2014 a ‘mixed bag’ for hotels in the region

Posted on January 12th, 2015

Category: Absolute Hotels Absolute Resorts

Cushman & Wakefield has published HotelViews 2015 – its annual report covering hotel market performance in 18 cities across Asia, describing performance in Southeast Asia as “a mixed bag”, due in part to political uncertainty in Thailand.

In the first eight months of 2014, the report states, the Asia Pacific region welcomed 5 per cent more international tourists (overnight visitors) compared with the same period in 2013, with more than 1.1 billion tourists expected by the year-end.

According to the UN World Tourism Organisation (UNWTO), the two international stars were South Asia and North America, which both showed growth of 8pc.

Arrival growth in Southeast Asia was however, hit by regional geopolitics and negative reactions to aviation incidents.

Southeast Asian posted arrival growth of 2pc despite previous robust growth in 2012 and 2013. This, in turn, pulled down wider Asia Pacific growth to 5pc from January to August 2014 compared with 7pc in over the same period in 2013.

Hotel performance across the region was a ‘mixed bag’. Geopolitical instability in Vietnam, political uncertainty in Thailand and Hong Kong, and negative reactions to aviation incidents dented demand.

Bangkok, Kuala Lumpur and Singapore experienced softer arrival figures due to these events and the inclination for multi-city itineraries.

As a result, Bangkok hotels took a battering, with occupancies expected to close 2014 down by 15.1pc. KL is likely to be down by 2pc and Singapore by 1.5pc.

The report forecasts that Average Occupancy Rate in Bangkok will end 2014 at 63pc, down 11 points from 2013, when AOR was 74pc.

It predicts, “As the Bangkok hotel market has been particularly impacted by prolonged political tensions from 2013 to 2014, major declines in occupancy (then ADR) have been seen since the strong performance witnessed in the preceding year.

The market has since responded by collaborating to promote the city and reassure travellers that all is ‘business-as-usual’, and relative stability has led to quiet improvements in sentiment.

“In a positive move to boost the Thai travel and tourism industry, the Immigration Bureau has allowed citizens of 48 countries and one territory to get a 30-day extension of their stay in Thailand after the expiry of their normal period of stay.

“While international arrivals have yet to fully recover, Bangkok has a history as a resilient market, hotel performance is expected to rebound strongly as concerns … dissipate, with a healthy revival of ADR and occupancy in the medium term.”

The report predicts a revival in 2015 in Bangkok AOR to 67pc, with average daily rates (ADR) climbing to B3,450 and revenue per available room (RevPAR) to B2,309.

In contrast with Bangkok, Indonesia is the star, with demand in both Jakarta and Bali continuing to push up ADR and drive growth in RevPAR.

Singapore at US$207, Hong Kong at US$193 and Sydney at US$185 are expected to top the region with the highest ADRs in 2014.

In local currencies however, the markets with the fastest-growing rates year-on-year in 2014 are expected to be Jakarta at ID Rupiah 1.2 million, at 15.0pc growth, Tokyo at JP Yen 16,465 at 7.1pc growth and Ho Chi Minh at VN Dong 1.9 million with growth at 6.5pc.

Strong Occupancy growth to 64pc in Shanghai is also expected to boost RevPAR to CN Yuan 417, a 12pc growth over RevPAR in 2013.

Continuing economic growth and enhanced flight connectivity remain strong fundamentals for future growth. Asia Pacific’s growing and increasingly affluent middle-class is the key driver for this growth.

The report can be downloaded by going to tinyurl.com/Hotels2015.

Phuket International Boat Show 2015 biggest showcase yet

Posted on January 9th, 2015

Category: Absolute Hotels Absolute Resorts

‘With 51 boats on display, together with luxury cars, real estate, marine products and services and more, makes this the largest Phuket International Boat Show ever – PIMEX 2015’

The 12th Phuket International Boat Show (PIMEX) presented by Thailand Elite was officially opened today at a ceremony presided over by the Governor of Phuket Province, Mr. Nisit Jansomwong. Showcasing Phuket’s marine and leisure credentials to the world, PIMEX is held during Phuket’s peak tourism season from eighth to 11th January, at the award-winning Royal Phuket Marina. Organisers expect a strong visitor turnout from Thailand and overseas, in particular Singapore, Hong Kong, China and Russia.

