Banyan Tree Koh Samui recorded a strong performance in January, with the average daily rate reaching 33,000 baht per night. The low season could be painful for Thai hotels because of pressures caused by the war in Iran.
On Feb 28, when the US-Israeli war with Iran began, Thailand's tourism industry was looking forward to reaping the benefits of the final month of the high season.Disruptions to air travel hobbled the industry in the first few weeks, as Middle Eastern airlines could not operate as usual. As the conflict dragged on and hindered the global tourism market, airlines worldwide reduced services as jet fuel prices more than doubled.
Hotels felt the sting with many tourists unable to travel, prompting operators to be more cautious ahead of the low season.
Despite a record-breaking net profit of 1.9 billion baht in the first quarter for SET-listed Asset World Corp (AWC), it represented marginal year-on-year growth of 0.9% as Thai tourism was affected by the crisis in March.
The company's hotel and commercial portfolios still expanded, recording 6.77 billion baht for the quarter, with hotel and hospitality reaping a benefit from the high season, posting revenue growth of 12% to 4 billion baht and an 8.6% gain in earnings before interest, taxes, depreciation and amortisation (Ebitda) to 1.6 billion baht.
