year end 2010 | hotelthailandPattaya Hotel MarketrePort                                            Pattaya Hotel Market   ...
Pattaya hotel market rePort | year eND 2010hotel claSSificationWhile the thailand Hotels association (tHa) categorizes hot...
Pattaya hotel market rePort | year eND 2010hotel locationS                                  COLLIERS INTERNATIONAL | P. 3
Pattaya hotel market rePort | year eND 2010this study focuses on the major areas of hotel accommodation in Pattaya, which ...
Pattaya hotel market rePort | year eND 2010                                                             hiStorical Supply ...
Pattaya hotel market rePort | year eND 2010future Supply                            cumulative future Supply in pattaya du...
Pattaya hotel market rePort | year eND 2010                       indicated cumulative future Supply in pattaya during the...
Pattaya hotel market rePort | year eND 2010                                           international touriSt arrivalS accom...
Pattaya hotel market rePort | year eND 2010                           gueSt arrivalS at accommodation eStabliShmentS by na...
Pattaya hotel market rePort | year eND 2010         gueSt arrivalS at accommodation eStabliShmentS by nationality in patta...
Pattaya hotel market rePort | year eND 2010        gueSt arrivalS at accommodation eStabliShmentS by nationality in pattay...
Pattaya hotel market rePort | year eND 2010occupancy and room rateS                                                       ...
Pattaya hotel market rePort | year eND 2010outlook                                                                       t...
Pattaya hotel market rePort | year eND 2010collierS international thailandmanagement team                                 ...
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Pattaya Hotel Market Report H2 2010

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Issues relating to Bangkok are a thing of the past as tourists flock once again to Pattaya.

Limited new supply over the past few years has allowed for some breathing space for the hotel industry during the difficulties in Thailand since 2006. Around 1,950 rooms were added to supply in all categories for 2010 raising the total number of rooms to 45,600.
The greater range of Mid Scale hotels has allowed the industry to compete on price to a greater extent than Bangkok. However more Upper and Luxury scale hotels are expected to enter the market as the city continues to redefine itself as an international resort with top class facilities.
Russians and Chinese are the dominant foreign tourism markets for Pattaya while new growth markets from India, Iran and Vietnam are beginning to emerge.

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Pattaya Hotel Market Report H2 2010

  1. 1. year end 2010 | hotelthailandPattaya Hotel MarketrePort Pattaya Hotel Market executive Summary Issues relating to Bangkok are a thing of the past as tourists flock once again to Pattaya. limited new supply over the past few years has allowed for some breathing space for the hotel industry during the difficulties in thailand since 2006. around 1,950 rooms were added to supply in all categories for 2010 raising the total number of rooms to 45,600. the greater range of Mid Scale hotels has allowed the industry to compete on price to a greater market indicatorS extent than Bangkok. However more Upper and luxury scale hotels are expected to enter the market as the city continues to redefine itself as an international resort with top class facilities. 2009 - 2010 russians and Chinese are the dominant foreign tourism markets for Pattaya while new growth Supply markets from India, Iran and Vietnam are beginning to emerge. occupancy rateSwww.colliers.co.th
  2. 2. Pattaya hotel market rePort | year eND 2010hotel claSSificationWhile the thailand Hotels association (tHa) categorizes hotels with a Upper Scale - a degree of luxury as well as quality in the furnishings,star rating, many hotels do not abide by star rating. therefore in this decor and equipment, in every area of the hotel. Bedrooms will alsostudy, Colliers International thailand have produced a classification usually offer more space and be well designed with co-ordinatedbased on the quality of the hotel as seen through the eyes of the hotel furnishings and decor. the en-suite bathrooms will have both bath andmanagement companies and on the British Hospitality association fixed shower. It will contain a high enough staff to provide services likeclassification. concierge and porter service, 24-hour room service, laundry and dry- cleaning. the restaurants will provide high quality cuisine.Basic overview of hotel classification luxury - spacious and luxurious accommodation throughout the hotel,Guesthouse – simple accommodation offering limited or no facilities matching the highest international standards. Interior design shouldwith basic furnishings with sizes ranging from 12 to 18 sq m. impress with its quality and attention to detail, comfort and sophistication. Furnishings should be immaculate. Services should be formal, wellBudget – slightly upgraded rooms and facilities from guesthouses supervised and flawless in attention to guests’ needs, without beingalthough differences can be slight. intrusive. the restaurant will demonstrate a high level of technical aptitude, creating dishes to the highest international standards. Staff willeconomy - comfortable, well equipped accommodation, with an en-suite be knowledgeable, helpful, and experienced in all aspects of customerBath / shower room. reception and other staff aim for professional care, combining efficiency with courtesy.presentation that offers a wide range of straightforward services,including food and drink.mid Scale - hotels are usually of a size to support higher staffing levels,and a significantly greater quality and range of facilities. reception andthe other public rooms will be more spacious with a number ofrestaurants. all bedrooms will have fully en suite bathrooms and offer agood standard of comfort and equipment, such as a hair dryer, telephoneand toiletries.COLLIERS INTERNATIONAL | P. 2