‘The line-up of exhibitors at this year’s PIMEX, both in-the-water and onshore, is one of the best yet, a strong sign of the strength of Thailand’s marine and lifestyle industry. Yachting and lifestyle brands from around the world are displaying here in Phuket at PIMEX, underscoring PIMEX’s position as the consumer boat show in the region and Phuket as the marine playground for Asia,’ said Mr. Andy Dowden, PIMEX Show Director.

With over 6 Billion Baht of product on display, PIMEX 2015 is set to break records.

At 51, this year sees one of the largest boat displays at PIMEX ever. From the smallest at less than 20 foot and priced under 2,000,000 Baht, the boats grow in size and price with seventeen over 20 metres in length including large motor yachts from Sunseeker, Princess, Monte Carlo and Sanlorenzo. The largest boat on display this year is a Custom Line NEXT 112 superyacht valued at approximately 430,000,000 Baht and which forms part of a four boat display by Lee Marine.

Two iconic British yacht brands, Sunseeker and Princess Yachts, are showing in numbers this year. Sunseeker, popularly known for being James Bond’s yacht of choice, have four large powerboats on display including the stunning Predator 92, while Princess Yachts are showing four boats in the water as well as brokerage and charter offerings through local dealer Boat Lagoon Yachting.

Elsewhere in the marina are boats from Cranchi, Majesty, Gulf Craft, Azimut, Bavaria, Moody and Wider Yachts Asia. Derani Yachts have expanded to a new location at the end of Docks C and D and are showing a number of boats, the largest being a San Lorenzo 72, while Simpson Marine have a large display with six boats including a selection from the Monte Carlo shipyard, a brand which they launched into Asia with much success at PIMEX 2014.

Ideally suited to cruising the Andaman region, multihulls are growing in popularity and this is reflected with an increase in the number of multihulls on display this year. Multihull Solutions are showcasing popular designs from Fountaine Pajot and Privilege while Northrop & Johnson’s display includes the new Thai-built solar power-assisted luxury catamaran Heliotrope 65.

Onshore, the exhibitor line-up mirrors that of the in-water display both in terms of size and quality, and also in variety. Luxury auto brands Rolls-Royce Motor Cars, Aston Martin, BMW and Mini are all debuting at PIMEX, and are joined by a collection of luxury real estate, marine and lifestyle products and services.

‘The show continues to develop and I am happy to say it looks great again this year. We’ve improved the design and layout of the show for both exhibitors and visitors and our marketing has stretched all around the world. I’m looking forward to a busy and successful four days for all,’ added Dowden.

PIMEX is open Thursday 8th January to Saturday 10th January from 12:00 – 20:00, and on Sunday 11th January from 12:00 – 18:00. Entry is free.

Rouble trouble to slash Russian arrivals to Thailand by up to 65%

Posted on January 8th, 2015

Category: Absolute Hotels Absolute Resorts

RUSSIAN arrivals to Thailand could plummet by up to 65 per cent this year as a result of Russia’s political and economic crisis compounded by the collapse of the rouble at the end of last year, said a major inbound operator.

Kubilay Atac, general manager of Pegas Touristik Thailand, said arrivals halved at the end of 2014 and will likely slide further to 65 per cent.

While Atac had predicted the crisis, the devaluation during the peak season was a “big slap in the face” as it was “the one period we had to recover losses from last year”.

Pegas, which brought 506,000 Russians to Thailand in 2014, is now forecasting between 150,000 and 165,000 arrivals this year. “I don’t think Thailand will receive more than 500,000 to 600,000 Russians this year, certainly not the 1.9 million the Tourism Authority of Thailand predicted for last year.”

Bill Barnett, managing director of C9 Hotelworks, said the worse is yet to come and that Thailand was paying a price for its over-reliance on mass tourism. “The full impact won’t be felt until peak season 2015/16, as a lot of packages (arriving in November and December) were booked and prepaid in early 2014.”

