Koh Samui hotel rates on the rise
KOH SAMUI: Koh Samui has been quietly going about its hotel business with high-end property openings that are driving occupancies and rates higher and establishing the destination resort island as a bright spot on the horizon.
According to C9 Hotelworks’ 2011 Hotel Market Update released yesterday, upscale hotel demand drove market-wide average room rates up 16% and spiked occupancy 6% last year.
“New direct overseas flights from key regional hubs in Singapore, Malaysia and China are aiding rather than abetting the cause, with total international passenger arrivals from 2007-2011 increased at a compound annual growth rate (CAGR) of 7%,” said C9’s managing director Bill Barnett.
“Growth in luxury and upscale properties is spurring the cyclical pattern of volume and average rates forward.
“Be it induced demand or a reaction to overcrowding in Asia’s key leisure destinations, the storyboard is etching a niche into the market,” he said.
The report reflects a changing profile of visitors with China, Korea and Japan accounting for 63% of total Asian hotel guests.
Germany remained the top overall source with 14%, from a list that includes the UK with 8%, followed closely by Australia just one percentage point down on that.
The demographics showed that the island’s reliance on international travellers will rise in the next five years.
Intercontinental Samui Baan Taling Ngam is the latest luxury resort joining the island’s brand parade.
“Looking inside the numbers, the lack of a low-cost airline service to Koh Samui has restrained local demand, unlike other Thailand destinations such as Phuket.
“This can be seen as a hindrance in terms of volume but in terms of attracting travellers with high disposable income and limiting the impact of the island’s strained infrastructure it is a positive development,” Barnett added.
The research showed that at the end of last year there were 448 hotels with 17,204 rooms in Samui.
Viewing the development pipeline for the next few years there will only be a 3% rise in supply with 513 new rooms coming into inventory. — The Nation