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Game changers on Khao Lak’s horizon

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PHUKET, 5 June 2018: More International hotel brands are poised to introduce their brands to Khao Lak, a northern mainland neighbour of Phuket Island.

Details of the expansion and the role that Khao Lak is likely to play in South Thailand’s economy are featured in the latest C9 Hotelworks Khao Lak Hotel Market Update released Monday.

The report identifies Phuket’s northern neighbour Phang Nga province and Khao Lak, a key tourism area and the next major area for development.

“One clear sign of the times is the new international hotel offerings in the current pipeline including such brands as Sheraton, Holiday Inn and Avani,” said report author, Bill Barnett, who heads C9 Hotelworks.

He points to the proposed third airport that should open in 2025 on a site in Phang Nga, less than 100 km from Khao Lak’s main bay area.

It will join Phuket and Krabi airports creating a triangle of international airports covering a coastal area of resorts spanning a distance of 250 km end-to-end.

Looking at Khao Lak, which stands to gain the most from having a new “Greater Phuket international airport within a one hour taxi transfer, the report delivers key market highlights; game changers on the Khao Lak horizon.

As of February 2018, market-wide occupancy registered 77% as average rates hit THB 4,100. Khao Lak hotels tend to focus on occupancy to grow RevPAR versus rate yields.

Western European visitors typically are the main market feeder for Khao Lak, accounting for 65% of total international guests.

Demand increases in the MICE segment, which comprises weddings from Europe, India, and Australia, together with incentives from Singapore and Hong Kong.

Phang Nga’s development plans through 2021 include a four-lane motorway from Ranong, light rail from Thanoon to Phuket, and cruise ship port expansion at Thap Lamu.

The approved investment budget for key provincial infrastructure projects is targeted at THB24 billion.

There are five projects and one hotel extension in the pipeline, totalling 1,347 keys. International chain hotels are rising with three branded properties in the planning stage.

“The biggest game changer is the plan for a THB60 billion airport in Khok Kloi Phang Nga. If it materialises, the travel time to Khao Lak will be reduced to approximately one hour and will in effect create a far broader mainstream tourism market,” Barnett concluded.

Download report:

https://www.c9hotelworks.com/downloads/khao-lak-market-report-2018-06.pdf

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