He added that hoteliers would have to offer discounts of 20 to 30 per cent to fill the shortfall. “We can be sure that RevPAR will come under a concerted attack. It’s too early to say by how much it will decline, but it will be significant.”

EU sanctions over Russia’s involvement in the crises in Ukraine and Crimea have dragged on the country’s already flagging economy. The situation was exacerbated by the recent collapse of oil prices which sent the rouble spiralling and significantly cut Russian spending power.

Atac said Russia’s crisis would affect all markets in the region, including Bali, Vietnam and Thailand.

Thailand ranked as one of world’s best places to retire to in 2015

Posted on January 6th, 2015

Category: Absolute Hotels Absolute Resorts

Thailand is celebrating the New Year with good news. The country has just been listed as one of the world’s 25 best places to retire to in 2015 by International Living, a North American-based magazine for retirees.

International Living’s latest Annual Global Retirement Index released on 1 January, 2015, listed Thailand at number 10 with a total score of 84.6. The report combined several real-world insights about buying and renting, benefits and discounts, cost of living, fitting in, entertainment and amenities, health care, infrastructure and climate of each of the 25 countries.

Mr. Thawatchai Arunyik, Governor of the Tourism Authority of Thailand said, “The International Living’s Annual Global Retirement Index lists Thailand as a place with low-cost health care and lots to do. In the index report, it said ‘Thailand combines the best of authentic Asian cuisine and culture with enough North American influences to help you feel at home’, which is rightly so as the Thai people are very true to our culture, yet we are also known for our accepting nature and hospitality. Thais are ready to be a good host to all our guests at any time.”

According to the International Living’s Annual Global Retirement Index, thriving expat communities already exist in the larger cities; such as, Bangkok and Chiang Mai, and resort areas like Phuket and Hua Hin. The index report quoted Steve Le Poidevin, who relocated to Chiang Mai from Canada, as saying that “Here in Chiang Mai, it is easy to make friends if you make the effort. There are lots of opportunities to get involved with both locals and other expats…with a Chiang Mai Expat Club that meets monthly, as well as many expat clubs that get together weekly.”

While Thai food and culture are among the major draws for expat retirees, Thailand is also named as “an outdoor-lover’s paradise, with a rich mosaic of rainforests, exotic wildlife, and breath-taking temples.”

When it comes to cost, Thailand is listed as the place for “highly-affordable” homes and “a relatively low cost of living” in which the index gave an example that a couple can live comfortably in Chiang Mai on a modest budget of US$1,500 a month. Despite the low-cost, Thailand is praised for providing “excellent health care” throughout the country. Here, basic doctor’s visits and dental procedures (such as cleanings and fillings) can cost as little as US$30, while a basic health insurance plan starts at around US$300.

Thailand’s is regarded as a welcoming country for people to retire on a long-term basis, and the retirement visa does not stipulate an annual minimum stay. In addition, retirees are eligible for visas at the relatively young age of 50, and there are no additional financial requirements for their dependents.

Retirement visas are issued when applicants offer proof of income, which currently stands at around 65,000 Thai Baht (around US$2,100) a month.

Click to read the full article on: The World’s Best Places to Retire to in 2015.

10% of Phuket beaches set aside for mat and umbrella operators

Posted on December 23rd, 2014

Category: Absolute Hotels Absolute Resorts

Ten per cent of the space on beaches in Muang District is to be set aside for beach mats and umbrella operators, it was announced yesterday (December 22).

The announcement was made at a follow-up meeting chaired by Vice-Governor Somkiet Sangkhaosutthirak after Governor Nisit Jansomwong’s approval for beach operators to rent out umbrellas and mats in specific zones.

“Today we are focusing on 12 beaches around Muang District. The zoning will be planned by local authorities starting tomorrow (December 23).”

He ordered that 10 per cent of each beach will be open for mats, umbrellas, and will be strictly controlled by a municipal official who will check the area regularly.

“The zone will be used by listed operators from 9am to 4pm.”

The rental price for umbrellas and mats will be fixed for the entire island and will announced by this Friday (December 26).

