How Thailand’s Second Biggest Island Manages Seasonal Demand
Koh Chang is an island hideaway in the Gulf of Thailand, within drivable proximity to Bangkok. The destination is highly leveraged with domestic tourists, mainly from Bangkok and nearby provinces. Thai visitors usually travel during the low season from April to September.
During the peak period from December to February, most hotels run over 90% occupancy, with high demand coming from long-haul European visitors, with up to a two-week average length of stay. In a nutshell, opposite travel patterns of domestic and international visitors result in balanced year-round hotel demand.
In 2019, Koh Chang welcomed 1.3 million visitors in total. The Thai Baht appreciation last year affected hotel guests’ behavior and purchasing power, hence many hotels had to adjust room rates, resulting in a decline in RevPAR of 3%.The COVID – 19 crisis in Q1 2020 has negatively affected hotel occupancy in terms of early check-outs, cancellations, and a flat trend in new bookings. As of February 2020, it is estimated that the number of visitors to Koh Chang dropped by 18% year-to-date.
For hotel supply C9 Hotelworks research has shown registered properties will grow to 281 establishments with new 8,159 keys by the end of 2022. By 2022, there will be two hotel developments entering the market, namely Splash Hotel (40 keys) and Marriott Koh Chang Hotel (240 keys).
Looking forward post COVID-19, domestic demand is expected to see early recovery. Due to increasing hotel supply in the upscale and upper-upscale market segments in recent years, competition amongst four-star hotels is anticipated to mute average room rate growth in the short term.
To read and download C9 Hotelworks Koh Chang Hotel Market Update 2020 click –