COLLIERS QUARTERLYHALF YEAR HOTELHOTEL || BANGKOKKOH SAMUI | H2| 2H 2018 2019 | JANUARY 2020 KOH SAMUI HOTEL MARKET Phattarachai Taweewong Research | Associate Director| Thailand 2H 2019 (+66) 86 546 3683 [email protected] 2020-2022 Summary & 2019 Average per year Recommendations Throughout the year 2019, there are 2.3 million tourists, Waras Dechgitvigrom estimated that the number of tourists for the whole year -9.5% +8.7% Research | Manager| Thailand will decrease by around 200,000 people, as well as the (+66) 82 398 6893 spending power that will decrease by about 20%, which [email protected] "Since the number of foreign tourists Demand shows signs of a recession. The strong Baht currency also 2,300,000 2,500,000 visiting Thailand in 2019 has decreased, has an effect on the tourism sector in Koh Samui. affecting the tourism business in Koh Samui, both in terms of room rates and occupancy. The operators have reduced +3.2pp room rates in order to be able to compete At the end of Q3 2019, the cumulative supply of hotels with competitors. The overall average in Koh Samui was approximately 23,387 rooms from which increased by 729 rooms, or about 3.2% y-o-y. occupancy rate has also decreased, Supply 23,387 1,000 reflecting the slowdown in the tourism market in Koh Samui in the past year. In addition, with the supply of more than 2020-2022 23,000 rooms and more than 1,500 rooms 2019 Average per year under construction, Koh Samui is in demand of more tourists in the future." At the end of Q3 2019, the average occupancy rate of -14.0pp +5.0pp all Upper Scale hotels in the Koh Samui was approximately 65%, which decreaased from the Occupancy average occupancy rate in 2018 at around 14%. 65% 70% 0% -2.20% The average daily room rate for all Upper Scale hotels in the Koh Samui at the end of Q3 2019 was approximately THB4,720, which was 2.2% lower y-o-y. It is predicted THB 4,720 Rent that by 2020, the average daily room rate for all Upper THB 4,720 Scale hotels in Koh Samui will remain stable. COLLIERS HALF YEAR RESIDENTIALHOTEL | KOH | CHASAMUI AM, | 2HHUA 2019 HIN |AND JANUARY PRANBURI 2020 | H2 2018 Number of arrivals at Koh Samui International Number of arrivals at Koh Samui International Airport as of 2H 2019 Airport Numbers of Arrivals Samui International Airport is the main gateway to travel to Koh Samui. The tourism 1,600,000 businesses in Koh Samui have benefited from the increasing number of international flights and the growing number of partner airlines traveling to Koh Samui International Airport. As the number of international arrivals continues to increase in 2017, the number 1,200,000 of tourists continues to increase and grow by about 15% in 2018 as well as the increase in flights at Surat Thani Airport which can be another intermediary to connect travel to Samui. 800,000 From the figures, it was found that during the past 9 months of 2019, there were more than 975,568 foreign tourists visiting Koh Samui both domestically and internationally, 400,000 divided into 542,523 domestic tourists and 433,405 foreign tourists. During August is still the month with the most tourists visiting Koh Samui in the last 9 months, about 139,386 people. Like in 2018, the number of arrivals increased during the season to reflect market 0 changes of tourists in the region. 2013 2014 2015 2016 2017 2018 Q3 2019 For the development of the hotel business in the future, it will still focus on the luxury Source: Research, Colliers International Thailand hotels, with a total of approximately15 hotels under construction. As well as the growth trend in the hotel business market in Thailand, which is mostly in collaboration with international hotel brand partners. 2 COLLIERS HALF YEAR RESIDENTIALHOTEL | KOH | CHASAMUI AM, | 2HHUA 2019 HIN |AND JANUARY PRANBURI 2020 | H2 2018 The Tourism Demand indicator The number of passengers have been up to 0.975 million people for this year at Koh Samui International Airport as of September 2019, representing a decrease over 10.33% y-o-y. Number of flights arriving at Koh Samui Airport, Jan - Sep 2019, monthly classified Flight Jan Feb Mar Apr May June July Aug Sep Type 1: Cressna 10 12 12 8 10 6 5 9 6 Type 2: Dash 7 6 4 4 1 5 2 0 5 0 Type 3: ATR 482 448 376 321 277 274 340 445 253 Type 4: Boeing, Airbus 861 864 873 874 810 776 933 955 797 Total 1,359 1,328 1,265 1,204 1,102 1,058 1,278 1,414 1,056 Source: Samui Airport Leasehold Property Fund and Colliers International Thailand As of Q3 2019, there were more than 11,044 flights landed at Koh Samui