V/Gov Somkiet expressed his confidence in the new zoning scheme, saying that local operators will control it.

“Registered operators will work together to keep outsiders from working on the beach [illegally]. They recognise the importance of the new scheme and the importance of controlling it.”

After the meeting, a group of masseuses complained to the Vice Governor about the changes that had been made since the previous meeting chaired by the Governor.

“We were told we were allowed to bring mattresses to the beach for massage services, but now it’s illegal again,” said Rattana Sae’lee.

“We bring mattresses to make the customers comfortable. That’s better for them than lying on a mat.”

The Vice Governor and Governor plan to discuss the issue again and come up with an answer by this Friday (December 26).

“We will try to help beach operators for a few months, and then we will re-evaluate the zoning scheme.

“We plan to cooperate with local universities and conduct research to see if everyone – local officials, beach operators, local people, tourists – is satisfied,” he said.

Thai tourism recovery continues in November 2014

Posted on December 19th, 2014

Category: Absolute Hotels Absolute Resorts

The November arrivals are a clear indicator that a recovery is underway and has brought back the confidence of international tourists to visit Thailand again. Preliminary figures of daily visitor arrivals in December at international airports are also showing a steady upturn in the last month of 2014.

The number of the international visitor arrivals has continuously risen for the second month. Visitor arrivals to Thailand in November totalled 2,438,301, a growth of 2.53 percent over November 2013. Figures released by the Ministry of Tourism and Sports show that the main contributing factor was a 58.8% surge in Chinese visitors to 513,441.

In November, the top ten source markets were China, Malaysia, Russia, Japan, Singapore, Lao PDR, Korea, India, the UK and Germany. By region, the largest source market was East Asia with a total of 1,472,427 visitors, up 10.80% and representing 60.39% of all arrivals. Visitors from South Asia also grew by 3.28%, largely due to a recovery in the Indian market, which was up 0.42% to 85,352.

Commenting on the nascent recovery, Tourism Authority of Thailand Governor Thawatchai Arunyik said, “The November arrival figures are a very encouraging sign. We are optimistic that visitor arrivals in December will be satisfying, especially in view of the major promotions we have mounted for the New Year Countdown festivities.”

He added, “This has been a very challenging year indeed for the entire travel and tourism industry. However, we have broken through this challenge and implemented many ways to handle it. The November figures are clear proof that these efforts have generated a positive result.”

According to the latest figures from January to November 2014, the total international tourists record at 21,938,435.

The sign of recovery for Thailand tourism began to show since the last three months with the country recording higher tourism income, according to the Ministry of Tourism and Sports. To-date, many accommodation establishments in key Thai destinations have received a high number of advance bookings up until the Chinese New Year 2015 period, especially from the China market. Many tourists also opt to travel directly to top beach destinations with international airports, such as Phuket and Krabi.

2015: The year of the traveller

Posted on December 18th, 2014

Category: Absolute Hotels Absolute Resorts

2014 has been nothing short of exhilarating. By Angel Gallego, President of Amadeus Asia Pacific

In fact, this is a thrilling time to be a part of the travel industry in Asia Pacific, with two emerging themes propelling the region to global prominence: the ascendance of the Asian traveller and the explosion of mobile.

Asia Pacific is home to more than 60% of the world’s population but has long been underrepresented in terms of its travelling population. With the emergence of a travelling middle class, reduction in red tape across the region, and the rise of low cost carriers, APAC has risen to taken its rightful share of the global travel market.

In fact, leisure tourism revenue in Northeast Asia alone is set to climb by 10% in 2015 to $900 billion, surpassing leisure tourism in the EU and North America.

When we add mobile to the mix the story really becomes interesting.

In 2014 we saw a 25% year on year global growth in smart phone usage and a massive 65% growth in mobile travel purchases. Parts of APAC have essentially leapfrogged the online era and are leading the mobile charge, with China and India set to become the number one and two smart phone markets respectively, knocking the USA into third place.

The “who’s who” of APAC online travel were polled at the Amadeus Online Connect event in Phuket last month, and almost half said that mobile will be a game changer.

