As Southern Thailand’s Andaman coast experiences the onset of the rainy monsoon season, the vibrant surf culture in Khao Lak comes alive. At the heart of this burgeoning aqua sports scene is the famed Memories Beach in Pakarang, drawing an excited blend of both Thai and international travelers.
The surf scene in Khao Lak has flourished in recent years, with a significant contribution from trailblazers like Bert Berger, the visionary behind Sunova Surfboards. Back in 2016, the company relocated its factory to this region, kickstarting a trend. Presently operating under The Board Factory, this successful start-up has expanded its horizons beyond surfboards to encompass SUPs, windsurfs, and kiteboards. Visitors stepping in are greeted by an exhilarating skatepark, setting the stage for an engaging factory tour.
No visit to Memories Beach is complete without basking in the shade and savoring refreshments or a meal at the Karkinos Beach Club. The club’s sustainable design, incorporating natural materials and a sand bar, is an Instagram-worthy attraction. The genius behind this awe-inspiring Mad Max/Robinson Crusoe structure is none other than Phuket architect Joe Sanya from Architects11, making it the go-to destination for the quintessential West Coast sunset experience.
GARANG Artisan Ice Cream, another local start-up sensation, has triumphed in this landscape. Here, gelato is meticulously handcrafted, incorporating local flavors that pay homage to the essence of Khao Lak. Situated in Bangsak, the vibrant, colorful shop boasts boho-chic interiors and surf-inspired artwork, creating a distinct neighborhood ambiance.
In the midst of the COVID-19 pandemic, Khao Lak experienced an influx of Thai visitors, including the trendy denizens of Bangkok who embraced the art of surfing at Memories Beach. Presently, the area is swiftly transitioning into an urban retreat and a favored destination for small-scale start-up tourism ventures. This revival is backed by robust economic foundations, where off-beach land just a short 2-3 minute drive away from the shore costs around THB4-5 million per rai. In contrast, the property prices in Phuket have soared to THB10-15 million per rai or even more.
What’s clearly evident to these emerging businesses is the shared advantages of airport accessibility, captivating West-facing sunsets, and pristine stretches of white sand beaches that rival those of the neighboring tourism behemoth, Phuket. The Khao Lak and Phang Nga Hotel Market Update Report by C9 Hotelworks reveals that despite approximately 10,000 registered hotel rooms, supply and demand remain favorable. The entry of international hotel chains has also paved the way for specialized opportunities for smaller properties.
Two segments poised for substantial growth are boutique hotels catering to surf and outdoor enthusiasts, as well as long-stay villa estates offering a resort-like experience. Compared to other Thai beach-focused destinations, Khao Lak presents lower barriers to entry in the market.
Journeying to Khao Lak has been made incredibly convenient with the introduction of a four-lane highway, significantly shortening the travel time from Phuket International Airport to just over an hour. A notable stop on this journey is 076 at Thai Muang. This enchanting garden oasis pays tribute to Phang Nga’s agricultural heritage, seamlessly combining a café, relaxing spaces, and locally inspired shopping. The brainchild of Sii Eawsakul, a prosperous internet entrepreneur and luxury travel aficionado hailing from the region, this labor of love serves as a homage to her roots.
A new direct flight service between Saudi Arabia and Phuket will commence in October 2023.
According to news, the carrier will be Saudi Airlines.
Currently, a number of Middle East airlines fly the route including Qatar, Emirates, Etihad and Oman.
Tropical rainy weather is a novelty for ME travelers, given the hot, arid temperatures in the other sandbox
Phuket hotels are buzzing about Saudi being an attractive growth market for tourism.
Vietjet has kicked off direct flights between Hanoi and Phuket.
The airline also operates daily service between the Thai resort island and Ho Chi Minh City.
While short-haul regional Phuket is gaining pace, with China gaining traction, long-haul traffic to Thailand remains slower compared to 2019, according to OAG.
Thai Airways International’s absence from the Bangkok Phuket route continues to be sidelined in favor of the single-body flights from Thai Smile.
Over the past week, we have been compiling our latest hospitality, tourism, and hotel research on Thailand’s second-largest island, Koh Samui. The island remains a bit of a ‘little-big’ anomaly in Southeast Asia’s massive resort island arsenal. Despite hosting famed global hotel brands such as Four Seasons, Ritz-Carlton, W, InterContinental, and Banyan Tree, its smallish private airport capacity has somehow created a natural barrier to mass tourism in the development-crazed last 25 years.
