Despite the Thai tourism sector facing a hiccup, Koko Global Hospitality (Thailand) Co Ltd (KGH), a local hospitality management firm and operator of the hotel chain Kokotel, sees an opportunity with domestic travellers as it looks to expand its portfolio.
.
Rei Matsuda, founder and chief executive of KGH, said the market environment is quieter than expected during the low season.
.
He said he hopes the sector will recover at year-end when the high season returns.
.
From Jan 1 to June 8, Thailand welcomed more than 15 million foreign visitors, a 2.87% drop year-on-year, with Malaysia crowned the top source market, and China dropping to No.2, according to the Economic Tourism and Sports Division of the Tourism and Sports Ministry.
.
Chinese visitors account for roughly 15% of hotel guests, and the company has identified visitors from India and the Middle East as growing markets, said Mr Matsuda.
.
However, KGH does not rely on any particular nationality, he said.
.
The company's focus during this period is on efficient operations, said Mr Matsuda.
.
Despite the slowdown in arrivals, KGH expects to maintain its occupancy rate this year at 75% of properties nationwide and 80% in Bangkok.
.
Mr Matsuda said some Thai holidaymakers may shift from plans for an overseas trip to a domestic vacation, similar to the behaviour of Chinese travellers.
.
Thais account for 15-20% of hotel guests at KGH properties, though some locations such as Chiang Rai, Hua Hin, Pattaya and Chiang Mai may see a higher proportion of Thai hotel guests.
.
During this turbulent period, the company sees an opportunity as more independent property owners may seek management services, said Mr Matsuda.
.
With a sluggish economy, he said the three-star hotel segment was a promising opportunity for growth.
.
While Bangkok has a glut of three-star hotels, presenting challenges for many operators, areas such as Phuket, Krabi, and Khao Lak in Phangnga still have room for growth opportunities, said Mr Matsuda.
.
As of May 31, KGH manages 41 hotels in Thailand, Japan and the Philippines.
.
This includes the direct management of 34 hotels, with 10 currently in the pre-opening phase, and consultancy services for seven hotels, totalling more than 2,500 rooms.
.
Mr Matsuda said the company wants to manage 100 hotels by 2026. Around 75% of hotels are located in Thailand, 20% in the Philippines, and 5% in Japan.
.
The company has identified business opportunities in the Philippines, as the market landscape resembles that of Thailand. With a notable presence of three-star hotels lacking sufficient management options, this situation could attract hotel management firms.
.
The company also aims to manage 1,000 hotels across 10 countries by 2035, said Mr Matsuda.