Khao Lak, located in Thailand’s Phang Nga province, differentiates itself from Phuket’s mass tourism as it is dominated by Western travelers, Mr Barnett noted in the “Phang Nga & Khao Lak Hotel Market Update - January 2020” report released by C9 Hotelworks this week.
As of year-to-date November 2019, the province recorded a total of 970,692 guest arrivals at accommodation establishments with most of the hotels concentrated in Khao Lak. Tourism demand remained stable last year with a slight 0.7% growth year-on-year as of year to date Nov 2019, Mr Barnett explained.
“The existing hotel supply in Khao Lak has 154 properties, representing 10,606 keys. Half of the developments are focused on the beach areas located at the center of Khao Lak, namely Bang Niang (20%), Nang Thong (23%) and Khuk Kak (7%),” he said.
“The hotel market continues to be dominated by the wholesale segment with long-haul travelers. Thomas Cook was traditionally one of the largest wholesalers in the market before the company ceased trading in Q3 last year. The impact is expected to be short-term with new bookings redirected through other wholesalers or distribution channels,” he added.
“Aside from stronger destination awareness contributed by existing and upcoming international branded hotels, the Andaman International Airport which is under development north of Phuket is expected to drive a new market cycle for Khao Lak,” he said.
Mr Barnett noted among the current trends for the Khao Lak market that the total number of visitor arrivals to Phang Nga was estimated to surpass 4.88 million last year, indicating a compound annual growth rate of 6% between 2014 and 2019.
“Phang Nga continues to experience an increase in demand during low season, especially in Q2 2019 with visitor arrivals uplifted by 2.5% y-o-y,” he said.
Meanwhile, Mainland China had the highest growth among all top five source markets with a 13% increase as of 2018 – according to the latest available data – compared with the previous year, he added.
Looking forward, Mr Barnett noted, “The upcoming airport located in Khok Kloy, Phang Nga will shorten the travel time to Khao Lak by one hour, which will enable the destination to attract broader visitor demographics.
“The widening of the current road connecting Ranong with Phuket is contributing to benefit the tourism sector with shorter travel time,” he added.
Looking at the hotel supply segment, he also observed, “While 74% of the hotel pipeline in Khao Lak is brand affiliated, independent projects developers have a legacy of success in well-performing independent properties.”
To download the Phang Nga and Khao Lak Hotel Market Report, visit c9hotelworks.com