Minor International is expecting even stronger growth in 2024 with a boost by higher spending power from foreign tourists, backed by a recovery of Chinese travellers and an increase in Indian arrivals.
Thai tourism sees a sharp recovery in 2023, especially in the final quarter, from a temporary visa exemption for several countries including China, India and Taiwan to capture the celebration of Chinese National Holiday in October and also a year-end travel.
Mr. William Heinecke, Chairman of Minor International Public Company Limited (SET: MINT), noted that occupancy of MINT’s hotel business in Thailand has reached 75% and a year-on-year Average Daily Rate increased 10% in December 2023, which is higher than 2022 and pre-Covid.
With the Thai hotel sector doing so well in 2023, the Chairman said that MINT’s topline will show strong growth and will surprise everyone as RevPar for hotels in Thailand is expecting to show double digit growth in 4Q23. The positive trend should carry over to 2024 that will see even higher numbers from the recovery in the Thai economy.
The permanent waiver of Thai and China’s visa requirement that will kick off this March will also lead to a strong comeback of Chinese tourists, despite economic challenges in the country.
The Chairman said that the number of tourists inbound is not Thailand’s priority, but spending power is. He pointed out that during Covid, Thailand has more quality tourists than before amid higher costs and airfare. More importantly, data has shown that the spending power of tourists topped those in pre-pandemic years. He expected tourist arrivals in Thailand to be close to 2023, but with much more spending.
The government has been very proactive to stimulate the Thai economy, Mr. Heinecke said. This includes free visa, extending entertainment venue operating hours, tax cuts on alcoholic beverages and attracting foreign direct investment.
MINT’s topline in 9M23 is a new milestone for the company for a new record high, which should be even higher when including sales in the final quarter of the year. The company will continue making a historic high in 2024 if all plays in the Thai tourism industry favours.
“Tourism is a key driver of the Thai economy, and with the right initiatives, I’m confident we will see vigorous growth this year,” Mr. Heinecke added.
The hospitality giant expects to record a total of 780 hotels in its portfolio within the next three years from 530 hotels currently. This also includes three new hotels in Paris before the Olympics.
