry nationwide this year will show an average occupancy rate of 71-73%.
Mrs. Pikun Srimahunt added that even with these opportunities, entrepreneurs are still facing competition arising from increasing supply, which has been accelerating. Areas seeking permission for hotel and resort construction nationwide expanded by 12% on average during 2016-2018. However, the SCB Hotel Ecosystem Network, comprising Tourism Authority of Thailand, Association of Thai Travel Agent, Thai Hotel Association and The Department of Provincial Administration, the Department of Public Works and Town & Country Planning, are ready to provide full support enabling mid-sized and small hotels to be successful. The SCB The Dots: Hotel training course will strengthen the new generation of hotel owners to help them overcome obstacles to achievement. Moreover, the Bank has also prepared an SCB Hotel Solution that can fulfill demands for products and services for entrepreneurs. The solution offers loans for refinancing and renovation, with interest rates starting from 4% (conditions applied) to a maximum amount of 100 million baht. Loans can be repaid according to season for up to 10 years. Qualified borrowers are required to have a hotel business license and no less than 5-years experience in the hotel business. The solution will also accommodate credit card payments via an Online Payment Gateway with free entry and annual fees. Last but not least, the solution also includes Google My Business service that will enable hotels to increase their presence on search and navigation engines.
Interested hotel business operators can contact the Bank for more details at 0-2722-2222 or visit https://scbsme.scb.co.th/
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