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Bangkok Hotel Occupancy Rates 2013

April 17, 2014 12:00 am Comments Off

The number of international tourist arrivals to Thailand in 2013 was a record 26,556,397 increasing by 19.8% Y-o-Y (year on year).

The number of international passengers disembarking at all AOT-managed airports increased by 14.7% Y-o-Y to 23,336,162 in Bangkok and by 25.8% Y-o-Y in Phuket. The largest feeder market was Chinese with a 17.5% share of total international tourist arrivals to Thailand in 2013. The number of Chinese arrivals grew by 69.1% Y-o-Y.

Overall in 2013, strong arrival numbers resulted in rising occupancy rates, despite the number of rooms in Bangkok growing by about 10% Y-o-Y. We also saw a fall in the number of new building permits being issued for new hotels.

We saw that room rates finally started to rise after being flat for five years. The performance of hotels of all grades in Bangkok had improved from last year. The average occupancy rate of hotels of all grades in Bangkok rose to 75% from 70% in 2012. The Average Daily Rate (ADR) was also on the rise at around THB 3,200 which was an increase of 7.0% Y-o-Y.

Source: CBRE (Thailand)

Personal Income Tax rates reduced effective 2013

March 6, 2013 12:00 am Comments Off

On 18 December 2012, the Thai cabinet approved reductions of the personal income tax rates, to take effect at the beginning of the fiscal year 2013.

The previously five income tax brackets are being expanded into now eight brackets by adding tax rates of 5%, 15%, and 25%. The top marginal tax rate decreases slightly, from previously 37% to now 35%. This applies for net taxable income of THB 4 million or more. The tax exemption for low salaries of less than THB 150,000 remains as it is.

This is the first major change of PIT rates for approximately 20 years. According to the Bangkok Post, details of the new tax rates are as follows:

Accordingly, the changes will reduce tax rates for individual taxpayers in all brackets and are expected to cut the government’s tax revenue by THB 25 Billion in the fiscal year 2013. The reduction is aimed at increasing consumption and boosting the domestic economy in the long run. The opposition Democrat party, however, criticized the changes as being tax cuts for the rich.

The income tax overhaul will also allow married couples to file their tax returns separately, a move that will save households money, but will trim around THB 7 Billion from government revenues.

A legislative act to amend the Revenue Code will have to be passed by the parliament within March 2014, so that the new rates can take effect for the 2013 tax return to be filed in 2014.