  3. 3. Pattaya hotel market rePort | year eND 2010hotel locationS COLLIERS INTERNATIONAL | P. 3
  4. 4. Pattaya hotel market rePort | year eND 2010this study focuses on the major areas of hotel accommodation in Pattaya, which can be subdivided into seven main areas:1. Wong amat is the area to the north of Pattaya Nua. It is considered 5. pratumnak is the area covering the main thoroughfare connectinga peaceful, more up-market location and is a relatively new area for Pattaya and Jomtien Beach and the hill overlooking Pattaya bay andmajor resort development. this area is considered a peaceful location. Cosy Beach. 6. Jomtien is about 1 km south of Pratumnak Hill. the area is home to2. north pattaya is the area to the south of Pattaya Nua. It is divided many high-rise condominiums, beachfront hotels, shops and restaurants.into a larger northern section that spans the areas to the east of Naklua the area at the beginning of Jomtien is considered busy, while the areaBeach (the most northern beach). at the end of this beach, bordering Na Jomtien in Sattahip district, is quieter.3. central pattaya is considered the city centre, covering the section 7. na Jomtien is south of Jomtien and does not have a beachfrontof beach from Central road (Pattaya klang) to the entrance to Walking road and is less developed as a result. the main road connection isStreet at South Pattaya tai road. Sukhumvit road, which is located between 500–1,000 metres from the beach.4. South pattaya is the area from the border of Central Pattaya to theBali Hai pier and arthachinda road and is adjacent to the core of Pattaya’s Note: the report covers areas located on or west of Sukhumvit road.busy nightlife area. this area is popular among Middle eastern, Southasian and russian visitors.hiStorical Supply hiStorical Supply by year Source : Colliers International thailand researchthere are approximately 45,600 hotel rooms in all areas of Pattaya in all lk group opened three new hotels at the end of the year. Central Pattanagrades at the end of H2 2010. the fallout from the asian Financial Crisis opened the Hilton Hotel above the popular Central Festival Pattaya Beachmeant only a very modest increase in supply occurred in the first five with 340 hotel rooms at the end of 2010.years of the 2000’s but growth in tourism numbers meant that developerswere back on the bandwagon with a surge in supply taking place in 2006and 2007. However the ongoing political problems in the country and theglobal economic downtown affected tourism adversely and only a limitedsupply has come onto the market since then.COLLIERS INTERNATIONAL | P. 4
  5. 5. Pattaya hotel market rePort | year eND 2010 hiStorical Supply by year Supply by location, h2 2010 cumulative Supply in bangkok Source : Colliers International thailand researchPattaya bay accounts for over 56% of all hotel rooms in Pattaya city and bay. this area is by far the main centre of tourism in the city with itsthese are fairly evenly distributed between the three areas of Pattaya wide range of shopping and entertainment facilities. hiStorical Supply by year Supply by location and grade, h2 2010 cumulative Supply in bangkok Source : Colliers International thailand researchPratumnak takes up the lion’s share of luxury hotel rooms primarily due North Pattaya bay, Wongamat and Pratumnak focus more on higher endto the location of the royal Cliff resort with over 1,000 rooms. In very although the distinctions between each area are not clear cut.general terms the Central and South Pattaya bay areas as well asJomtien contain a greater proportion of lower end accommodation while COLLIERS INTERNATIONAL | P. 5
  6. 6. Pattaya hotel market rePort | year eND 2010future Supply cumulative future Supply in pattaya during the year 2011 – 2015 by year & grade Source : Colliers International thailand researchapproximately 1,000 rooms of Upper Scale hotels and more than 500 Scale and lower grade hotels. Clearly developers are tuning in to Pattaya’srooms for luxury grade are scheduled to be completed in 2015, growing reputation as an international resort with higher end facilities,meanwhile just 200 rooms are expected for Mid Scale hotels. including hotels.Hotel developers are focusing more on the luxury and Upper Scale endof the market although Pattaya still contains a high proportion of MidCOLLIERS INTERNATIONAL | P. 6
  7. 7. Pattaya hotel market rePort | year eND 2010 indicated cumulative future Supply in pattaya during the year 2011 – 2015 by year & location Source : Colliers International thailand researchProjects that will take place in the next five years are scattered throughout such as the International Music Fair and the Pattaya marathon havemany locations with between 300 – 500 rooms in each location apart helped to diversify the city and are creating the conditions for furtherfrom North Pattaya bay. all areas are playing their part in the future of growth in the tourism sector. the MICe industry represents a potentialtourism in the city. draw card for companies wishing to provide a coastal environment with international facilities.local company Petch Property, plans to develop a luxury hotel in thearea near the Cove condominium within the next seven years. Major the introduction of Central Festival Pattaya Beach shopping mall inDevelopment also