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What coronavirus? Bangkok luxury hotels push new openings despite lack of foreign tourists

  • High-end hotels are gearing up for business in Thailand’s capital, with the operators bullish about their appeal even amid the pandemic
  • The domestic tourism industry has its hopes on a travel bubble with China and the continuation of promotions for locals, an analyst says

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The Capella Bangkok opened in October and has the highest rack rates in the capital, starting at 17,500 baht (US$579) before tax. Photo: Capella Bangkok
Pandemic-related travel restrictions have plunged Thailand’s tourism industry into crisis – but the doom and gloom has not stopped new hotel openings in Bangkok, particularly at the high end of the market.

There were at least a dozen high-profile hotel openings in 2020, with one recently rebranded property offering club rooms for as little as 1,222 baht (US$40) the week before Christmas. Others like Capella Bangkok – which opened in October and has the highest rack rates in the capital, starting at 17,500 baht (US$579) before tax – are bullish about their appeal.

“The premiums for what we provide are not a deterrent,” said John Blanco, Capella Bangkok’s general manager.

At least one hotel slated for launch last year, the business-oriented Solaria Nishitetsu, decided to postpone its public opening and is instead offering packages for alternative state quarantine (ASQ) travellers undergoing their 14-day isolation periods.

Paying for ASQ is a requirement for all foreigners coming into Thailand. Some travellers enter on the government’s Special Tourist Visa, but take-up of the programme has not been strong: Thailand counted just 3,065 tourist arrivals in November versus the 3.5 million that arrived in the same month in 2019, before the coronavirus swept across the world.

In a report, the Kasikorn Bank Research Centre projects an annual total of 4.5 million to 7 million arrivals for this year, depending on factors including a successful Covid-19 vaccination programme and continued political and social stability in Thailand – a sharp fall from the 39.8 million arrivals in 2019, and down from 6.9 million last year.

Amar Lalvani, the CEO of Standard International sees Bangkok as “the perfect place for our Asia flagship” hotel. Photo: Handout
Amar Lalvani, the CEO of Standard International sees Bangkok as “the perfect place for our Asia flagship” hotel. Photo: Handout
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