With a mobile in nearly every hand, being unlocked up to 110 times a day, we have a better opportunity than ever to truly understand and capture data throughout the traveller lifecycle. Hotels, airlines and travel companies have been compelled to introduce applications that put the traveller at the centre, including mobile booking apps, check in, boarding passes, reviews and hotel room keys.

As the chatter turns to wearable devices, which have been forecasted to skyrocket from nine million devices in 2013 to 180 million in 2016, the opportunity becomes even more fascinating.

Regardless of what the next big thing is, the message is clear – technology has empowered the traveller. Travel providers have to start placing the traveller at the heart of everything, finding ways to meld themselves into the lifestyle of the traveller, or risk being left behind.

I truly believe that this is only the beginning. Next year, we will start to see how companies will re-shape their businesses according to the traveller’s needs. 2015 will be the year of the traveller.

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http://asiapacific.unfpa.org/public/pid/13193

Amadeus’ Shaping the Future of Travel: Macro trends driving industry growth over the next decade

http://techland.time.com/2013/10/08/study-says-we-unlock-our-phones-a-lot-each-day/

European countries paint the sky for Pattaya International Fireworks Festival

Posted on December 15th, 2014

Category: Absolute Hotels Absolute Resorts

The night sky above Pattaya Bay became a canvas that four European countries painted with exploding rockets and lasers for more than 200,000 people at the Pattaya International Fireworks Festival.

Teams from Germany, Italy, Spain and the United Kingdom dazzled crowds with explosions and pinwheels Nov. 28-29, capping day-long street festivals featuring food, music and entertainment.

Fireworks from Team England are the perfect addition to a Pattaya Bay panorama.Fireworks from Team England are the perfect addition to a Pattaya Bay panorama.

Fireworks began around 9 p.m. each day with the show split into three parts and contestants of Thailand’s Got Talent providing the intermission entertainment. Two teams put on individual shows of 20-25 minutes each night with the other teams putting on short demonstrations at 10 p.m.

England’s performance focused on the art of experience, enhanced with imagination of color screening and shapes expressing the biological relationship between the eyes and mind of the spectators and artists. The highlight was the final explosion meant to depict an explosion of life.

Germany illustrated the power of flowers in a concept called “Art of Life,” highlighting the explosions and stimulation of excitement leading to ultimate powers of creativity emphasizing natural brightness.

The fireworks not only lit up the night sky, they also lit up Pattaya Bay.The fireworks not only lit up the night sky, they also lit up Pattaya Bay.

The Italian team wrung out emotions, including excitement, serenity filled with sadness, and happiness, all converging into a sky of bright and hot colors.

Finally, the Spanish lit the sky with unlimited creativity and an expression of love of life, focusing on tones of color.

While the pyrotechnics took center stage, Friday’s festivities actually began at 3:30 p.m. and ran through 11 p.m. while Saturday ran from 5 p.m. until 1 a.m. Beach Road was closed to traffic both days from 3:30-11 p.m. and all side streets from Second Road were blocked to allow sponsor Thai Life Insurance to throw its “Art of Life” street festival.

Germany’s fireworks burst into 3 flowers.Germany’s fireworks burst into 3 flowers.

The day featured a flash-mob dance, game booths and concerts by ETC and Stamp Aphiwat on Friday, and Zeal and J Jetrin on Saturday. Activities along Beach Road also included a “music art carnival,” street art plus food and drinks.

The entire day was free, but VIP seats with food, drinks and raffle draws were available with proceeds benefiting Thai Life Insurance’s “One Give, Many Receive” charitable campaign.

Pattaya Mayor Itthiphol Kunplome believes more than 200,000 people saw the fireworks over the two days, generating at least 300 million baht for the city.

Thailand Elite partners with Phuket International Boat Show to attract high net worth individuals to Thailand

Posted on December 12th, 2014

Category: Absolute Hotels Absolute Resorts

Organisers of the Phuket International Boat Show (PIMEX), held 8th to 11th January 2015 at Royal Phuket Marina, confirm a strategic partnership with Thailand Elite, the world’s first country membership programme, to showcase Phuket and Thailand’s yachting lifestyle to Thailand Elite members and provide a marketing and networking platform showcasing Thailand Elite to the growing number of Ultra High Net Worth Individuals (UHNWIs) and High Net Worth Individuals (HNWIs) that have holiday homes in Phuket and will be visiting the Show.

