The Cost and Return on Guesthouse Business in Chiang Mai, Thailand

Authors

  • Olufemi Akintunde University of Lagos, Nigeria University of Phoenix, USA Ramkamheang University, Bangkok

Keywords:

Cost, Return, Guesthouse, Chiang Mai Initiative, Thailand Privilege Card

Abstract

In Thailand the main income is tourism and Thailand government motivates tourists around the world to travel to Thailand by promoting and pushing “Thailand Privilege Card†for priority services. The accommodation businesses have benefited from tourism industry due to many visitors looking for where to stay. In other word, the earning of guesthouse business depends on the number of tourists. In addition, Chiang Mai is the second biggest city in Thailand and they are many tourists from difference country and part of the country visiting Chiang Mai.

The investor who intends to operate guesthouse business in Chiang Mai has to consider the cost and return on guesthouse business. The small guesthouse consist of (1 – 20 rooms) has an investment cost of about 4,075,288.69 baht, with income per year average of 1,270,381.13 baht and net profit per year about 476,705.62 baht.

Moreover, the large guesthouse consist of (21 – 40 rooms) and has an investment cost of about 12,920,388.90 baht, with income per year average 3,520,550.00 baht and net profit per year about 1,799.968.89 baht. To choose what size of guesthouse an entrepreneur can be able to invest in depends on his/her capital and the expected return from business, as each guesthouse rate per room depends on many factor namely decoration, location and service provider.

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Published

2013-08-30

How to Cite

Akintunde, O. (2013). The Cost and Return on Guesthouse Business in Chiang Mai, Thailand. Asian Journal of Business and Management, 1(3). Retrieved from https://www.ajouronline.com/index.php/AJBM/article/view/269

Issue

Vol. 1 No. 3 (2013): August 2013

Section

Articles

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