THAILAND

Eating out market and development in Thailand

Eating out market and development in Thailand

Growth of Hotel Industry in Thailand

From the year 2000, Tourism in Thailand was targeted as agrowth industry on the new millennium, and inter-national tourists arrivals exceeded 10 million persons for the first time during 2001.

Foreign tourists gradually increased in the second half of 2005 through 2006, with ashort interruption due to the military coup in mid September(Edwards, 2006). It had been estimated by private sector that the number of foreign tourist arrivals would reach 12.5 million persons at the end of 2006. The continuous growth of international tourists during past two decades spurred the new investment, and stimulated the construction of new hotels and resorts in Thailand. Statistics from the Office of SME Promotion revealed that there were total number of 4,637 hotels in Thailand, during the year 2004.

Several small hotels and resorts along Andaman coastline were totally destroyed by Tsunami, and several resorts were rebuilt and reopened at the end of last year. Therefore, it was estimated that in 2006, there were approximately 4,800 hotels located all over Thailand with approximately 285,000 guest rooms.

The southern region was the most popular tourist destination and had more than 1,850 hotels and resorts or 39.5 %, following with over 780 hotels or 16.8 % in the eastern coast area, and 755 hotels or 16.2 % in central and western regions. Northern region shared 15.0 % with approximately 690 hotels, while there were only 280 hotels in the northeastern provinces or only 6.0%(Adams, Kwansa,2006). Bangkok had approximately 315 hotels or 6.8 % of the total number of hotels in Thailand.

Though, hotels in Bangkok shared only 6.8 % of total number of hotels in Thailand, but Bangkok had proved to be the top revenue earner in the tourism industry with the annual income of over Baht 330.0 billion per year. Phuket, which was the most popular beach destination in Thailand , ranked second in revenue earnings from foreign tourists, having income of Baht 90.0 billion per year, followed by Pattaya, eastern seaboard beach destination with the annual earning of Baht 51.0 billion, and Chiangmai, the northern tourist capital having annual revenue of Baht 46.0 billion respectively.

SMEs contribution in Hotel and Restaurant Industry

Hotel and restaurant business played the most significant role in Thai Tourism Industry. From the statistics of Office of SME Promotion, hotel and restaurant sector contributed 18.5 % or Baht 349.91billion out of the total amount of Baht 1,890.87 billion in the Service sector. Further study showed that the biggest contribution was from SME equivalent to Baht 325.29 billion or 93.0 % and the Large enterprise shared only 7.0 % or Baht 24.62 billion(Jensen,2007). The above figures once again emphasize the significance of SME enterprises in the economic development of the country especially in the tourism industry. SME enterprises in the Hotel and Restaurant sector in Thailand employed over 600,000 employees or 80 % of the total workforce in the hotel ...