Looking at the tourism recovery trajectory in our newly released Samui Hotel Market Update 2023, the best word I could use for growth was the impish term ‘moderate.’ No, the island has not broken into a full sweat, but looking at the mounting hotel room night demand in Q4 of last year and into the first quarter of 2023, there are positive signs of momentum.
One of the most important pieces of recovery news is the re-starting of direct flights between Hong Kong and Koh Samui by Bangkok Airways starting the 1st of July. Three weekly flights are set, using an Airbus A319 aircraft. Mainland China flights are also on the books for May which is another strong positive. And for hotels, room night demand has been rising at a great pace this year.
But, this is the conundrum, the destination has limited low-cost airline access, with limited numbers coming from the mainland’s Surat Thani airport and then taking a ferry. While other Thai resort destinations such as Phuket and Pattaya hotels have been on a sharp incline upward, Koh Samui’s return to normal continues to be slower and at a more protracted pace
But my point here is, maybe that’s okay. As fast-growing resort islands across Asia grapple with high population growth, traffic woes, and broken infrastructure, perhaps Koh Samui’s airport-imposed limitation is not entirely a bad thing. Smaller can often be better and chasing the endless tail of growth is not the right recipe for every destination.
One of the niche tourism segments that the island has maintained over the years is wellness. The Kamalaya Wellness Sanctuary and Holistic Spa remain one of Asia’s best-in-class offerings. Rumored to be expanding their current operation with additional land, we can’t wait to see what’s in store next for this icon.
Another health and wellness product, Vikasa attracts a global audience with its yoga training and in-house programs. They have been successful enough to tap into investment from the Alta Capital private equity group and are in the process of expanding to other regional markets.
The bottom line for health, wellness, and fitness travel is how sustainable the marketplace is given a high return guest profile, exceptional in-house spending at a time when hotels are losing traffic to outside restaurants, and most importantly a longer average length of stay. Why the latter is important for smaller destinations where typical regional tourists may spend 2-3 nights on a short break at the beach, while program-driven travelers may stay 5-7 nights, hence requiring less flight frequency.
Moving off of Koh Samui, Koh Pha-ngan which is famed for its epic Full Moon Party, has continued to attract more spiritual-oriented travelers, looking for meditation, spiritual connections, healthy eating, and a like-minded social scene. Again, this is a very specific demographic, but not every destination has to cover tourism in an A-Z travelers cookbook.
As for the idea of how to battle a surge in resort island urbanization that has plagued mass-market destinations such as Bali, Phuket, and Boracay, there is a lot to be said for sharing the business with other nearby locations. Take the Surat Thani mainland and Nakhon Si Thammarat with stunning white sand tropical beaches in Sichon and Khanom and other coastal areas. Plus, there are two large-scale airports in both of these provinces that have growth capacity and offer access to larger jet aircraft.
Real estate in Koh Samui at the higher pricing points is mainly villas and the island has seen two decades of growth with an impressive array of products. Villa rentals continue to attract the luxury market and create an attractive alternative to hotels. One trend in other Thai leisure destinations that the island has avoided is a build-up of midrise condominium hotels (often referred to as condotels), with the local government pushing back on these types of developments. Often relegated to low-rate mass travel and many times unlicensed, their absence is not altogether unwelcomed.
But many island businesses are of the opinion that the failure to expand the existing airport and the lack of a new site with a longer runway remains a blight on the economy. Late last year the Expressway Authority of Thailand (Expat) announced plans for a feasibility study to link Koh Samui and the mainland, via Khanom in Nakhon Si Thammarat. Whether the island needs a bridge or not, many think the money would be better spent in rehabilitating the existing aging infrastructure.
At the end of the day, the old adage ‘Be careful what you wish for, as someday it may come true”, is a telling comment, and in Koh Samui’s case, staying small might be but the best wish of all.
According to C9 Hotelworks new Phuket Hotel Market Update 2023, the resort island’s tourism recovery has accelerated over the past six months. With the removal of Thailand’s pandemic travel restrictions in 2022, airlift quickly ramped up as India and Malaysia were key early source markets.
Over the current winter season aside from the return of the traditional ‘snowbird’ market from Northern Europe and Scandinavia, an influx of Eastern European travelers including those from Russia has spiked demand. Room rates have soared and average stay (ALOS) increased.
Looking ahead at the remainder of 2023, we are looking at a balanced recovery led by the Chinese market. For China, July and August along with National Day holidays in October look to play into a methodical build-up of traffic as airlift returns.
