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Labuan Bajo Hotel Market Update

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Labuan Bajo Hotel Market Update Labuan Bajo Hotel Market Update November 2018 Labuan Bajo, a new rising tourism star is born as Asia’s traveller’s head beyond Bali Hotel pipeline targeting upscale Komodo Airport Arrivals travelers to destination Number of Passengers % 250,000 60 “Labuan Bajo is the main gateway to Komodo National Park, which has been designated by 200,000 50 UNESCO as a World Heritage Site since 1991, and 40 was included as “New Seven Wonders of Nature” in 150,000 30 2011. Growing destination popularity is reflected in 100,000 rising tourism numbers, with airport passenger 20 arrivals experiencing a compound annual growth 50,000 10 rate of 31% over the past five years (2012- 2017), combined with expanded domestic flight - 0 connectivity. 2013 2014 2015 2016 2017 Arrivals Growth Rate In the meanwhile, visitors to Komodo National Park increased to 125,069 in 2017, reflecting a Source: Komodo Airport and C9 Hotelworks Market Research compound annual growth rate of 17% since 2011. To permit expansion of Labuan Bajo’s tourism market, As the last sanctuary for the endangered Komodo the government is investing in new public roads and and one of the top diving areas in the world, the infrastructure. Hotel development is also rising in the market is currently dominated by foreign visitors, area with four new internationally branded properties. which accounted for 61% of travelers in 2017. Labuan Bajo is forecasted to shift into a new growth Further, domestic visitation rose dramatically from cycle over the next 12-24 months .” 20% in 2015 by 39% in 2017. Bill Barnett, Managing Director, C9 Hotelworks Trends Forward Outlook • Komodo National Park experienced an uplift in • The airport expansion, Labuan Bajo Marina and domestic visitors, with a CAGR of 43% over the new public roads are the three major infrastructure five-year period from 2012 to 2017. developments currently under construction. • International source markets are dominated by • Hotel pipeline is focused on upscale and luxury tier Western countries, with Europe being the properties affiliated with international brands, largest source region followed by Australia and which is expected to induce demand from travelers North America. with higher spending power. • Excursions organized by local travel agencies • New international and domestic flight connections are the most popular way to visit Komodo are under planning which include direct flights National Park, together with snorkeling and from Singapore, Kuala Lumpur, Darwin, Surabaya, diving activities. Lombok, Makassar and Sumba. TOURISM Demand Indicators Last year, Komodo Airport recorded a total of 217,922 passenger arrivals, which represented a y-o-y growth of 24%. Komodo Airport Arrivals and Flights Number of Passengers Number of Flights 250,000 5,000 Domestic 200,000 4,000 flight arrivals increased 150,000 3,000 significantly 100,000 2,000 between 2012 50,000 1,000 and 2017, - - with a CAGR of 2010 2011 2012 2013 2014 2015 2016 2017 17% Airport Arrivals Flight Arrivals Source: Komodo Airport and C9 Hotelworks Market Research Komodo National Park Visitors Number of Visitors 100,000 Domestic 80,000 visitors to Komodo 60,000 National Park 40,000 have doubled 20,000 over the past 0 two years 2010 2011 2012 2013 2014 2015 2016 2017 Domestic Foreign Source: Komodo National Park and C9 Hotelworks Market Research Seasonality Number of Passenger Arrivals 30,000 25,000 Peak months 20,000 are August and 15,000 December, 10,000 while February 5,000 is the lowest - period Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2015 2016 2017 Source: Komodo Airport and C9 Hotelworks Market Research 2 C9 Labuan Bajo Hotel Market Trends: November 2018 HOTEL MARKET Hotel Supply As of 2016 (latest available data), Labuan Bajo recorded 1,059 keys in registered hotel inventory with the majority of the properties being non-rated. However, pipeline Labuan Bajo hotel properties are focused on international chain hotels with upscale and luxury positioning. Accommodation Establishments Number of Keys % 1,200 40 Hotel supply 900 30 nearly doubled between 2012 600 20 and 2016 300 10 - - 2012 2013 2014 2015 2016 Keys Growth Rate Source: BPS and C9 Hotelworks Market Research Accommodation Establishments by Category Number of Establishments 40 Current hotel supply is 30 dominated by 20 unclassified lodging 10 properties - Rated Hotels Non-Rated Hotels Guesthouses Hostels Camping Source: BPS and C9 Hotelworks Market Research Hotel Pipeline Hotel Name Location Keys Opening Date Hotel Bintang Flores* Pede Beach 45 2018 Laprima Hotel* Pede Beach 60 2019 Sudamala Labuan Bajo Resort** Pede Beach 75 2019 Mercure Komodo Labuan Bajo Resort Badjo 200 2020 Alila Komodo Resort Menjaga Peninsula 120 2021 Courtyard by Marriott Labuan Bajo Komodo Resort Badjo 158 2021 *Additional Keys for Existing Hotel **Redevelopment of Existing Hotel Source: C9 Hotelworks Market Research C9 Labuan Bajo Hotel Market Trends: November 2018 3 Greater Labuan Bajo Area Komodo National Park Labuan Bajo Komodo Island Main Port & Manta Point Komodo Airport National Park Ranger Camp Loh Liang Pink Beach Flores Loh Buaya Padar Island Rinca Island Sumba Sea Top 5 Local Tour Destinations Most Popular Tour/Dive Excursions Padar Island Half-day trip Komodo Island Full-day trip Pink Beach - Komodo Island Diving (2-3 dives / day) Rinca Island Liveaboard (2 - 7+ days) Manta Point 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)76 325 346 www.c9hotelworks.com [email protected].
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