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Hotels in Thailand Serve More Chinese Visitors Thanks to Krabi Airport

News Krabi International Airport, Thailand, has increased its capacity. Last year, the airport reached a new record and served two million passengers. The total amount of receipts reached US$2.4 billion – almost two times more than in 2010.

The growth has become possible mostly thanks to travelers from China, especially from Shanghai, Guangzhou, and Chengdu. Currently, regular and charter flights connect Krabi to 26 Chinese cities. At the same time, the share of traditional source markets, such Germany, Sweden, and France, decreases. The similar situation happens with other Thai beach resort destinations, such as Phuket, where the domination of Chinese visitors is clear. The data regarding the international arrivals only proves that. In 2014, the share of Chinese visitors in the international arrivals was 38%. The share grew to 61% in 2015 and to 66% in 2016. Last year, Krabi Airport served as many as 14,034 flights from Greater China.

Naturally, the growth of visitors made a positive impact on the performance of hotels in Thailand. The market-wide metrics of 2016 are the following: ADR reached US$124, and RevPAR estimated US$88.98. The revenue was growing despite a small decline in occupancy of 1.9% to 71.5%. The hotel supply of the region added 2% last year and is expected to add another 2-3% this year. In the end of 2016, 502 hotels with the total of 19,905 guest rooms were registered, but the portion of unregistered hotels is still high.

The further expansion of Krabi International Airport is currently under review. According to some plans, the airport might get its current two terminals expanded and the third terminal constructed. That would significantly expand the capacity of the airport that has already made Krabi one of the fastest growing tourist markets in Southeast Asia. In 2006, the airport served only 240,905 visitors, and in 2016 this digit increased to 2.03 million.


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