We expect a return to 2019 trading by the year-end of this year and the start of a new tourism cycle in 2024.
To read and download the full report CLICK
Thailand’s “We Travel Together” domestic tourism economic stimulus subsidy will return for a 5th time from February to August 2023.
The government has agreed to a THB3.95 billion budget and will cover 40% of hotel room rates but not exceed THB3,000.
Only Thais are eligible, with a maximum of 5 nights. They will also receive a THB600 e-voucher for food, tours, and traditional massage.
Unlike past programs, airfares are excluded so the program will be most beneficial to ‘drive to’ destinations in the country.
Leading Thai digital media outlet The Thaiger is launching a new start-up technology pitch event ‘The Thaiger Cage’ on 16th January 2023 at the Conrad Bangkok. It is a special prequel to the Thailand Tourism Forum (TTF) 2023, now in its twelfth year and widely considered to be the country’s leading annual hospitality event
The special one-hour pre-event Thaiger Cage will feature five Thailand-based start-ups who have specifically developed hospitality or tourism digital products or apps, pitching to a panel of tech entrepreneurs, moderated by Michael Kenner, CEO of Digital Broker Ventures. Each start-up will have just five minutes to pitch their ideas and business model, followed by five minutes of questions from the panel. At the end of the event, one start-up will be selected as the winner and receive an offer for investment, mentorship, and exclusive featured media exposure from The Thaiger.
The Thaiger Cage is a great opportunity for the local start-up community to collaborate, network, and gain invaluable insights from industry leaders. The event will also provide the opportunity to meet potential investors and create new partnerships as part of the Thailand Tourism Forum 2023. The theme of the forum is Innovation Leadership and is highly focused on creating change in the Thai tourism and hospitality sectors.
Three expert judges from the start-up and VC community who will judge the entries are Bart Bellers, CEO of Xpdite Capital Partners, Pahrada (Mameaw) Sapprasert, Managing Partner of Orzon Ventures, and Thanachat (Chad) Tangsriwong, Chief Representative for CyberAgent Capital.
“We’re excited to be launching our first Thaiger Cage event,” said Michael Kenner, CEO of Digital Broker Ventures. “We believe this event will be a fantastic opportunity for the local start-up community to showcase their early-stage businesses and network within the community”
The organizer of the Thailand Tourism Forum 2023 hospitality consulting group C9 Hotelworks added – coming out of the pandemic, Thailand’s hospitality industry must create a culture of innovation in tourism and hotels to remain competitive. Promoting start-ups and entrepreneurism in events such as this is a logical starting point to attract the best talent in an industry that has experienced a mass exodus of people.
If you operate a hospitality or tourism digital start-up in Thailand and you’re currently looking for investment, or if you know anyone who is – applications can be submitted HERE.
The search for the next big resort destination in Thailand is an absolutely big ask. An expansive country with 77 provinces and an amazing array of diverse geographical locations, Instagram-worthy aspects, and distinctly different nuances. Out of this brazen travel chaos, the endearing term ‘same same, but different’ was born and remains highly relevant.
Yet, one of the simple truths of emerging destinations remains the adage “you can’t stay there if you can’t get there”. Potential is one thing but reality bites when getting to it is just too painful for words. Here in Thailand, one of my favorite places is Koh Samui. It marches to its own drum beat, and the vibe is undeniable. Still, access is never easy, the cost to get there is on the high side, and options for access are limited.
Scanning the Gulf of Thailand, other bohemian beach islands including Koh Chang, Koh Tao, and Koh Phangan all are lovely but suffer a similar challenge, limited transportation access. The search for a modern-day Robinson Crusoe can’t be this hard? Or can it?
The search for azure blue seas stretches of long white sand, and coconut-lined beaches brings me to Khanom. For so many travelers the mention of the name draws a blank stare and the perfunctory ‘where’? Set on the Southeastern Coast of Thailand’s mainland between Surat Thani and Nakhon Si Thammarat. On a clear day, you can see Koh Samui and the famed five islands on the horizon.
Perhaps the cherry on top for Khanom, is that it offers the same stunning beaches as Koh Samui but being on the mainland is a far simpler proposition for a holiday or second home. Drive-to destinations in Thailand during the pandemic and after have been a boom for travelers, and are now an even stronger draw card for hotel and real estate developers. Look at the success of Khao Yai and Hua Hin where nature, space, and accessibility are key ingredients in the mix.
