Surging airlift pushes airport arrivals past 4.6 million passengers in 2016, second only to Phuket.

BANGKOK, THAILAND – Thailand’s legacy Chiang Mai tourism market has undergone a millennial transformation that is now tapping into a new base of travelers seeking authentic Thai experiences. Last year over 4.6 million arrivals at the city’s international gateway thrust the destination into a new light, as the passenger volume only trailed Phuket in terms of provincial airports in the country.

According to C9 Hotelworks’ latest market research Chiang Mai Hotel Market Overview much of the growth has been fueled by rising low-cost carriers, with 5,346 flights from Greater China last year.

Over the past 10-years passenger arrivals have shot up by three-fold with 2013 being the turning point fueled by the epic success of the Chinese film’ Lost in Thailand’. Noting the explosive impact of cinematic wanderlust on tourism, C9’s Managing Director Bill Barnett said: “Be it ‘Eat Pray Love’ or ‘Notting Hill’, the impact of film in destination marketing is remarkable. While Thailand’s travel market outside of Bangkok shifted to the beach in the early millennium, a rising tide of Asian travelers and westerners increasingly want into the culture club instead of the atypical surf and turf.”

As Thailand’s government has pivoted its tourism ambition from quantity to quality, Chiang Mai has fit nicely into the equation with a range of impressive new boutique hotels, a rampant art scene and budding culinary offerings the shift is resonating with Thai and foreign travelers alike. One of the most eagerly awaited entries to the creative scene was the debut of the MAIIAM Museum of Creative Art in mid-2016.

“We are certainly seeing increasing demand for personalized itineraries for Chiang Mai – for both the city itself and also a connecting city to explore the far north of Thailand,” said ASIA DMC Thailand Managing Director Andre van der Marck. “Strong domestic airlift is helping access while the increase of creative, boutique accommodation is an ideal match with the experiential millennial travelers we see more and more.”

Looking into the prospects for 2017, while the government instituted a crack in zero-baht tours from Mainland China in the mid part of last year, the impact is normalizing given strong demand from Thai domestic travelers who are being drawn to a different Chiang Mai experience.

Digital media is super charging the pace of change as millennials abandon guidebooks and replace them with smartphones and a new mode of travel driven by authentic local experiences and a lifestyle of sharing thanks to Facebook and Instagram.

Bangkok, Thailand – On Monday January 23, 2017 the annual Thailand Tourism Forum (TTF) brings together more than 500 hotel industry professionals at the InterContinental Hotel Bangkok to discuss the most important issues currently facing the country’s tourism sector.

Despite significant global challenges, tourism in Thailand continues to show impressive resilience with annual arrival numbers set to exceed 30 million. Increased airlift and expanded infrastructure in Bangkok, Phuket, Koh Samui and Chiang Mai all serve as strong enablers for growth, while an ability to adapt to ever-evolving visitor needs and expectations continues to allow Thailand’s tourism markets to thrive, even in the face of a rapidly changing global travel market.

Even with a positive big picture outlook, Thailand faces significant challenges and strong competition from other countries in Southeast Asia and hotels across the kingdom are continually faced with the task of reaching respectable levels of ADR while also maintaining RevPar. Meanwhile, tourism dependent businesses are forced to repeatedly re-invent themselves in order to stay relevant, not only to visitors’ changing travel aspirations, but also to the expectations of visitors from an ever widening range of cultures and source markets.

“New faces from new places demand new business models that will breathe life into the Thailand tourism industry. The ‘Chinafication’ of Thai tourism means that Chinese visitors have be come the oxygen for growth and with a rise in independent, wealthy travellers it’s time for the industry to look beyond the tour groups and refine its approach to all the key Asian source markets,” said Bill Barnett, Managing Director of C9 Hotelworks.

These new demands and market dynamics are assessed and analyzed by expert presenters and debated in lively panel discussions at the Thailand Tourism Forum 2017 during a full afternoon programme followed by a well attended networking event, supported by the InterContinental Hotel Bangkok.

Underlining the importance of new generation thinking for hotels and hospitality businesses in Thailand, TTF this year welcomed Khun Vorasit ‘Wan’ Issara, Managing Director of Sri panwa, a member company of Charn Issara Group. Sri panwa is one of Thailand’s leading luxury hotels and Wan is very active in the Group’s hospitality undertakings which also include Baba Beach Club Hotel in Phang Nga and Baba Beach Club Hotel in Cha Am – Hua Hin.

Also among the panelist was Gavin Vongkusolkit, Founder & MD, founder and managing director of Heritage Estates Co., Ltd. which owns and operates Ad Lib Hotel, Glowfish Serviced Offices, various office properties in Bangkok, and six outlets of KuppaDeli cafes. Gavin has served as a director of the Erawan Group Plc. since 2011, and is also a director of YEC – the Young Entrepreneurs of the Thai Chamber of Commerce (Bangkok Chapter).

