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Market Insights: Koh Samui Hotel Market 2H 2019

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Koh Samui Hotel Market

"Since the number of foreign tourists visiting Thailand in 2019 has decreased, affecting the tourism business in Koh Samui, both in terms of room rates and occupancy. The operators have reduced room rates in order to be able to compete with competitors. The overall average occupancy rate has also decreased, reflecting the slowdown in the tourism market in Koh Samui in the past year. In addition, with the supply of more than 23,000 rooms and more than 1,500 rooms under construction, Koh Samui is in demand of more tourists in the future."

Top 5 tourists staying in hotels in Koh Samui

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 tourists from China, 245,987 tourists from Eastern Europe, 197,772 tourists 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 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 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 THB30 per US dollar, it is affecting tourism, especially foreigners who travel to Koh Samui. According to the forecast throughout the year 2019, there are 2.3 million tourists. It has been forecasted  that the whole year will decrease by around 200,000 people, including the spending power will decrease by about 20% which makes the signs of the economy deteriorate.

Trend

  • Tourism income as of Q3 2019 was worth THB30,000 million, slightly decreased from the same period of the previous year. In which, foreign tourists accounted for more than 85%, a decrease of approximately 5% y-o-y.

  • Most Chinese tourists still spend their time at hotels in Koh Samui, with an average of 5 nights staying. On the other hand, foreign tourists, in general, spend an average of 5.40 times per day in Koh Samui, while Thai tourists spend around 3.2 days per visit.

  • Bangkok Airways invested more than THB692 million to improve and increase the competitiveness of passenger support which is currently in the process of environmental approval.

  • Overall, the hotel market in Koh Samui in 2019 was slow due to the number of tourists, especially foreign tourists. Combined with the condition of the supply of more than 23,000 rooms, which, if unable to attract more tourists to come in to travel, there may be a risk of oversupply in the hotel market in Koh Samui in the future.

  • Real estate in the area, especially villas with guaranteed return have become another option for tourists with a relatively high competition for the local hotel market in 2019.

  • The private sector in Koh Samui urges the government to build a bridge between Koh Samui and the large land plan to open the way to Koh Samui and increase the number of neighboring islands. The bridge will result the ease to travel  to Koh Samui, Koh Phangan and Koh Tao.

Related Experts

Phattarachai Taweewong

Director

Bangkok

Phattarachai is responsible for collect all property sectors in Bangkok and throughout Thailand.

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