Samui Hotel Market Update Mid-‐Year Edition October 2016
Hospitality sector gains positive momentum as airport arrivals accelerate with expanded airlift Domestic Nlights remain major vehicle for incoming tourists “Samui is seeing a steady recovery in the tourism industry for the past year, especially in regards to occupancy, which rose at a much faster pace than average daily rate (ADR). This is coherent with the growth in total arrivals, which saw an uptick of 24% from January through June this year as opposed to the same period last year. The wave of new passengers has been driven by additional Nlights from Singapore, Malaysia and within Thailand, with a combined y-‐o-‐y increase of 10% in YTD Nigures as of June. Despite the focus on Asia as a key feeder for airlift, the overall market mix of hotel guests are still slanted towards Western Europeans, representing 36% of total hotel stays last year. The higher spending proNile of the source market has allowed hotels to leverage on premium room rates when compared to other beach-‐centric destinations in Thailand. With that in mind, room rates are expected to remain buoyant.
Trends
Inbound Flights to Samui Airport Number of Flights
%
1,500
25
1,250
20
1,000
15
750
10
500
5
250 0
0 Jan
Feb
2015
Mar
Apr
2016
May
Jun
Growth Rate
Source: Samui Airport Property Fund and C9 Hotelworks Market Research
That said, with Bangkok Airway’s plan to extend its coverage within Mainland China to accommodate demand in tour series, we forecast a growing supply share of lower-‐tier hotels, which are already becoming more visible in the pipeline projects.” Bill Barnett, Managing Director, C9 Hotelworks
Forward Outlook
•
Packaged tours and individual travelers stand at 39% and 61% respectively, with 92% of packaged tours and 79% of FIT’s coming from overseas.
• Samui International Airport’s expansion is pending EIA approval to increase Nlight capacity of 50 Nlights per day to approximately 75 Nlights per day, with 1st phase expected in early 2017.
•
Mainland Chinese arrivals from international Nlights continue to grow y-‐o-‐y for H1 2016 by 26%, followed by Australians at 21%.
• Phuket is the second major feeder of domestic arrivals to Samui after Bangkok, and will increase schedule to 6 Nlights per day in Q4 of this year. • Bangkok Airways is pending approval for additional airlifts to China by end of 2016, adding daily scheduled Nlights from Guangzhou and charter Nlights from Chongqing.
•
Registered guests at accommodation establishments increased by 8% last year for a total of 2,168,677 individuals, with Thai’s accounting for 16% and foreigners 84%.
TOURISM Airline Indicators • Samui International Airport hosted 624,914 total passenger arrivals from both scheduled and non-‐scheduled Nlights during the Nirst six months of this year, with passengers from domestic Nlights representing close to 90% of the incoming trafNic. Samui Airport Arrivals Number of Passengers
Number of Flights
150,000
1,600 1,400 1,200 1,000 800 600 400 200 0
125,000 100,000 75,000 50,000 25,000 0 Jan Feb Mar 2015 Arrivals 2015 Inbound Flights
Apr
May Jun 2016 Arrivals 2016 Inbound Flights
February registered highest growth in both arrivals and inbound 4lights, with positive y-‐o-‐y rise of 34% and 23%
Source: Samui International Airport and C9 Hotelworks Market Research
International Flight Arrival Trend at Samui Airport Number of Passengers 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Mainland China
Australia
United Kingdom
Germany 2014
2015
Hong Kong SAR
Samui Airport recorded an 18% increase in foreign passenger arrivals for January – June of this year
2016
Source: Thailand Department of Tourism and C9 Hotelworks Market Research
Surat Thani Airport Arrivals Number of Passengers 100,000 80,000 60,000 40,000 20,000 0 Jan
Feb
Mar
2015 Arrivals 2015 Inbound Flights
Apr
May
Number of Flights 700 600 500 400 300 200 100 0 Jun
2016 Arrivals 2016 Inbound Flights
Source: Thailand Department of Civil Aviation and C9 Hotelworks Market Research
2
C9 Hotel Market Update: October 2016
Passengers on international and domestic 4lights are up by 18% and 6% respectively for YTD June, with total arrivals growing by 7%
HOTEL MARKET Hotel Performance Performance continues to push up after 2014 slump in both occupancy and ADR due to political events
Overall Performance
% 9 6 3 0
4.9%
-‐5.7% -‐4.2%
2.3%
7.7%
0.9%
-‐3 -‐6 -‐9 FY 2014
FY 2015
YTD Aug 2016
Occupancy Growth
ADR Growth (in THB) Source: STR
Hotel Supply • Samui has 556 licensed accommodation establishments with a total of 21,587 keys. There are 1,329 new keys expected to come on-‐stream by 2019 from 12 pipeline projects. The highest concentration of growth is in Chaweng. Hotel Supply Growth %
Number of Keys
Supply grew 5% last year after 4latlining in 2014, with 100 new keys to be added by the end of this year
25,000
40
20,000
30
15,000
20
10,000
10
5,000
0
0
-‐10 2011
2012
2013
2014
2015
Total Keys
Growth Rate
Source: Thailand Ministry of Tourism and Sports and C9 Hotelworks Market Research
Hotel Name Holiday Inn Express Bophut Holiday Inn Resort Bophut The Samui The Library Koh Samui* Sala Chaweng COSI Hotel by Centara The Park Island Resort Ibis Style Samui SoNitel So Samui X2 Vibe Samui Nautilus Residence The Ritz-‐Carlton, Koh Samui The Beach Samui *Additional keys for existing hotel
Location Bophut Bophut Chaweng Chaweng Chaweng Chaweng Chaweng Chaweng Choeng Mon Plai Laem Plai Laem Thong Krut
Keys 200 150 79 20 140 150 130 129 83 40 187 21
Opening Date TBA TBA Dec 2016 Q1 2017 Q3 2017 Q3 2017 TBA Q1 2017 2019 Q2 2017 Q4 2018 Dec 2016
Source: C9 Hotelworks Market Research
C9 Hotel Market Update: October 2016
3
Samui 2015 Domestic & International Airlift by Country THAILAND
HONG KONG SAR
10,725 Flights
758 Flights
Key Feeders: Bangkok: 7,858 flights (2 airports) Phuket: 1,715 flights (1 airport) Pattaya: 408 flights (1 airport) Chiangmai: 382 flights (1 airport) Krabi: 362 flights (1 airport)
Key Feeder: Hong Kong: 758 flights (1 airport)
MAINLAND CHINA 181 Flights Key Feeders: Kunming: 140 flights (1 airport) Shenzhen: 15 flights (1 airport) Guangzhou: 15 flights (1 airport) Others: 11 flights (8 airports)
SINGAPORE
MALAYSIA
946 Flights
892 Flights
Key Feeder: Singapore: 946 flights (1 airport)
Key Feeders: Kuala Lumpur: 732 flights (1 airport) Penang: 159 flights (1 airport) Johor: 1 flight (1 airport) Source: Samui International Airport and C9 Hotelworks Market Research. Flight Arrivals FY 2015
C9 Hotelworks Company Limited 9 Lagoon Road, Cherngtalay, Thalang, Phuket, 83110, Thailand (OfNice 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