“In a world of instant updates and ever-changing travel technologies, trends and attitudes, it’s more important than ever to be an innovative player in the industry,” says Bill Barnett, Managing Director, C9 Hotelworks, one of the event’s founders and organizers. “TTF 2017 focuses on key statistics and emerging trends and we are pleased to showcase some of the powerful new Thai regional destination brands that have emerged in recent years, and consider how new ideas and aspirations are reshaping hospitality.”

Over the last three years, TTF has established itself as an important platform for hospitality business leaders and tourism experts to candidly discuss the health and direction of the travel industry. The success of this year’s event further cemented it’s value in helping to chart the future success of tourism in Thailand.

“Every year TTF builds on the issues and conversations it started the previous year and 2017 is no exception. The forum not only offers a unique opportunity for considered conversation but also the chance for Thailand’s tourism professionals to connect with their industry peers,” said Charles Blocker, CEO, IC Partners and the event’s co-organizer.

To see a full programme and download the presentations from the event, please visit www.thailandtourismforum.com or www.amchamthailand.com.

For further information and high-resolution photography, please contact:

David Johnson
Delivering Asia Communications
E-mail: [email protected]
Tel: +66 (0) 2246 1159

Note to Writers and Editors

Thailand Tourism Forum is an annual event held every January and organized by the American Chamber of Commerce (AMCHAM) Thailand and leading hospitality consultancy C9 Hotelworks. Now in its sixth year, the event attracts leading industry speakers and a growing number of delegates from around the region. Thailand Tourism Forum offers delegates a unique opportunity to hear hospitality leaders and experts candidly discuss the industry and a forum to take a closer look at numbers, evaluate risk and learn more about important new trends in tourism across all Thai travel destinations.

BANGKOK, THAILAND: Thailand Tourism Forum (TTF), an influential annual gathering of top hotel industry professionals in the Thai capital, will be held on Monday January 23, 2017 at the InterContinental Hotel Bangkok.

Now in its sixth year, TTF is organised by Thailand’s American Chamber of Commerce (AMCHAM) and C9 Hotelworks with support from InterContinental Hotel Group and continues to position itself as a key platform for hospitality business leaders and tourism experts to candidly discuss the state of the industry. The upcoming edition of TTF will focus on how Thailand’s tourism sector can adapt and maintain a strong, long-term growth trajectory while embracing disruptive trends that range from the sharing economy to a significant growth in millennial domestic travellers.

Despite global economic woes, extreme currency fluctuations and considerable domestic challenges, Thailand has continued to see a steady increase tourist arrivals through 2016. The Tourism Authority of Thailand recently announced that the country is on track to exceed arrival targets for this year, which will generate more than THB 2.58 trillion (USD $73.7 billion) in tourism revenue for the country – up 14% from 2015.

Even amid such a positive big picture outlook, persistent challenges remain for Thailand’s hospitality sector. For hotels, there’s the constant task of maintaining ADR and achieving respectable RevPar in an increasingly competitive regional marketplace; for destination-focused businesses there’s the need to remain agile and fresh in a constantly evolving travel landscape. These demands and market dynamics will be analyzed by expert presenters and debated via lively panel discussions at the Thailand Tourism Forum 2017 during a full afternoon programme that flows into a well attended networking event.

“In a world of instant updates and ever-changing travel technologies, trends and attitudes, it’s more important than ever to be an innovative player in the industry,” says Bill Barnett, Managing Director, C9 Hotelworks, one of the event’s founders and organizers. “TTF 2017 will focus on key statistics and emerging trends. It will also showcase some of the powerful new Thai regional destination brands that have emerged in recent years, and consider how new ideas and aspirations are reshaping hospitality.”

Underlining the importance of new generation thinking for hotels and hospitality businesses in Thailand, TTF will this year welcome Vorasit ‘Wan’ Issara, Managing Director of Sri panwa, a member company of Charn Issara Group. Sri panwa is one of Thailand’s leading luxury hotels and Wan is very active in the Group’s hospitality undertakings which also include Baba Beach Club Hotel in Phang Nga and Baba Beach Club Hotel in Cha Am – Hua Hin.

Also among the panelist will be Gavin Vongkusolkit, Founder & MD, founder and managing director of Heritage Estates Co., Ltd. which owns and operates Ad Lib Hotel, Glowfish Serviced Offices, various office properties in Bangkok, and six outlets of KuppaDeli cafes. Gavin has served as a director of the Erawan Group Plc. since 2011, and is also a director of YEC – the Young Entrepreneurs of the Thai Chamber of Commerce (Bangkok Chapter).

