Samui Hotel Market Update March 2014
Surat Thani airport emerging as second ‘Plan B’ island gateway Triple digit growth of Chinese and Russian travelers “In 2013, Samui saw a record high 1.7 million travelers visit the island. Foreign visitors account for 88% of the total market, with nearly half coming from Western Europe. A key stimulator of demand has been the rising prominence of Surat Thani airport as a second gateway to Samui. Passenger arrivals substantially grew at 38% and 32% in 2012 and 2013. Low-cost airlines and non-scheduled flights (charters) are lead indicators pushing up airlift. While Samui’s airport capacity hit 86% in 2013, the second mainland gateway has the ability to drive numbers up. Hotels across the island enjoyed an upswing in performance during the year. Room night demand and average daily rates increased at 5% and 7% over 2012. The key metric of RevPAR
Samui vs. Surat Thani Airlift No. of Passenger Arrivals 1,200,000
% 40
1,000,000
30
800,000
20
600,000 400,000
10
200,000 2009
2010
Samui Annual Growth of Samui
2011
2012
2013
Surat Thani Annual Growth of Surat Thani
Source: Department of Civil Aviation and C9 Hotelworks Market Research
registered double digit growth of 14% spurred by higher room rates. The island landscape is seeing a growing impact from the mass tourism sector, mainly from China and Russia. In 2013, these markets shot up by 127% and 171% compared to 2012. It remains to be seen if the shift will be sustained or is a cyclical trading pattern.” Bill Barnett, Managing Director, C9 Hotelworks
2013 Trends
2014 Outlook
• Total passenger arrivals through Samui Airport continued
• Luxury and upscale tier hotels will continue to
to increase year-on-year, registering a 6% compound annual growth rate between 2007 through 2013.
• Surat Thani airport was increasingly a factor, driven
by AirAsia's and China Eastern Airlines’ direct flights from Malaysia and Mainland China. Non scheduled airline flights delivered nearly 60,000 passengers during the year.
• Hotel-wide performance achieved 73% occupancy,
with an average room rate and RevPAR of US$156 and US$112, respectively.
perform well given steady growth in the affluent visitor profile. Midscale and lower tier properties face challenges from growing mass tourism demand.
• The sustained trend of high load factors on
international flights demonstrate pent up demand for direct flights to the island.
• It is expected that a limited number of new
hotel projects will come into the planning and development stage during the year.
TOURISM Airline Indicators • Total passenger arrivals through Samui Airport registered 5% growth in 2013 vs. 2012. The international sector was highlighted by a 37% year-on-year surge while the domestic leg rose marginally by 2%. • International inbound passengers sharply rose between 2008 and 2013, recording a compound annual growth rate of 16%. Over half of these arrivals came from Hong Kong.
Samui Airport Visitor Arrivals Number of Passengers 1,200,000 1,000,000
International flights accounted for 16% of air traffic in 2013 compared to 6% in 2007
800,000 600,000 400,000 200,000 2006
2007
International
2008
2009
2010
Domestic
2011
2012
2013
Total Passengers
Source: Department of Civil Aviation and C9 Hotelworks Market Research
Number of International Flights
Arrivals from Key Overseas Cities
Number of Flights
%
Number of Passengers
2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200
20 18 16 14 12 10 8 6 4 2
70,000
120
60,000
100
50,000
80
40,000
60
30,000
40
20,000
20
2007
2009
No. of Flights
2011
%
10,000
0 -20 Hong Kong
2013
International to Total Traffic Ratio
2012 Passengers
Source: Department of Civil Aviation and C9 Hotelworks Market Research
Singapore 2013 Passengers
Kuala Lumpur Annual Growth of Passengers
Source: Department of Civil Aviation and C9 Hotelworks Market Research
Tourism Indicators • The top three European countries in 2013 were Germany, Russia and the U.K. with a 17%, 13% and 9% market share respectively. European travelers represented 66% of visitors to the island during the year.
