The Songkran Festival next month will help push occupancy rates up further because travellers are in

The hospitality outlook has been positive, even as the baht has strengthened. Its appreciation has still not had any impact on the industry. Currencies in the region have been marching in the same direction, so Thailand has not lost any competitiveness.
The results for last month released yesterday support Surapong's forecast. Occupancy for the whole country increased 12-13 points to 75-80 per cent. The South enjoyed the fastest growth and highest occupancy rate - up 14 points to 92 per cent - while the North rose 9 points to 84 per cent and Bangkok 13 points to 80 per cent. The smog that is blanketing the North is not expected to have any impact on its occupancy rate.
Rooms are selling fast on the continuing recovery in foreign-tourist arrivals. In February, arrivals flight hotel car surged 25 per cent year on year to 2.32 million. This was up strongly from January, when arrivals increased 12 per cent to 2.24 million.
The Songkran flight hotel car Festival next month will help push occupancy rates up further because travellers are in a good mood, as the country is relatively free from political tension. First-car buyers will enhance consumption by driving to nearby cities. Room rates are also on the rise. Some operators already increased their rates last month, but others left them unchanged despite high occupancy rates to help keep their business dynamic. However, the uptrend will be even clearer in the high season at the end of this year, with a rise of 5-10 points projected.
The capacity of facilities in the country to cope with the growing number of foreign tourists is a concern, especially airports such as the one in Phuket, which is now heavily congested. Clearly, nearby Krabi Airport will cash in by serving the overflow from the island province.