After thought provoking opening remarks from Mr. Barnett, which traditionally set the scene for the dynamic discussions that follow, presenters at TTF 2017 will include Jesper Palmqvist, Area Director – Asia Pacific, STR, Nihat Ercan, Executive Vice President, Investment Sales Asia, JLL and Wimintra Jangnin – Editor in Chief – Hotel Intel. The panels will be moderated by Charles Blocker, CEO, IC Partners, Robert V. R. Hecker, Managing Director, Horwath HTL, David Keen, CEO, QUO and Eric Levy, Managing Director, TSI.

Senior executives from a number of leading international hotel brands will also join the panel discussions, including InterContinental Hotels Group, ONYX Hospitality Group, Dusit International, Rosewood Hotel Group and Accor Hotels. They will be joined by top level representatives from major Thai Hotels including Plaza Athenee Bangkok and The Siam Bangkok, as well as the offer mentioned Sri panwa and The Slate on Phuket. Expert opinion will also be provided by Khun Tanes Petsuwan, Deputy Governor – International Marketing Strategy, Tourism Authority of Thailand, Mark Simmons, Marketing Advisor, Phuket Hotels Association, Chittimas Ketvoravit, Managing Director, D.K. Lam Properties and Khun Vorada Jia Thangsurbkul, FEVP Investment Banking Division, Siam Commercial Bank Plc.

“The 2016 forum was our best yet with more than 500 delegates. We expect TTG 2017 to be even bigger as it not only offers a unique opportunity for considered conversation but also the chance for professionals to connect with their industry peers,” said Charles Blocker.

Attendance at TTF 2017 is free of charge with advanced registration required. Please visit www.amchamthailand.com for online registrations, or contact [email protected] or call (+66) 02-254-1041 (ext. 212) for more information.

To see a full programme of the upcoming forum, please visit www.thailandtourismforum.com.

For further information and high-resolution photography, please contact:

David Johnson
Delivering Asia Communications
E-mail: [email protected]
Tel: +66 (0) 2246 1159
Mobile: +66 (0) 89 170 9866
www.deliveringcommunications.com

Note to Writers and Editors

Thailand Tourism Forum is an annual event held every January and organized by the American Chamber of Commerce (AMCHAM) Thailand and leading hospitality consultancy C9 Hotelworks. Now in its sixth year, the event attracts leading industry speakers and a growing number of delegates from around the region. Thailand Tourism Forum offers delegates a unique opportunity to hear hospitality leaders and experts candidly discuss the industry and a forum to take a closer look at numbers, evaluate risk and learn more about important new trends in tourism across all Thai travel destinations.

BANGKOK, THAILAND – Southeast Asia’s booming tourism trade has experienced a new twist with a rising segment of second generation upmarket hostels now attracting a wider demographic. With a market size of over 1,200 properties and nearly 52,000 beds, the new and improved product is turning the heads of traditional hotels.

According to a report on Hotel Market Trends in Southeast Asia by leading hospitality consulting group C9 Hotelworks there was an explosive 42% surge in new beds coming online in the ‘flashpacker’ category between 2015 and the third quarter of this year. Thailand, Malaysia and Vietnam are now the top three players in the region, with Indonesia narrowing the margin with year-on-year growth of 73%.

Speaking about this evolving new accommodation space, C9’s Managing Director Bill Barnett said: “Hostels are unlike hotels as average rates are calculated on a per bed basis, compared to hotels which use a per room rate. Our research across Southeast Asia shows that if comparing the two accommodation models side by side, the average room rates in newer hostel properties are matching or exceeding those in the more established budget hotel tier.”

What has surprised many analysts is the growth in upscale hostel properties that now also offer a number of creatively designed private rooms.

“Ultimately the mix of accommodation and bed types in what are being term ‘poshtels’ attracts not only solo travelers and couples, but also taps the fast tracking friends and family group. Hostels are also set to take advantage of Asia’s low-cost airline carrier trajectory in a significant way,” added Mr. Barnett.

Viewing C9’s research, it soon becomes evident that a different business model works in city and non-city locations. Although the market average is 4.1 beds per room, this number shoots up in urban locations like Singapore where the average is just over 6 beds per room. Land prices in urban locations remain a significant factor, although unlike the more inflexible institutional approach to branded budget hotels; hostels can easily adapt to retro-fits and re-purposed real estate, hence an increasing number of groups are now developing a critical mass of properties.

Summing up the sector, Bill Barnett said: “In Europe chains such as Generator and Meininger have attracted institutional investment to spur expansion, and we are already seeing private equity players in Southeast Asia start to chase the trail of what is arguable the region’s must exciting travel space.”

