Phang Nga & Khao Lak Hotel Market Update January 2020
Increasing hotel supply with stable tourism growth reflects a destination market entering a new cycle
Upcoming airport expected to push destination to diversify offerings
“Khao Lak, located in Thailand’s Phang Nga province, differentiates itself from Phuket’s mass tourism as it is dominated by Western travelers. As of year-to-date November 2019, the province recorded a total of 970,692 guest arrivals at accommodation establishments with most of the hotels concentrated in Khao Lak. Tourism demand remained stable last year with a slight 0.7% growth y-o-y as of YTD Nov 2019. The existing hotel supply in Khao Lak has 154 properties, representing 10,606 keys. Half of the developments are focused on the beach areas located at the center of Khao Lak, namely Bang Niang (20%), Nang Thong (23%) and Khuk Kak (7%). The hotel market continues to be dominated by the wholesale segment with long-haul travelers. Thomas Cook was traditionally one of the largest wholesalers in the market before the company ceased trading in Q3 last year. The impact is expected to be short-term with new bookings redirected through other wholesalers or distribution channels.
Trends
Phang Nga Hotel Guest Arrivals Number of Guests at Accommodation Establishments
%
1,150,000
15
1,100,000
10
1,050,000
5
1,000,000
0
950,000
-5
900,000
-10
850,000 800,000
-15 2014
2015
2016
2017
Total
2018
2019 (F)
Growth Rate
Source: Thailand Ministry of Tourism and Sports and C9 Hotelworks Market Research
Aside from stronger destination awareness contributed by existing and upcoming international branded hotels, the Andaman International Airport which is under development north of Phuket is expected to drive a new market cycle for Khao Lak.” Bill Barnett, Managing Director, C9 Hotelworks
Forward Outlook
•
The total number of visitor arrivals to Phang Nga is estimated to surpass 4.88 million last year, indicating a compound annual growth rate of 6% between 2014 and 2019.
•
The upcoming airport located in Ko Kloy, Phang Nga will shorten the travel time to Khao Lak by one hour, which will enable the destination to attract broader visitor demographics.
•
Phang Nga continues to experience an increase in demand during low season, especially in Q2 2019 with visitor arrivals uplifted by 2.5% y-o-y.
•
The widening of the current road connecting Ranong with Phuket is contributing to benefit the tourism sector with shorter travel time.
•
Mainland China has the highest growth among all top five source markets with a 13% increase as of 2018 (latest available data) compared to the previous year.
•
While 74% of the hotel pipeline in Khao Lak is brand affiliated, independent projects developers have a legacy of success in wellperforming independent properties.
TOURISM Demand Indicators Phang Nga Visitor Arrivals Number of Visitor Arrivals 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 2013
2014
2015
2016
2017
International
2018
2019 (F)
Domestic
Market share ratio between international and domestic segments stable over past three years, averaging 71% and 29%, respectively
Source: Thailand Ministry of Tourism and Sports and C9 Hotelworks Market Research
Phang Nga Seasonality Number of Visitor Arrivals
600,000 500,000 400,000 300,000 200,000 100,000 Jan Feb Mar Apr May Jun 2017
Jul Aug Sept Oct Nov Dec
2018
2019 (F)
Source: Thailand Ministry of Tourism and Sports and C9 Hotelworks Market Research
Seasonal trading indicates same pattern with stronger growth in Q4 2019 compared to the same period of previous year
Phang Nga Geographic Source of Business - 2018 Top 5 International Source Markets 11%
4%
Europe
24% 61%
1. Germany
3.8%
2. Mainland China
13%
3. Australia
4.4%
Asia OCEANIA Others
4. Russia
17.4%
5. France
1.1%
Source: Thailand Ministry of Tourism and Sports and C9 Hotelworks Market Research
2 2
C9 Phang Nga & Khao Lak Hotel Market Trends: Jan 2020
HOTEL MARKET Phang Nga Accommodation Establishments
As of 2018, there are 345 accommodation establishments in Phang Nga, totaling 13,356 keys
Number of Establishments
%
350
60
300
50
250
40
200
30
150
20
100
10
50
0
0
-10 2013
2014
2015
2016
Total
2017
2018
Growth Rate
Source: Thailand Ministry of Tourism and Sports and C9 Hotelworks Market Research
Phang Nga Hotel Occupancy
Market-wide occupancy remained at 65% as of YTD November 2019 (latest data)
% 100 80
60 40 20 2016
2017
2018
YTD Nov 2018
YTD Nov 2019
Source: Thailand Ministry of Tourism and Sports and C9 Hotelworks Market Research
Khao Lak Hotel Pipeline Currently, there are seven pipeline projects in Khao Lak and two existing properties adding additional hotel rooms, totaling 2,239 keys. The hotel pipeline has a strong trend towards branded properties with five out of seven developments having an international brand affiliation. Hotel Name JW Marriott Khao Lak Resort & Spa* Avani Khao Lak Pullman Khao Lak Sheraton Khao Lak Khao Lak Marriott Resort & Spa Holiday Inn Resort Khao Lak Katathani Group (Unnamed) La Flora Khao Lak* S Khao Lak *Additional keys for existing hotels
Location Khuk Kak Bang Sak Nam Kaem Nam Kaem Bang Muang Pakarang Cape Nang Thong Bang Niang Nam Kaem
Keys 180 328 252 252 300 350 119 152 306
Opening Date Q4 2020 2020 2023 2023 2023 2023 N/A N/A N/A
Source: C9 Hotelworks Market Research
C9 Phang Nga & Khao Lak Hotel Market Trends: Jan 2020
3
Khao Lak Hotel Supply By Location Surin Islands
Nam Kaem Beach Hotels: 4 Keys: 155
Bang Sak Beach Hotels: 7 Keys: 882
Pakarang Cape Hotels: 14 Keys: 891
Pak Weep Beach Hotels: 3 Keys: 855
Similan Islands
Khao Lak Center
Bang Niang Beach Hotels: 51 Keys: 2,092
Khuk Kak Beach Hotels: 13 Keys: 764
Other Areas Hotels: 27 Keys: 2,572
Nang Thong Beach Hotels: 35 Keys: 2,395
Source: C9 Hotelworks Market Research.
C9 Hotelworks Company Limited 9 Lagoon Road, Cherngtalay, Thalang, Phuket, 83110, Thailand (Office located at the entrance of Laguna Phuket) T: +66 (0)76 325 345 www.c9hotelworks.com info@c9hotelworks.com