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Thailand’s Hotel Business Operator Sentiment Index for January 2026 Indicates Pessimism and Flat Growth for the Year

by Nikhil Prasad

Key points

  • The Hotel Business Operator Sentiment Index for January 2026, compiled by the Bank of Thailand in partnership with the Thai Hotels Association (THA), underscores industry sentiment following a seasonally slow start to the year.
  • While four-star and higher hotels anticipate growth in long-haul markets such as Europe and the Americas, three-star and economy-oriented properties, which traditionally rely on short-haul traffic (excluding China), foresee stagnation in demand.
  • For the period 1 January–15 February 2026, Thailand recorded a 7–10 % year-on-year decline in international tourist arrivals, partly attributed to slower short-haul travel amid safety and economic concerns—even as projections by government planning agencies aim toward around 35 million international visitors in 2026.

Thailand Hotel News: Thailand’s hotel sector enters 2026 with a cautiously optimistic yet guarded outlook, as operators forecast largely flat foreign visitor numbers compared with 2025, weighed down by persistent safety perceptions and stiff regional competition even as long-haul demand shows promise. The Hotel Business Operator Sentiment Index for January 2026, compiled by the Bank of Thailand in partnership with the Thai Hotels Association (THA), underscores industry sentiment following a seasonally slow start to the year.

Most Thai hoteliers are anticipating that 2026 will be a flat year for business
Image Credit: Thailand Hotel News

Based on survey responses from 99 hotel operators collected between 13–31 January 2026, the index reveals that total international arrivals are expected to remain broadly unchanged year-on-year. While four-star and higher hotels anticipate growth in long-haul markets such as Europe and the Americas, three-star and economy-oriented properties, which traditionally rely on short-haul traffic (excluding China), foresee stagnation in demand.

Safety and Image Concerns Weigh on Competitiveness

A core theme emerging from hoteliers’ forecasts is the impact of Thailand’s lingering negative safety image on prospective visitors and overall competitiveness. According to industry respondents who spoke to Thailand Hotel News, perceptions of safety are dampening short-haul demand and could undermine tourism performance in the face of more attractively priced regional destinations. This caution aligns with broader tourism statistics showing variance in arrival patterns, particularly among key markets.

The sentiment mirrors recent tourism data showing a mixed recovery trajectory. For the period 1 January–15 February 2026, Thailand recorded a 7–10 % year-on-year decline in international tourist arrivals, partly attributed to slower short-haul travel amid safety and economic concerns—even as projections by government planning agencies aim toward around 35 million international visitors in 2026.

Occupancy Trends and Operational Challenges

Hotel occupancy figures in early 2026 reflected uneven performance across segments and regions. January occupancy averaged around 77 %, with four-star and above hotels reporting slight growth, while the national forecast for February sat near 73 %. Regional disparities emerged, with the South outperforming other areas, buoyed by major events and festivals attracting domestic and foreign visitors.

Operationally, labor shortages intensified in several regions, particularly the East, affecting service delivery quality even where capacity remains sufficient. These workforce challenges compound other structural concerns, such as infrastructure bottlenecks and rising operational costs, which are seen as constraints for smaller properties.

Quiet hotel lobbies are going to be a common sight in 2026 across Thailand
Image Credit: Thailand Hotel News

China and Short-Haul Recovery Remains Key Focus

Despite overall flat outlooks, the Chinese market continues to draw attention. January data pointed to significant year-on-year declines in Chinese arrivals, though recovering demand during the Chinese New Year period provided a near-term uplift. Hoteliers see the Chinese segment—and broader short-haul recovery—as critical to achieving full-year targets, underscoring the need for sustained promotional and safety-confidence measures.

Policy Imperatives and Industry Calls to Action

In response to competitive pressures, industry leaders are advocating for enhanced destination safety messaging, tourism stimulus initiatives, and infrastructure improvements that could reinforce Thailand’s appeal, especially to quality and high-yield travelers. Efforts such as targeted marketing campaigns and safety monitoring infrastructure are underway, though hoteliers stress that clarity, consistency, and tangible enhancements are crucial to restoring confidence among global travellers.

Looking ahead, hotel operators see the potential for selective segments—particularly premium and long-haul feeder markets—to drive growth, while acknowledging that broader structural initiatives remain essential to sustainably boost Thailand’s global tourism competitiveness in 2026.

Reference:

https://www.bot.or.th/content/dam/bot/documents/th/thai-economy/econ-publication/business-sentiment-index/bsi-reports/HSI-2569-01.pdf

https://www.bot.or.th/th/thai-economy/econ-publication/hsi-hotel-business-operator.html

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