International Airport, although this has decreased by 580 flights or 4.98% y-o-y of the total of approximately 11,644 flights. However, considering the numbers of tourists, it will be found that although the flight has decreased, the number of tourists has increased by 4.9% y-o-y. 3 COLLIERS HALF YEAR RESIDENTIALHOTEL | KOH | CHASAMUI AM, | 2HHUA 2019 HIN |AND JANUARY PRANBURI 2020 | H2 2018 Number of passengers departing from Samui Airport Passenger Jan Feb Mar Apr May June July Aug Sep type Domestic 71,737 74,301 66,870 61,351 45,615 43,228 57,648 78,053 43,720 International 47,667 53,990 56,009 48,310 39,537 39,039 49,420 61,333 37,740 Total 119,404 128,291 122,879 109,661 85,152 82,267 107,068 139,386 81,460 Source: Samui Airport Leasehold Property Fund and Colliers International Thailand And from the number of passengers departing from Samui Airport, it was found that at the end of Q3 2019, there were approximately 975,568 passengers departing from Samui Airport, categorised as approximately domestic passengers 542,523 people, accounting for 55.6% of all passengers departing from Samui International Airport. down from the previous period by about 11.92% and there were approximately 433,405 international passengers, representing 44.4%, down from the same period last year by about 81.9%. If comparing the number of passengers leaving the airport, a total of 975,568 people at the end of Q3 2019 with the same period of the previous year showed that the number was reduced to 112,473 people from 2018 at approximately 1,088,041 people or 10.33% decrease and decreased from the same period in 2017 at approximately 1,037,156 people or equivalent to 5.93%. From the figures, it was found that during the past 9 months of 2019, there were more than 975,568 foreign tourists visiting Koh Samui both domestically and internationally, divided into 542,523 domestic tourists and 433,405 foreign tourists. During August is still the month with the most tourists visiting Koh Samui in the last 9 months, about 139,386 people. Like in 2018, the number of arrivals increased during the season to reflect market changes of tourists in the region. 4 COLLIERS HALF YEAR RESIDENTIALHOTEL | KOH | CHASAMUI AM, | 2HHUA 2019 HIN |AND JANUARY PRANBURI 2020 | H2 2018 Top 5 tourists staying in hotels in Koh Samui Top 5 tourists staying in hotels in Koh Samui, classified by nationalities, as of 2H 2019 The top 5 foreign tourists visiting Koh Samui during the first 3 quarters of the year 2019 were 392,095 tourists from Germany, followed by 334,099 Numbers of tourists staying in hotels in Koh Samui classified by nationalities tourists from China, 245,987 tourists from Eastern Europe, 197,772 tourists 400,000 from Australia and 155,359 tourists from England and other national tourists such as Russia and Korea. The number of Thai tourists increased to 15% y-o-y, rose from about 10% of the total number of tourists arriving in 300,000 Koh Samui. While the number of foreign tourists was up to 85%, but due to the global tourism competition, Chinese tourist market slows down due to 200,000 the strength of Thai Baht, resulting in the tourism market in Koh Samui to decline slightly. From the situation of the Thai baht appreciation at about 100,000 THB30 per US dollar, it is affecting tourism, especially foreigners who travel to Koh Samui. According to the forecast throughout the year 2019, there 0 are 2.3 million tourists. It has been forecasted that the whole year will Germany China East Europe Australia England decrease by around 200,000 people, including the spending power will decrease by about 20% which makes the signs of the economy deteriorate. Source: Research, Colliers International Thailand 5 COLLIERS HALF YEAR RESIDENTIALLUXURYHOTEL | HOTELKOH | CHASAMUI | BANGKOK AM, | 2HHUA 2019 |HIN H1 | AND2019 JANUARY PRANBURI 2020 | H2 2018 An overview of Hotel Market Room supply in Koh Samui classified by year as of 3Q 2019 Room supply in Koh Samui classified by year Number of Keys The number of rooms in Koh Samui in year 2012 was 19,857 rooms and stable at 20,519 25,000 rooms between 2013-2014 due to operators not being confident with the political situation in the country. In 2015, the number of guest rooms increased to 21,587 rooms and decreased 22,000 to 21,429 rooms due to the closure and undergoing maintenance for some hotels. However, since 2019, supply has been steadily increasing, especially in the 4-5 star hotel market in Koh 19,000 Samui and tend to continuously rise from both domestic and foreign investors.