“PIMEX is Asia’s premier boat show and attracts a large number of High Net Worth Individuals interested in boating and a luxury lifestyle. Working together with PIMEX we will showcase the event to our members and also showcase the Thailand Elite programme to the thousands of people from overseas who will visit PIMEX,” said Mr. Apisit Chuenchompoo, President, Thailand Privilege Card Co., Ltd.

Famed for its stunning in-water display of luxury boats – the biggest of any show in Asia – PIMEX 2015 will showcase 50 boats, of which 15 are over 20 metres, to a clientele of boating enthusiasts and aficionados of luxurious living from the regional wealth centres of Hong Kong and Singapore, as well as thousands of visitors from Europe.

“The quality of boats in-the-water and exhibitors in the Hall is, I believe, the best ever. There are 50 boats displayed as well as more than 120 brands represented with luxury motor brands Rolls-Royce, Aston Martin, BMW and Mini all exhibiting for the first time. They will be joined by the latest marine products and technology and luxury lifestyle offerings – a total of 80 exhibitors in all,” said Andy Dowden, PIMEX Show Director.

The traditional core of visitors from Hong Kong and Singapore has expanded over recent years on the back of strong visitor-marketing campaigns targeting Russia, China and Thai buyers.

“We have seen considerable growth in visitors from Europe in recent years, especially from Russia, and this has been mirrored by growth in the number of Thai visitors also. Our exhibitors range from luxury boats and cars to all manner of marine toys, gadgets and products, through to luxury real estate and more, and it is this mix of luxury and lifestyle exhibitors that attracts an increasingly cosmopolitan visitor demographic,” added Dowden.

While having a strong focus on leisure, be it through luxury boating, motoring, real estate and more, PIMEX is also attracting an ever-growing number of regional and international business travellers, in large part due to its ongoing partnership and support from the Thailand Convention & Exhibition Bureau (TCEB).

“PIMEX provides a unique platform for B2B and B2C business, attracting a lot of potential buyers from within Thailand and overseas each year. Home to the leading boat show in the region, PIMEX, Phuket is also the hub for marine leisure tourism and the wider marine industry, and TCEB are proud to support both PIMEX and Phuket Island”, commented Ms. Jaruwan Suwannasat, Director of Exhibitions & Events, Thailand Convention & Exhibition Bureau.

A four-day festival of everything marine and lifestyle, PIMEX shines the light on Thailand’s marine leisure tourism industry and the Island’s leading position as the marine hub of Asia, attracting a desirable demographic of High Net Worth Individuals and thousands from around the world to view the 3 Billion Baht offerings, ranging from uberluxe superyachts and multi-million dollar villas to day boats and dinghies, condominiums, marine accessories and products, and much more.

PIMEX is open Thursday 8th January to Saturday 10th January from 12:00 – 20:00, and on Sunday 11th January from 11:00 – 18:00. Entry is free.

Samui Tourism Receives Massive Boost

Posted on December 11th, 2014

Category: Absolute Hotels Absolute Resorts

The recent upgrading of daily flight capacity from 36 to 50 flights a day is set to stimulate Koh Samui’s tourism market.

Based on media reports, the environmental restriction was lifted November 24th and will allow greater access by both regular scheduled service and charter flights.

Flights will continue to be allowed to take-off and land between 6 am and 10 pm, but the increase of 36% in daily traffic is expected to spur increases.

Bangkok Airways who launched an IPO this year are adding three more Airbus A320 aircraft in 2015.

A key stimulator of long haul and regional growth has been the Kuala Lumpur flights to the island which connect onto Europe, the Middle East and Australia. With greater capacity, more flights could multiply tourism growth.

There still remains the China question with AirAsia currently supplying much of the Chinese traffic via Surat Thani.

Overall the new airlift capacity into Koh Samui is a strong fundamental positive for one of Thailand’s leading resort destinations.