TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

Koh Samui Airlift Hits Hotel Performance

Category: Hotels, Posted:10 Feb 2011 | 06:00 am

Koh Samui's four-year hotel building boom is threatening to undermine the long-term success of the destination as supply outstrips an arrivals demand hamstrung by severely limited airlift, according to Samui Hotel Market Update 2010, released today by C9 Hotelworks.
The report <link>http://www.c9hotelworks.com/downloads/Samui-2010-Hotel-Market-Update-Feb-2011.pdf*(download the full report here)</link> reveals that oversupply heavily impacted last year's operating performance and if there was no airport expansion or relocation plans that would improve access to the island, the long-term potential of Koh Samui would be effectively capped.
Koh Samui, Thailand's second-largest island, 700 kilometres south of Bangkok, is located in an international flight corridor requiring low landing levels. Coupled with environmental restrictions allowing only 36 flights a day at the existing airport and a runway length unable to handle larger aircraft, it has created a situation that is strangling the popular southern Thailand destination.
The simple problem is that you can't stay there if you can't get there, this is the key restricting growth in Koh Samui. Private sector development in the hospitality sector has surged well ahead of transportation infrastructure improvements which has caused the market to go into a tailspin.
According to report data, gains during 2010 in international arrivals were neutralised by diminishing European tourists and a drop in the volume of historically strong repeat guests. Marked declines were registered in occupancy by 7%, average room rates by 15% and RevPAR by 26% compared to 2009.

However, forward trading prospects were greatly bolstered by the high quality of much of the new supply with a number of stylish branded products entering the market in the luxury and upscale tiers.
Short-term there is an inherent risk of being lost in transition over the next few years. This uncertainty is highlighted by the ability of the market to absorb 801 new rooms scheduled to enter the supply side by 2012, presenting a growth of 5% over the existing 14,401 rooms at the end of 2010.
Speaking to resort owners and hotel managers during the market research process comments to C9 centered on the airlift conundrum topic. Comparing the emerging destination to the more developed markets of Phuket and Bali, what was clearly missing in Koh Samui was regional low cost carrier and charter flights.
As new markets are emerging low cost carriers and charter flights are high demand generators. An example of competing regional destinations is the new international airport in the emerging tourist island of Lombok in Indonesia near to Bali, which looks set to leapfrog growth with its ability to land Boeing 747 and Airbus wide body aircraft.
Koh Samui's journey from an idyllic Robinson Crusoe-like paradise to a mainstream market has hit the halfway marker. Expectations for 2011 look to focus on the coming of age debate and whether increasing international brands can induce sustainable demand.

Other News

Read more

PHIST 2021 – Sustainable Asia RE-defined Coming 28 October

Category: Hotels, Posted:11 Oct 2021 | 09:11 am The fourth annual Asian-based sustainability-focused learning event PHIST 2021 will take place in a dynamic virtual setting on 28th October. Organized in Phuket, Thailand with speakers from across the region. PHIST (Phuket Hotels for Islands Sustaining Tourism) has established itself as a leading forum in Asia for sustainable tourism, environmental education for hotels as well […]
Read more

Lonely Planet. Ultimate Vacation Homes. More Phuket Meds

Category: Tourism, Posted:07 Oct 2021 | 21:02 pm It’s Friday and we have a trio of video insights for you. Listen to an intriguing talk with Joe Cummings who is behind the first Lonely Planet Thailand guidebooks. Hear seven short real estate talks on the latest trends. And then, how is Thanyapura looking to expand their medical footprint across Phuket. Right here. Right […]
Read more

Two Neil’s For Six Senses

Category: Hotels, Posted:03 Oct 2021 | 17:35 pm Veteran Asia-Pacific hotelier Neil Palmer has been named Chief Operating Officer of Six Senses Hotels Resorts Spas. Palmer is best known as a stalwart executive at Starwood Hotels & Resorts. Meanwhile, Neil Jacobs continues in his role as Chief Executive Officer. Former Six Senses COO Guy Heywood has moved to boutique chain Habitas Hotels.