BANGKOK, THAILAND – One million arrivals are expected for Khao Lak this year, a huge transformation for the destination, following the dark days following the Asian Tsunami in 2004 according to a new report by leading hotel consultancy, C9 Hotelworks.

In the year following the event hotel guest arrivals in Phang Nga Province fell sharply under 300,000 for the entire year, but in a remarkable sustained upswing the number pushed upwards to 962,020 at the end of 2015 and is expected to break the one million mark this year. View the Khao Lak Hotel Update 2016 report.

Key drivers, according to the report, are rising Chinese and Australian visitors, adding to the European guests that still dominate the market with 80% of arrivals, resulting in a new surge of hotel development.

Khao Lak’s hotel market has 104 registered accommodation units with 7,822 keys, a number which pales compared to neighbour Phuket, whose total supply is close to 50,000 rooms. But, over the past five years the destination has seen a compounded annual growth rate of 16%, a rising performance not un-noticed by both Thai and foreign hotel developers with 1,213 new rooms coming into the supply pipeline.

Commenting of the market evolution C9 Hotelworks’ Managing Director Bill Barnett said: “The upward cycle in tourism is highlighted by the planned return of Bill Heinecke’s Minor Hotel Group and more international brands coming on stage such as IHG’s Holiday Inn brand. Geographically within Khao Lak we are seeing the push north for the newest and larger resorts with Bangsak in particular seeing a number of large-scale properties.”

Snowbirds or winter visitors from European countries especially German-speaking nationalities have traditionally been the legacy market. These were in fact the main drivers of the destination in the period after the Tsunami. However, by 2006 foreign visitors eclipsed domestic demand for the first time and the trend has grown ever since.

“Over the past few years Khao Lak has attached itself to Phuket’s fast rising airlift and China and Australia in particular, with strong arrivals in the traditionally lean summer months, driving the growth and market maturity as it becomes a year-round market as opposed to the disruptive seasonality it used to be known for,” said Mr Barnett. Data from C9’s report also points to other key emerging markets such as Japan Korea, Malaysia and Singapore as key catalysts of change.

Summing up Phang Nga’s push towards the golden one million milestone Bill Barnett added: “Khao Lak has been able to attract an increasing number of visitors from nearby Phuket who have destination fatigue and are disconnected by the wide-spread urbanized of the island’s resort atmosphere. Though the destination is firmly connected to the bigger Greater Phuket infrastructure including the soon to open expanded airport, in the long-term Phang Nga will have to develop its own gateway airport in order to control its own tourism destiny.

PHUKET, THAILAND : One of Asia’s prime resort destinations – Phuket – has experienced a sustained upward growth cycle that has seen passenger arrivals nearly double over the past five years. As Teflon Thailand has experienced it’s ups and downs over in the political arena, airlift has continued to flow not only into Bangkok’s two gateway airports, but into secondary airports such as Krabi, Chiang Mai and Samui which followed a similar trend to Phuket.

New data released by Thailand-based consulting group C9 Hotelworks shows that a year-on-year spur in international passengers hit 8%, while the domestic sector surged upwards by 15% which in practical terms includes a significant number of overseas travelers transiting Suvarnabhumi and Don Mueang.

A key catalyst to the changes continues to be mainland China, which compared to the same period in 2014 vs. 2015 rose a staggering 34%.
While China based-tourists were thought to be on the wane given the country’s economic woes and depreciating currency the reality on the ground is that many travelers who might have chosen long haul trips to Europe, North America or Australia have instead flocked to Thailand.

Commenting on the mass market, C9’s Managing Director Bill Barnett said “location, location, location – the China syndrome has so much to do with door-to-door travel time fuelled by a rising number of low-cost airlines that use single-body aircraft. Another key factor remains a unique cultural connection and high esteem for Brand Thailand on the Mainland”.

One key highlight revealed in the C9Hotelworks Phuket Hotel Market Update 2015 is the issue facing the island’s hotel operators and owners regarding rate management. While increases in the market are in occupancy, they are not in rates, which remains somewhat static compared to last year, with only a 1% market-wide rise.

Says Bill Barnett: “A rise in OTA’s, wholesalers and shorter booking periods of less than 30 days is seeing hotels push the over-react button on rates and in many cases short selling their product. It’s a shifting market that has confused the traditional hotel yield mechanism and much of the demise in rates aside from a major change in geographic segments is panic selling.”

Looking forward, Phuket’s airlift is set to get a major boost this year with the opening of the new international airport terminal in June. On the heels of this has been news that an affiliate of Thailand’s CP Group has been awarded a BoT concession for a THB200 million private jet terminal. This is expected to further boost the island’s luxury sector which was the best performing hotel tier last year, demonstrated by a 17% increase in average daily rate (ADR) and 24% jump in RevPAR.