Total
% 100 80
20
% 100
100
80
60 40
Key Geographic Sources Market Share Europe % Asia 80
60 7% 7% 4% 10% 9% 2012 U.K. Australia
_ <> + + +
6% 7% 9% 11% 12% 2013
Russia Germany
Thailand
40 20
3% 4% 13% 7% 17%
+ + _ + <>
2012 Switzerland Italy
4% 5% 9% 13% 17% 2013
U.K. Russia
Germany
40
4% 4% 4% 11%
20
37%
60
_ <> + + +
2012 Japan Malaysia
3% 4% 6% 22%
58%
2013 India China
Thailand
Source: Surat Thani Provincial Office of Tourism and Sports and C9 Hotelworks Market Research
2
C9 2013 Hotel Market Update: March 2014
HOTEL MARKET Hotel Performance • Island-wide market performance registered 5% growth in occupied room nights in 2013. • The upscale accommodation segment registered Samui’s top occupancy achieving 76%, following by midscale properties with 73%. Budget and economy and luxury hotels hit 70% and 66% respectively.
Performance by Tier
Performance by Key Locations
%
US$
%
US$
100
600
100
400
80
450
60
80
300
60 300
40
200 40
150
20
Luxury
Upscale
Midscale
2012 Average Room Rate 2012 Occupancy
Budget & Economy
100
20
Chaweng
2013 Average Room Rate 2013 Occupancy
Bo Phut
Mae Nam
2012 Average Room Rate 2012 Occupancy
Source: C9 Hotelworks Market Research
Lamai & Maret
2013 Average Room Rate 2013 Occupancy
Source: C9 Hotelworks Market Research
Monthly Performance 2013 vs. 2012
m be r O ct ob er N ov em be r D ec em be r YT D De c
te
us t
y
Bo Phut led island occupancy with 76%, closely following by Chaweng at 75%
Se p
Au g
Ju l
Ju ne
M
Ap
2012 Average Room Rate
ay
200 180 160 140 120 100 80 60 40 20 ril
US$
Ja nu ar y Fe br ua ry M ar ch
% 100 90 80 70 60 50 40 30 20 10
2013 Average Room Rate
2012 Occupancy
2013 Occupancy
Source: Thai Hotels Association and C9 Hotelworks Market Research
Hotel Openings • In 2013, there were 299 rooms added into Samui’s registered accommodation inventory, which now has a total of 17,778 hotel units. • By the end of this year, 268 keys are anticipated to enter the market, added in the vicinity of Chaweng and Bo Phut. Hotel Name
Location
Ozo Samui Sala Chaweng (conversion and expansion of Muang Kulaypan Hotel) Prana Resort Nandana Sofitel So Samui Mövenpick Resort & Spa Mae nam Beach Koh Samui
Chaweng Chaweng Bo Phut Choeng Mon Mae nam
*To Be Announced
Rooms 208 60 60 120 80
Opening Date Q1 2014 2016 Jul 2014 2016 TBA*
Source: C9 Hotelworks Market Research
C9 2013 Hotel Market Update: March 2014
3
About C9 Hotelworks C9 Hotelworks is an internationally recognized consulting firm with extensive experience in the Asia Pacific region. Its core business focus includes: Hotel and Resort Development Asset Management / Ownership Representation Project Feasibility and Analysis Key competencies include international hotel operator search, selection and contract negotiation, mixed use hotel and residential planning and operation reviews.
Bill Barnett
Managing Director
A wide range of both institutional and private developers and a comprehensive portfolio of completed projects give C9 the skill set and background to focus on key issues, evaluate complex ones and assist clients in achieving solid results. Based in Phuket, Thailand and led by Managing Director Bill Barnett, who has 29 years of experience in Asia PaciďŹ c, the ďŹ rm is well positioned to serve an increasingly demanding marketplace.
The Source for all Hotel and Real Estate News www.thephuketinsider.com
C9 Hotelworks Company Limited 9 Lagoon Road, Cherngtalay, Thalang, Phuket, 83110, Thailand (Office located at the entrance of Laguna Phuket) T: +66 (0)76 271 535 F: +66 (0)76 271 536 www.c9hotelworks.com info@c9hotelworks.com