Dusit braces for decline in revenue

       Dusit International, a leading Thai hospitality chain, will review its 2009 revenue growth target after seeing a worse-thanexpected performance in the first half.
       The company earlier forecast zero growth but now believes revenue could fall in 2009.
       Dusit's performance would not differ from that of other hotels, said Octavio Gamarra, the group's senior vicepresident.
       Thailand's tourism industry has been sluggish since the airport closures by political protesters late last year.
       "It is a very difficult time for hoteliers.I have never faced a situation like this in a decade. Actually, I think the situation started showing some improvement in March but the collapse of the Asean Summit (in April) did worsen tourism,"he said.
       In the first half, Dusit reported a net loss of 67 million baht on revenue of 1.43 billion. This compared with a net profit of 242 million baht on revenue of 2.03 billion in the same period of the year before.
       In the second quarter, it lost 92 million baht on revenue of 624 million. This compares with a net profit of 131 million baht on revenue of 1.03 billion in the same period of 2008.
       Losses were aggravated by the global financial crisis from late last year and the emergence of H1N1 flu.
       But Dusit has some bookings for September and October, said Mr Gamarra.He therefore expects the situation to pick up in the rest of the year, unless the political situation deteriorates.
       From May to June, average hotel occupancy was less than 40%, compared with 70-72% in a normal year, he said.The company has cut its average room rate by about 12% to resolve the problem.
       Dusit has also focused heavily on new markets like the Middle East, India and China.
       The Middle East is becoming an important market for Dusit, said Mr Gamarra. The number of travellers from the region will continue to increase and the company is aiming an expansion plan at the market, he said.
       "Tourists from the Middle East will help fill up our properties during the low season. Besides, India and Indonesia are also big markets, not only for Dusit but also for other Thai hoteliers, because their economies have continued to grow amid the global economic crisis," he said.
       Dusit will open three properties in the Middle East and one in New Delhi by 2010. It also plans to export its brands to Europe and North America.
       Shares of Dusit Thani closed yesterday on the Stock Exchange of Thailand at 26.50 baht, up 25 satang, in trade worth 34,000 baht.