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Mono airlift remains key barrier to Koh Samui’s tourism success

Bill Barnett

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Mono airlift remains key barrier to Koh Samui’s tourism success | The Thaiger
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PHOTO: Koh Samui Sunset

Bill Barnett and c9hotelworks.com analyse the current hotel and tourism challenges on Koh Samui. Bill says that in the past year the Gulf island has been shaken by declining demand and reduced airlift to the island. (graphics below)

“The China slowdown is widely cited as a key factor, together with high airfares. According to Bangkok Airways, half of the company revenue is generated by flight routes connecting with Samui.”

Meanwhile Bangkok Airways has reported a loss in the first half of this year followed by a strategy to cut costs with reduced frequencies for domestic flights. In addition, it has suspended direct flights from Guangzhou, China, and decreased frequencies for flights from Chongqing and Chengdu by 50%.

According to the latest available statistics, airport passenger arrivals to Samui had a marginal growth last year as flight arrivals declined by 3% year on year during the same period. c9hotelworks.com anticipate the downward trend will continue in 2019 as a result of reduced flight connections. Much of the island’s tourism future is linked directly to how Bangkok Airways will address shifting market profiles.

• Market-wide RevPAR decreased by 19% as up to July 2019 compared to the same period in 2018 as a result of a drop in both ADR and occupancy.

Revenue per available room (RevPAR) is a performance metric used in the hotel industry. It is calculated by multiplying a hotel’s average daily room rate (ADR) by its occupancy rate. It may also be calculated by dividing a hotel’s total room revenue by the total number of available rooms in the period being measured.

• Europe continues to be the dominant core source market, representing 46% of the total guest arrivals at accommodation establishments for all of last year.

• Total tourism revenue hit 64 billion baht in 2018, representing a 12% increase compared to the previous year.

Looking ahead…

• Upcoming hotel pipeline is mainly in upper- midscale to upper-upscale tiers, accounting for 80% of the future pipeline with all properties having an international brand affiliation.

• Bangkok Airways has budgeted 692 million Thai baht for the renovation and upgrading of Samui International Airport, with the plan now undergoing an environmental approval process.

• Aside from traditional hotels, alternative accommodation choices of private villa rentals is intensifying accommodation competition.

Mono airlift remains key barrier to Koh Samui's tourism success | News by The ThaigerMono airlift remains key barrier to Koh Samui's tourism success | News by The ThaigerMono airlift remains key barrier to Koh Samui's tourism success | News by The ThaigerMono airlift remains key barrier to Koh Samui's tourism success | News by The ThaigerMono airlift remains key barrier to Koh Samui's tourism success | News by The Thaiger

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Read more headlines, reports & breaking news in Koh Samui. Or catch up on your Thailand news.

Bill Barnett has over 30 years of experience in the Asian hospitality and property markets. He is considered to be a leading authority on real estate trends across Asia, and has sat at almost every seat around the hospitality and real estate table. Bill promotes industry insight through regular conference speaking engagements and is continually gathering market intelligence. Over the past few years he has released four books on Asian property topics.

Tourism

Academics call on government to hurry up and help the tourism industry

Maya Taylor

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Academics call on government to hurry up and help the tourism industry | The Thaiger

Leading Thai academics are calling on the government to get a move on and help the tourism industry before it’s too late. Addressing a gathering arranged by the Foundation for Labour and Employment Promotion, Kiriya Kulkolkran from Thammasat University’s Faculty of Economics, pointed to the 80% drop in international tourism as a result of the Covid-19 fallout. His estimate includes the first few months of the year when there was actually a functional tourism industry in Thailand.

According to a report in the Bangkok Post, Kiriya says just 4% of businesses in the tourism sector say they’ve made the same amount or more than they did before Covid-19. She adds that a survey shows employees in the industry are concerned about debt accumulation and “extremely worried about the future”.

Bovorn Subsing, from Chulalongkorn University’s Social Research Institute, has backed up the comments, saying tourism workers have seen their wages drop by 60%, while still facing the same, or higher, cost of living. The result is that most are now in debt.

Kiriya predicts the devastation could continue for over 3 years, affecting not just tourism operators but the entire supply chain, as well as new graduates and those seeking their first job. She says that until the sector recovers, the government needs to provide tailored help for businesses, singling out Phuket hotels, who are struggling to survive without foreign guests.

The islands of Phuket and Samui, plus the other ‘tourist’ islands around Thailand, are facing a particular problem as they’re mostly geared for the international tourist market. Domestic tourism, rebooted last July when the local airlines were permitted to fly again, has mostly shunned the popular tourist islands.

One worker at a Phuket hotel, 52 year old Anchisa Sirinanthasak, addressed the forum in support of a possible co-payment scheme for hotel workers. It’s understood most hotel operators are paying employees 62-75% of their normal salary, which works out at around 8,000-9,000 baht per person and is not enough to cover their costs.

Meanwhile, Manop Kaewphaka from Homenet Thailand, a non-profit that protects home-based workers, has called on the government to allow foreign tourists back into the Kingdom and to provide more support for informal workers, in the form of wage guarantees and co-payment.

SOURCE: Bangkok Post

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Visa

Foreigners report alleged visa scam in Koh Samui

Caitlin Ashworth

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Foreigners report alleged visa scam in Koh Samui | The Thaiger
PHOTO: 77kaoded

A Thai woman in Koh Samui allegedly ripped off at least 8 foreigners by offering visa extension services and taking off with the money. A group of foreigners reported the scam to officers at the Bo Phut police station, saying they placed deposits ranging from 10,000 baht to even 100,000 baht, but the services were never fulfilled.

A man posted a video on Facebook warning people about the alleged scam and saying he believes the woman stole around 10 million baht. A Thai TV news report shows a J&R Accounting business card for “Joy” which advertises accounting and work permit services.

“Be careful with your visa… There are a lot of people that just want your money and they don’t give the service.”

Apparently, some of the foreigners paid a deposit 6 months ago. They say Joy kept reassuring them that their applications processing. Now that visa amnesty is up, the foreigners worry about potential problems with immigration, Thai media reports.

Police told Thai media that this isn’t the first time they’ve heard of Joy. They issued a summons for her in the past. If she does not respond to the second summons, the police may go to court and request a warrant for her arrest.

A little over a week ago, at the neighbouring island Koh Pha Ngan, a language school allegedly ripped off more than 100 foreigners, claiming they were able to issue them with a 1 year education visa.

SOURCE: Thai Visa

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Tourism

Phuket & Koh Samui face financial ruin in the short to medium term – VIDEO

The Thaiger

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Phuket & Koh Samui face financial ruin in the short to medium term – VIDEO | The Thaiger

Phuket and Samui are both islands, fed mostly by arrivals at their international airports. Of course, both remain closed and the islands are trying to survive on a dribble of domestic tourists. And there’s no sign of hope any time soon for the future. Bill Barnett is ‘Mr Hotel & Hospitality’ for Thailand and the region. What does he see as the short and long term solutions? Your comments are also welcome, below. You can also watch our stark report about how empty Phuket actually is HERE.

Bill is the MD and leading consultant forc9hotelworks.com

 

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