The twosome of Bangkok’s Airways International expansion and emergence of Surat Thani as a secondary aviation gateway has dramatically altered the tourism footprint in Thailand’s second most popular resort island, Samui. Market-wide hotel occupancy hit 72% in 2016 and airport arrivals pushed over the 1.2 million threshold.
Data from consulting firm C9 Hotelworks’ latest Samui Hotel Market Update reflected an altered state in the hospitality sector, with mainland Chinese travelers now filling in the gaps of a once highly seasonal destination. During the first nine months of last year the China-led rush resulted in 61% growth in volume compared with the same period the year before.
Looking into the future, C9’s report reflects positive market sentiment and a strong balance between supply and demand in the incoming development of new hotels. One of the most anticipated openings in 2017 is the 175-key Ritz-Carlton Koh Samui from Malaysia’s YTL Group.
While the impact of “Chinacation” has not cut hotels’ average rates, with the destination primarily attracting individual travelers, there are signs of a shift in the demand. With the steady growth of airlift to Surat Thani Airport, Samui is expected to attract a broader market of midscale and upscale segments with pipeline hotels weighted toward these types of products.
Much of the momentum can be attributed to Bangkok Airways’ international expansion, which has shifted focus from Southeast Asia to North Asia. In the second quarter of this year the carrier will increase flights from Samui to Chengdu to daily service and is expected to add Chongqing at a later date. Currently a THB1 billion upgrade for the island airport is under a bidding process and first-phase work is expected to commence this year.
“Samui’s airlift is no longer a one trick pony with the emergence of nearby Surat Thani as a secondary gateway,” said C9 Hotelworks Bill Barnett. “Flight arrivals last year to the latter spiked up by 30% and are forecasted to grow further in 2017.”
Just as Thailand has seen the twin airport story in Bangkok play out with Suvarnabhumi and Don Mueang, the plug and play model for the resort-led market of Samui is benefitting from both strong domestic and international trajectory from Bangkok Airways but also the low-cost carrier rapid fire expansion in Surat Thani.