Why is Thailand Such a Popular Destination?
Thailand is becoming increasingly popular with tourists coming from all around the world, in fact,tourist numbers have increased from all four corners of the globe with the only region recording a fall in visitors being from those coming from Oceania. This say a lot about Thailand and that it is so diverse and welcoming to all nationalities. Not only is that fantastic for overseas visitors but the country gets to reap the rewards as well.
There are several factors that add to Thailand’s appeal. The first is the excellent year-round climate that appeals to those looking for a bit of winter sun. The north and south are effected to a greater extent and there are of course seasons but you can be confident what the weather will be like whatever time of year you visit. Secondly, Thailand is still relatively cheap in comparison to many other countries meaning that it is affordable for more people. The country has so much to offer visitors in terms of things to see and do. Most of the popular tourist destinations such as Pattaya and Phuket have several championship standard golf courses close by as well as a wide selection of water sports and other activities aimed at the sportier. Those who prefer a quieter break can enjoy the beautiful scenery, ancient temples and of course the world-famous beaches and islands. If even this is too much you will be delighted to know that the shopping and cuisine is just as exciting.
The fact that the country is so popular means that many people are looking to invest there. This could be in the form of businesses or more commonly investment properties. Demand for accommodation is high in Thailand, especially for short term lets for holidaymakers. These short term lets can give an excellent ROI but if properties lay unoccupied for any length of time these returns can quickly be eroded. This potential downside of investment properties was quickly ceased upon by developers and even the 5-star hotels and turned into an opportunity. They realised that if they could build quality properties that would appeal to guests, they could make great returns. However, they would need to make significant initial investments which many were reluctant to do, and so the rental guarantee concept was born!
These rental guarantee concepts offer investors a guaranteed return for guaranteed period giving them security and a healthy return. The fact that many of the investments are in 5-star hotels is just an added bonus as the investors benefit from the hotels huge attraction, location, management teams and financial backing making an already secure investment even safer – obviously, something that investors crave. An example of one such completed rental guarantee concept is in the Amari hotel in Pattaya. The deal currently guarantees a return of 5% p.a. for five years with projected returns expected to be upwards of 8% p.a. in the following years. No input is required from the investor once they have purchased the unit and it has the backing of a well-known, 5-star hotel situated in a prime location with the finest management teams available.
Similar schemes are available in projects that are currently under construction in Phuket within the Best Western and Ramada hotels. With these projects yet to be completed, the returns offered are slightly higher with 7% p.a. guaranteed for five years and projected returns in excess of 10% p.a. in the years thereafter. Once again these have the backing of well-known reputable hotel brands in prime locations. It is not hard to see why these investments are proving so attractive.
Healthy returns whilst at the same time having plenty of potential capital growth – not bad for a passive income!