The Thailand expat forum for Travel, Lifestyle and Fun.

Mid

Indian hotel invasion nears
18/02/2012

Tourism and wedding markets the draw

About 20 large Indian hotel chains are expected to invest in Thailand within the next 3-5 years to benefit from the growing tourism industry, says Satish Sehgal, president of the Thai-India Business Association.

The Tourism Authority of Thailand (TAT) reports 1 million Indian tourists are expected to visit Thailand this year, a 20% increase from last year, generating income of 33.8 billion baht.

"All these Indian tourists are why businessmen want to set up hotels here," said Mr Sehgal, adding that incentives from the Board of Investment (BoI) also play a role in the decision.

Potential growth in the Indian wedding market also is a factor. With a population of 1.2 billion, India has the largest number of billionaires in Asia, said Mr Sehgal, adding that 300 million are in the emerging middle class or millionaires.

"This niche [the wedding market] was targeted by the TAT six to seven years ago and has become very successful," he said.

It costs 30-50 million baht to host a wedding, which is usually held for seven days and seven nights, with 300-500 people participating.

Mr Sehgal expects at least 100 weddings to be held in Thailand this year. Costs in India are 2-3 times higher for a wedding.

Mr Sehgal expects most of the 20 chains planning a local hotel will be interested in three- or four-star hotels with rates of 1,500 to 2,000 baht a night.

"I think Thailand already has a sufficient amount of five-star hotels, and the upper end will go to Samui and Phuket," he said, adding that Thailand now has seven or eight Indian-owned hotels.

But the wedding sector brings a new set of challenges such as customs declarations, as Indians tend to bring a large amount of jewellery and clothes with them.

"Visitors feel very uncomfortable about this. Gold prices in India are higher than in Thailand, so who would want to sell them here?" asked Mr Sehgal.

He pointed out Thai-owned restaurants have a good opportunity to invest in India, while Indian educational institutions are interested in investing in Thailand because it is difficult to enter universities in India.

"In the past, [parents] would send their children to study in the US and England, but now they arre looking at neighbouring countries," he said, adding many are studying in Singapore.

"We should take a serious look at this [education] market. But if Thailand wants to appeal to Indians, the medium of instruction should be English."

bangkokpost.com

__________________
"Keeping quiet while monks and other peaceful protesters are murdered and jailed is not evidence of constructive engagement." - Arvind Ganesan, Human Rights Watch.

"I think...I think it's in my basement. Let me go upstairs and check" - M.C. Escher

david44

The Cowboys are already in position

guyinthailand

one million to almost two million dollars for a wedding?

the dogcatcher

As long as they bring their whores with them and don't use ours.

nostromo

But Indians are dirt poor. Few rich people there could be a good segment to market Thailand to, but I see this article pointing to opening few 300 baht/night hotels.

Why is it that TAT seems to market Thailand to all the wrong people? Indians and Russians, who no one else wants. Indians do not bring any money and russians only bring crime.

terry57

No probs there but the Tuk Tuk drivers could be out of a job. The Indians have all but taken over the taxi industry in Australia.

Little bastards don't know where there going also.

Kurgen

That's almost 1/2 million cokes and 25 bar fines, bring on the good times.

Rural Surin

They do take their nuptials rather seriously, don't they?

guyinthailand

I think it should have said 3-5 million baht (that even sounds like too much)

FailSafe

I can see 30mil-50mil for a wedding party for 500 people- just rooms alone (assuming double occupancy, so 250 rooms x 7 nights x 10K per night at a 5-star- that's 17.5mil right there), then you have to add in lavish dinners and gifts, plus the associated wedding costs- that could get real pricey real fast.

__________________
There he goes. One of God's own prototypes. A high-powered mutant of some kind never even considered for mass production. Too weird to live, and too rare to die.
HST

nostromo

That would be for the ultra-rich. Middle class in India is poor compared to, say, Thailand.

FailSafe

^

I realize that, but the article mentions the rich as well, so they're probably taking their estimates from the highest end of the scale- of course you could put on a wedding considerably cheaper, but a high-end wedding for 500 people at a 5-star for 7 days could easily run you over 30mil in LOS.

Mid

GDP (current US$)

GDP, in current US$, is at purchaser's prices. It is the sum of gross value produced by every person in the economy plus any product taxes and minus any subsidies not included in the value of the products.

9th as of 2010[3]

Fact sheet on India - Wikipedia, the free encyclopedia

bushwacker

"We should take a serious look at this [education] market. But if Thailand wants to appeal to Indians, the medium of instruction should be English."

And we all know that Thailand is the hub of quality English teaching!!!!!

nostromo

There are about billion Indians. You can see the fact sheet you posted above (disclamer: I do not know where it came from) for per capita (for one person) figure.

Mid

If anything the issue of population simply reinforces the point that Indians enmass are NOT dirt poor .

They rank 9th in GDP globally and the figures come from here :

Indicators | Data

as was referenced in the original cite [3]

harrybarracuda

Pattaya's already full of them, and try find a Thai selling watches on Sukhumvit.

robuzo

The Indians are no slouches when it comes to organized crime.

nostromo

India per capita GDP PPP is about third of Thai.

But further than that, you encounter poor and unbelievable living conditions in India much more than in Thailand. Thailand is extremely rich country compared to India, that is why Indians want to come here.

nostromo

Dont think they match Yakuza or SRV...

Mid

FFS , your initial assertion was Indians are dirt poor ........................

robuzo

Ever heard of Dawood Ibrahim and Chhota Rajan? The Indian mob is enormous and multi-national.