Amidst Slowing Thai Tourism, Kokotel Expands Focus on Local Market

Photo courtesy of Bangkok Post

As Thailand's tourism sector experiences a slowdown, Koko Global Hospitality (Thailand) Co Ltd (KGH), the operator of the Kokotel hotel chain, is strategically focusing on local travellers to sustain growth. Despite the dip in international arrivals, the company is leveraging this period as an opportunity to expand its influence in the hospitality market.

Rei Matsuda, Chief Executive of KGH, views the current slowdown as a chance to strengthen operations. “The market is quieter than expected during the low season. But we hope for a rebound by year-end when the High Season kicks in,” Matsuda stated, optimistic about future prospects.

From January 1 to June 8, Thailand recorded over 15 million foreign visitors, marking a 2.87% decline compared to the previous year. According to the Tourism and Sports Ministry, Malaysia remains the top source market for tourists, with China following as the second largest. Chinese tourists currently represent about 15% of KGH's clientele, with growing interest from Indian and Middle Eastern guests.

Nevertheless, Matsuda emphasizes a diverse approach, stressing that KGH is not heavily dependent on any single nationality. “We’re focused on efficient operations and adapting to changing trends,” he added. KGH aims to maintain a 75% nationwide occupancy rate this year, with Bangkok properties expected to reach 80%. Local travel is also significant, as Thai guests constitute 15-20% of Kokotel’s customer base, with popular destinations like Chiang Rai, Hua Hin, Pattaya, and Chiang Mai attracting higher shares of domestic tourists.

Matsuda notes a trend among Thai holidaymakers opting for domestic travel over international trips, paralleling trends seen in China. This strategic shift comes as KGH targets collaboration with independent hotel owners who might seek professional management amid the economic slowdown. Growth is particularly anticipated in the three-star segment outside of Bangkok, where hotel supply is more balanced.

KGH currently oversees 41 hotels spanning Thailand, Japan, and the Philippines. The portfolio comprises 34 operational hotels, 10 pre-opening, and seven under consultancy, totalling over 2,500 rooms. The company’s ambitious plans include managing 100 hotels by 2026, with 75% located in Thailand and the remainder across the Philippines and Japan. Looking further ahead to 2035, KGH aims to manage 1,000 hotels across 10 countries, underscoring its commitment to expansive growth within the region.

  Adapted by ASEAN Now from The Thaiger 2025-06-12