HORECA ASIA2017 highlights phenomenal growth of SMEs start-ups in hotels, restaurants, catering and cafés creating a total solution for ASEAN market.

HORECA ASIA2017 highlights phenomenal growth of SMEs start-ups in hotels, restaurants, catering and cafés creating a total solution for ASEAN market.

Thailand Convention & Exhibition Bureau (Public Organization) or TCEB and Thai Hotel and Hospitality Management Association together with Asia Horeca Company Limited will organize HORECA ASIA2017, the international trade show for hotel, restaurants, cafes, and catering services. The trade event is to be held between 12th – 14th July 2017 at the Queen Sirikit National Convention Center, Bangkok with the purpose to meet the demand of raw materials, goods, and services and to open trading opportunities in the global market for Thai entrepreneurs.

Bangkok – Tuesday, 27 September, 2016, Mrs. Jaruwan Suwannasat, Director of Exhibitions and Events Department of TCEB, Mr. Kamol Ratanavirakul, President of Thai Hotel and Hospitality Management Association (THMA) and Mrs. Ladda Mongkolchaivivat, Managing Director of ASIA HORECA Co., Ltd. held a press conference for HOERACA ASIA 2017, the exhibition and trade show of innovative and creative products and services in the HORECA industry; hotel, restaurants, cafes and catering from over 100 premium SMEs entrepreneurs.

Mrs. Ladda Mongkolchaivivat, Managing Director of ASIA HORECA Co., Ltd. revealed that “The annual total market value of the HORECA business group, which includes Hotel, Restaurant, Café and Catering, is approximately 1 trillion baht. The hotel business group is worth up to 527,000 million baht followed by the restaurant business group with 385,000 baht, and the coffee, bakery, ice cream, and catering group with 62,000 million baht.

Since 2014, the HORECA segment has shown a 10-20% increase each year thanks to the climbing growth rate in the number of tourists. The expansion plans of restaurants, bakeries, and coffee shops to accommodate the demand of the flourishing market thus follows. Another factor is the changing behavior of Thai consumers from dining at home to eating out at various kinds of place from restaurants, fast-food chains, street food stalls, food carts, to convenience stores. The results showed that Thais who eat out 3-6 times a week or 7 times a week account for up to 70% while the remaining 30% also eat out but in a lower frequency.”

Such characteristics make HORECA business operators aware of the need to supply raw materials, equipment, and tools to meet demands, increase capabilities, and reduce cost, which in turn helps enhance the abilities of suppliers in production and distribution of material resources for the business. A long term benefit of this phenomenon would be more trade opportunities in potential domestic and foreign markets and the improvement in business operating practices to make them internationally accepted.

“Therefore, HORECA ASIA2017, the international trade show for hotel, restaurants, cafes and catering services, is made to happen in order to meet the demand of both the buyers which are entrepreneurs in the HORECA business and the sellers who manufacture and supply an array of raw materials, as well as providers of design, marketing service, and management. The trade event becomes a comprehensive service for everyone in business. The idea of the event is to offer the “total solution” for hotels, restaurants, café and catering services, and to be a platform to push the Thai SMEs startup entrepreneurs to the international arena. Participants will be able to update business trend, get ready to cope with market changes, develop quality of products and services, which leads to the promotion of trade negotiation in the region. The key features are diversity, guaranteed quality, creativity, and innovation that come in a wholesale price especially for the SMEs startups.” the Managing Director of ASIA HORECA Co., Ltd. concluded.

Mrs. Jaruwan Suwannasat, Director of Exhibition and Event Department of TCEB said that, ““TCEB is a government agency with the mission to support, promote, and enhance the capabilities Thailand’s MICE industry, and to create marketing opportunities for MICE entrepreneurs to be able to compete in the global market. TCEB is very glad and willing to support HORECA ASIA 2017, the event that is regarded as a key economic driver of the country. The profile of this show is also a key mechanism in the development of tourism and MICE industry in Thailand. It is a platform to showcase the potential of Thailand to the ASEAN market.

As one of the main sponsors, TCEB focuses on the international marketing to increase the number of quality target buyers for Thai MICE entrepreneurs. TCEB does carry out promotional activities in target markets such as China, India, and other emerging markets with potentials. TCEB also create the “Connect Businesses” campaign which was attended by groups of businessmen and entrepreneurs from ASEAN and BIMSTEC countries, who came for trade negotiation and business pairing. The aim of this campaign is to support and stimulate the growth of the campaign and the increase in the number of foreign exhibitors.

The trade show this year is expected to be attended by 6,500 local and foreign participants who will engage in trade negotiation and investment, which in turn, will help promote Thailand as a regional hub of the MICE business and eventually contribute to the truly global success.”

Mr. Kamol Ratanavirakul, President of Thai Hotel and Hospitality Management Association (THMA) added that, ““Currently, there are no official statistics on the accurate number of hotels and rooms because even though legally registered hotels and lodging buildings can be recorded, it is impossible to keep track unregistered hotels that advertise vacant rooms for daily rentals. The latter is quite large in numbers. The number of hotels legally registered with the government is about 7,500, but it is estimated that there are no fewer than 5,000 lodging places across the country that illegally rent out rooms, not to mention condominiums whose owners advertise the rooms for daily rental. Condominiums used for such business purpose locate at major tourist attractions such as Hua Hin, Pattaya, Phuket, and Bangkok. When combining the number of legally registered hotels and those unregistered ones, we will have around 12,000 hotels and more than 200,000 guest rooms. From this number, medium-sized hotels (having fewer than 200 rooms) and small-sized hotels (having fewer than 80 rooms) account for 93% with the growth rate consistently at 11.75%, representing approximately 527,000 million baht per year. This year the growth is 10.2%, consisting mostly of resorts followed by hotels. The trend is still on the rise due to the increase in the number of domestic and foreign tourists.

In the year 2015, the number of tourist arrivals in Thailand was about 30 million, generating approximately $ 1.3 trillion baht. The hotel industry, especially small and medium enterprises, has continued to grow. 50-100 new hotels emerge every year scattering around main attractions of the country such as Chiang Mai, Phuket, Pattaya, Hua Hin, Samui, and so on. The majority of investors are Thai entrepreneurs because the size of the investment is not very big despite the expansion of Chinese and Asian tourists which accounts for more than 60% of all visitors who travel to Thailand. The reason for relatively small investment is that this group of tourists is more interested in and wants to stay in small and medium-sized hotels than in 5-star ones as small hotels signify affordable prices, warm welcome, and hospitability that big hotels might not be able to match. The tourists also have a perception that most owners and managers of small to medium-sized hotels cater more friendly service to customers.”

To prepare for the competition and the development of the tourism industry, business operators, especially those who own small and medium enterprises, need to focus on three areas: 1) the management of resources, including cost and expense management to ensure constant supply of quality goods and ingredients to meet customer need 2) knowledge development, including personnel training in developing products and brands, creating selling point, applying creativity to make a difference particularly for food and beverage businesses, and 3) marketing network creation through online marketing or promotional activities in potential markets.”

“The HORECA ASIA this year will be another tool useful to the operators. In addition to meeting buyers and sellers, they will also gain new experiences, broaden their horizon, and probably inspire budding entrepreneurs who are still hesitant to create new businesses, hotels, restaurants, coffee shops. For non-business visitors, the event is not any less interesting because they can still take some ideas that might be valuable for their business in the,” stated the President of THMA.

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