Thailand’s Hotels Shift Focus to Domestic Travelers

Foreign Visitor Numbers Decline

Thailand’s tourism industry is navigating a downturn, with a 2.87% drop in foreign arrivals from January to June 2025 compared to the previous year. Koko Global Hospitality, operator of the Kokotel hotel chain, is seizing the moment to target Thai travelers to offset the slump.

Domestic Market Gains Priority

Thais Fill Tourism Gap

Rei Matsuda, KGH’s founder and CEO, noted a quieter-than-expected low season but remains optimistic for a high-season recovery. With Thai guests comprising 15-20% of bookings, and even higher in destinations like Chiang Mai and Pattaya, domestic tourism is a key focus for sustaining occupancy.

Stable Occupancy Rates Targeted

75% Nationwide, 80% in Bangkok

Despite the dip in international visitors, KGH aims to maintain a 75% occupancy rate across its properties nationwide and 80% in Bangkok. Efficient operations are central to this strategy, ensuring resilience in a challenging economic and tourism environment.

Diverse Guest Demographics

Growth from India and Middle East

Chinese tourists, who account for 15% of KGH’s guests, have been overtaken by Malaysians as the top market, while Indian and Middle Eastern visitors are on the rise. Matsuda emphasized that the company avoids over-reliance on any single nationality to diversify its customer base.

Expansion Opportunities Emerge

Three-Star Hotels Show Promise

The sluggish economy has opened doors for KGH, as independent property owners seek professional management. Matsuda highlighted growth potential in the three-star hotel segment, particularly in Phuket, Krabi, and Khao Lak, despite an oversupply in Bangkok.

Current Portfolio and Goals

Managing 41 Hotels Regionally

As of May 2025, KGH oversees 41 hotels across Thailand, Japan, and the Philippines, with 34 directly managed and seven under consultancy, totaling over 2,500 rooms. The company plans to expand to 100 hotels by 2026, with a strong focus on Thailand and the Philippines.

Long-Term Global Ambitions

1,000 Hotels by 2035

Looking ahead, KGH aims to manage 1,000 hotels across 10 countries by 2035, capitalizing on opportunities in markets like the Philippines, where underdeveloped three-star hotel management mirrors Thailand’s landscape. This vision underscores KGH’s commitment to strategic growth and adaptability.