One of preferred demand generators when evaluating resort destinations is airlift. Simply put, the magic carpet effect. Khanom is easily accessible to Surat Thani International Airport and Nakhon Si Thammarat Airport where Thailand’s Department of Airports (DoA) has upgraded infrastructure to double capacity.
Stepping back and looking at property in the area, there is still access to larger land parcels. According to leading Thai property portal FazWaz, investment-grade real estate opportunities with reasonable land cost basis reflect pricing of early stage development.
Based on C9 Hotelworks’ ongoing analysis of Thailand’s resort residential markets, a defined shift back to end-users and urge in second or holiday-home buyers has pushed the sector to the beginning of a new cycle. This signals an uptick in growth but unlike more developed markets like Phuket, Hua Hin, or Koh Samui with prime land parcels soaring, Khanom offers an accessible beach destination with considerably lower underlying land costs. It has airlift, and a well-developed road network.
Taking a final look at Khanom, one of the key success factors in a resort location is DNA and aspect. The memorable views of the nearby outer islands in the Gulf of Thailand give a strong sense of place. Moreso, the nature in the area is amazing, highlighted by an abundance of pink dolphins. If you want wow, you got it. Coming out of the pandemic the pick-up in demand for lifestyle properties is going in a single direction and that’s up. If you haven’t been to Thailand’s Southeastern coast, there is no better time to visit than right now.
The 12th edition of the Thailand Tourism Forum 2023, organized by C9 Hotelworks has opened registration. Set for 16 January 2023 at the Conrad Bangkok the event is the largest annual hospitality gathering in the country. With an impressive set of speakers and quality content, TTF is a live, in-person (no virtual option), ‘must-attend’ industry gathering.
The event program is as follows –
Thailand Tourism Forum 2023 12th Annual Edition
Date: Monday, 16 January 2023
Venue: Conrad Hotel Bangkok
Organizer: C9 Hotelworks Hospitality Consulting Group
Host Event Partner: Hilton
Event Partners: Horwath HTL, STR, JLL Hotels and Hospitality, QUO, Delivering Asia Communications, AMCHAM Thailand, Creative Concept AV, Phuket Hotels Association
2023 Event Schedule and Program
2:00 pm onwards: Registration Open
3:00 pm to 3:50 pm: Prequel – Hospitality Innovation Tech Pitch Competition
4:00 to 5:45 pm: Main Event – Thailand Tourism Forum 2023
Why Thailand Hospitality Must Innovate
Bill Barnett, Managing Director, C9 Hotelworks
Creating a New Hospitality Landscape with Brands
Wallapa Traisorat, Chief Executive Officer and President, Asset World Corporation
(Moderator) David Johnson, CEO, Delivering Asia Communications
Disruption and Change in Hotel Technology and Distribution
Liz Perkins, Vice President – Revenue Management and Commercial Services APAC, Hilton
(Moderator) Charles Blocker, CEO, IC Partners Limited
Thai Hospitality – Culture, Design, Legacy and Now Reinvention
Ho Ren Yung, Senior Vice President – Brand and Commercial, Banyan Tree Group
(Moderator) Sumi Soorian, Executive Director, Phuket Hotel Hotels Association
Ready, Set, Go (Wait) – How Competitive Are Thai Hotels?
Jesper Palmqvist, Senior Director – Asia Pacific, STR
Challenges and Changes in Being a Hotel Owner
Proudputh Liptapanlop, Executive Director, Proud Real Estate PLC
(Moderator) Nikhom Jensiriratanakorn, Director, Horwath HTL
Thailand Hotel Transaction Market Update and Financing
Chakkrit Chakrabandhu Na Ayudhya, Head of Thailand Investment Sales and EVP – Asia, JLL Hotels & Hospitality Group
Brand Thailand Meets ESG, Hello Crunch Time
Catherine Monthienvichienchai, Chief Branding Officer, QUO Global
Changing Paradigms in Thai Tourism – A Look Ahead
Prab Thakral, President and Group CEO, Boutique Corporation PCL
(Moderator) TBC
What is the Hotel of the Future?
Eric Ricaurte, Founder and CEO, Greenview
Wrap Up – The Biggest Bang
5:45 pm onwards, networking drinks
Event Co-Hosts
Bonn Krongsak Paramacharoenroj, Country Manager, ONDA Thailand
Nida Wongphanlert, Managing Owner, 137 Pillars Hotels & Resorts
To register for the event (space is limited and attendance is free) CLICK
