Hospitality of Thailand
Thailand is one of the most attractive tourist destinations in Southeast Asia. It grabs 21st position in the best country overall according to US news reports and world news. Among ASEAN countries, Thailand is the largest tourist destination. Thailand’s hospitality, starting from cheap lodges to Luxury hotels, there are always several options to choose for staying.
Contribution of Tourism
The tourism industry plays a significant force in assessing the performance of the hospitality industry of any country. Thailand’s tourism industry is also very promising, as the country is one of the largest tourist destinations across the globe.
- In December 2019, revenue from the tourism industry reached 62 billion US dollars in comparison to 58 billion US dollars, i.e., 6.89% growth rate YoY.
- The revenue of 62 billion US dollars in December 2019 is an all-time high since December 1960 (base date after which recording of the annual revenue had been started).
The national economic council and social development council estimated that about 20% of the GDP of Thailand comes from tourism in 2019, which is expected to 30% of the GDP by the year 2030. Being a popular tourist destination, Thailand has also attracted a lot of foreign investors to invest in the hospitality industry, which also seeks a good business attraction.
Opportunities for Startups in the Hospitality Industry
The hospitality industry has enormous opportunities, and it is considered as one of the broader service industry.Following are some significant sectors where you can start SMEs or Startups:
- Food and drinks
- Travel and tourism
Today people of Thailand are well computer literate, and therefore any startups whose marketing can reach to Internet generation; can get easy success. Tech-based startups in Thailand are booming, and there are several credit guarantee program and accelerators are available for assistance.
Opportunities in the Accommodation sector
Accommodation is generally considered as a temporary stay and is related to the tourism industry where people book for trips or holidays and need lodging. Here you can have ample opportunities for startups in accommodation, whether in a traditional way or along with innovative ideas. You need to get a special permit to do business in accommodation services.
The following are some facts that show the potential growth and contribution of the accommodation segment in the hospitality of Thailand.
- As per the latest released data, total revenue in this segment is 1351 million US dollars, with a total number of users as 8.1 million in 2020.
- There is an expectation of an annual growth rate of 3.9% at CAGR (2020-2023), which will results in a total market volume of 1514 million US dollars by the end of the year 2023.
- 7% is user penetration in 2020, and the expectation is to hit 13.0% by the end of the year 2023.
These data are promising, and Thailand is one of the few countries in Asia that has capabilities to achieve the expected target once the market stabilizes.
Bed & Breakfast
Commonly known as B&B aresmall establishments that allow people to stay overnight with breakfast in the morning. In these types of establishments, the owner lives on the property, in general.
These are one of the most common accommodations which allow any number of days to stay for their guest. Hotels also provide room service, housekeeping, eating, and drinking facilities.
These are more or less similar to hotels but with motor parking and garage facilities. It is situated beside the road in general.
A type of hotel but with a broader range of facilities that includes shopping, playing, relaxing, and many more. If you have a considerable sum of investment by any means, you can enter into the resort business.
These types of accommodation are cheaper generally, where multiple guests share a room as well as other amenities. If you are going to start your business with a little investment, you can think about the lodge.
These are fully furnished apartments with kitchen facilities. They allow short as well as long term stays. These days these accommodation facilities attract a lot of startups in Thailand.
Opportunities in the Food and Beverages sector
The following data can see potential growth and contribution of the food and beverage sector in the hospitality of Thailand
- The total revenue in this segment is 393 million US dollars in the year 2020.
- The expected annual growth rate of 11.3% at CAGR (2020-2024), which will results in a total market volume of 602 million US dollars by the end of the year 2024.
- 9% is user penetration in 2020, and the expectation is to hit 17.2% by the end of the year 2024.
Opinions are generally divided on the issue of keeping the food & beverages sector in hospitality. However, these sectors give people a way of spending during their leisure time, and therefore you can keep them under the hospitality industry.
Tea and coffee shops
Whatever you do in the food and drink sector, you must have USP (unique selling proposition), and when it comes to this sector, nothing is better than delicious food and drinks. In short, your tea and coffee must have a different test. With a small investment, this is the best opportunity for startups.
A traditional business idea of this sector, but it depends upon if you have ideas to impart uniqueness in this business.
Bars and Cafes
Again, one of the most favored startups in the hospitality sector, and it needs little investment.
Thailand is a country of tourism whose 20% of GDP depends upon this sector. Investing in a night club as a startup is beneficial, but you should have your unique ideas. It requires a relatively significant investment.
This part of the food & drink sectors has a lot of space for innovation, and you can have your startups with unique ideas.
Accommodation and Food &Beverage are the significant sectors of hospitality in Thailand, where startups have ample opportunities to excel.