Search

The hotel business is expected to continue growing well during 2019-2021, with foreign and Thai tourists expected to expand

The hotel industry will continue to see improving conditions over 2024 to 2026, helped by ongoing government support for the industry and the annual foreign arrivals returning close to their pre-pandemic level of 38-40 million by 2025. Meanwhile, domestic tourists are also expected to be making 200 million trips annually by 2025

Hotel business in downtown Bangkok continues to grow through the period 2019-2021 in line with growth in the number of visitors to the capital, especially to the city center. It is forecast that in these three years, the number of foreign and domestic tourists staying in hotels in Bangkok will rise by 4% and 7% per year, respectively, and this will then help to lift the occupancy rate for hotel accommodation in downtown Bangkok to 79-80%, compared to a national occupancy rate of 71.5-72.5%.

The retail rental market is expected to gradually recover from 2025 to 2027. This recovery will be driven by a slow rebound in consumer purchasing power due to a weakening domestic economic outlook impacted by ongoing escalation of global trade tensions. Nevertheless, well-designed sites in high-potential downtown locations that are popular with tourists and that serve office workers in the CBD will continue to see steady demand

The retail rental market is expected to gradually recover from 2025 to 2027. This recovery will be driven by a slow rebound in consumer purchasing power due to a weakening domestic economic outlook impacted by ongoing escalation of global trade tensions. Nevertheless, well-designed sites in high-potential downtown locations that are popular with tourists and that serve office workers in the CBD will continue to see steady demand

The retail rental market is expected to gradually recover from 2025 to 2027. This recovery will be driven by a slow rebound in consumer purchasing power due to a weakening domestic economic outlook impacted by ongoing escalation of global trade tensions. Nevertheless, well-designed sites in high-potential downtown locations that are popular with tourists and that serve office workers in the CBD will continue to see steady demand

The market for food and beverage business is expected to expand by some 4.0-5.0% annually over 2024-2026 to a total value of THB 275.0-300.0 billion. Demand will benefit from: (i) gradual economic recovery over 2025 and 2026; (ii) the increasing number of international tourists; and (iii) consumer behavior has shifted towards dining out more frequently. On the supply side, growth will come from: (i) a more efficient logistics system; (ii) the increasing use of food delivery apps equipped with new; and (iii) growth in both large and small retail sites in and around Bangkok and in the provinces.

Thai medical devices sector should see average annual growth of 8.0-10.0%. This outlook is supported by: (i) government policy that aims to establish Thailand as both a medical hub and a regional center for the export of medical devices by 2020; (ii) rising rates of ill-health in the Thai population (especially from heart disease, stroke, cancer and diabetes), which, together with the steady ageing of the population, is fueling increased demand for the use of modern, high-tech diagnostic equipment; (iii) the increasing trend for non-Thais (both expatriates and medical tourists) to use Thai medical services as confidence in the standard of care rises; and (iv) the plans put in place by healthcare providers to expand and/or build new hospitals.

Global: Less gloomy outlook, but still see signs of a slowdown

Regional Economic and Policy Developments in April