plans to develop a luxury hotel behind reflection 2009 has started to encourage tourism, especially the domestic variety,Jomtien Beach Pattaya condominium and MBk Property Development as it represents the city’s first modern last scale shopping complex andplans the development of an Upper Scale hotel in the Pattaya Bay area the largest coastal shopping mall in asia. this development is likely toin the next five years. Further international brands are also interested in pressure other retail locations to upgrade their own malls to compete fordeveloping hotels in Pattaya, such as Movenpick in Na Jomtien area and custom and this will further enhance Pattaya as a family destination.local developers. the thai based erawan Group PlC will team up withoperator amari Hotels & resorts to develop a new hotel in the Pattayabay area. Pattaya Floating Market company are looking to expand theirexisting tourist attraction into the hospitality business as they plan todevelop a hotel in the area of their own floating market which is locatedoutside the area covered in the report.demand trendSthe eastern Seaboard remains the main magnet for industrialdevelopment due its proximity to the main port and Bangkok, as well asdeveloped infrastructure and an existing clustering of key industriessuch as electronics and the automotive industry. the further integrationof aSeaN and economic behemoths of China and India pose greatopportunities for the region. as Pattaya is by far the preeminent locationfor commerce and entertainment within the eastern Seaboard the citywill in the future attract greater number of business people to stay thusbroadening its base from tourism. More companies are likely to set upoffice in Pattaya, furthering the growth potential of the city.the development of a more family orientated image coupled with events COLLIERS INTERNATIONAL | P. 7
  8. 8. Pattaya hotel market rePort | year eND 2010 international touriSt arrivalS accommodated at pattaya Source : Department of tourism and Colliers International thailand remark : e = estimated by Colliers International thailand researchofficial figures from the tourism authority of thailand (tat) reveal that in thailand as whole and Pattaya was not spared. For the second half ofthe number of international tourist arrivals to Pattaya declined by as 2010 the number of visitors coming to Pattaya increased by around 12much as 30% in 2008, down from around 5.8 million in 2007 to 3.42 – 15% from the first half according to the Department of tourism. Pattayamillion in 2008. tourism reached its nadir in H1 2009 with the protests has fought back hard to win back tourists to the city and is beginning toof april 2009 which resulted in the postponement of an aSeaN summit succeed.in Pattaya which directly affected the tourism market there.the april and May protests in 2010 were mostly centred in part ofBangkok but overall coverage of the events affected the tourism marketCOLLIERS INTERNATIONAL | P. 8
  9. 9. Pattaya hotel market rePort | year eND 2010 gueSt arrivalS at accommodation eStabliShmentS by nationality in pattaya h2 2010 Source : Department of tourism and Colliers International thailand researchtourists from russia still represent the main foreign tourist market in and Middle eastern visitors represent significant growth markets andPattaya and nearly topped 400,000 visitors for H2 2010 . one are less affected by political disruptions. on top of that these visitorsmanifestation of this is the growing number of signs showing р(restaurant) prefer coming to thailand in the off season summer period due to theoffering menus in russian as well as advertising all over the city in the scorching hot climate in their own countries at that time of year. this willcyrillic script. Many are now turning into condominium buyers as help boost the hotel market during periods of lower occupancy.discussed in the Pattaya Condominium Market report H2 2010. Indian COLLIERS INTERNATIONAL | P. 9
  10. 10. Pattaya hotel market rePort | year eND 2010 gueSt arrivalS at accommodation eStabliShmentS by nationality in pattaya 2007-2010 h2 in main touriSm marketSthese countries represent the main foreign markets by country and the has fallen dramatically from 2007 to 2009 reflecting safety concernschart shows how the russian and Chinese visitors have come to relating to the whole country.dominate the tourism scene in Pattaya city. However the korean marketCOLLIERS INTERNATIONAL | P. 10
  11. 11. Pattaya hotel market rePort | year eND 2010 gueSt arrivalS at accommodation eStabliShmentS by nationality in pattaya 2007-2010 h2 in mid tier touriSm marketSMany european markets have fallen significantly over the years, especially although unfortunately the tourism authorities do not record specificin the Uk. this decline is a combination of weaker exchange rates and data for this country, although it is believed around 150,000 Iranianslingering economic headwinds. the growing income levels of many visited thailand as a whole in 2010. the structure of tourism in PattayaVietnamese and future growth could mean this becoming a strong market is a very different one from the past.for Pattaya in the future. Iranians are also a significant growth market average length of Stay Source : tourism authority of thailand (tat), office of tourism Development and Colliers International thailand researchthe average length of stay has gravitated around the three night mark Bangkok or the industrial areas in Chonburi and will often visit Pattayathroughout the past ten years except for a brief surge in 2008. a for weekends only therefore average stays are likely to remain on the lowsignificant proportion of domestic visitors coming to Pattaya reside in side. COLLIERS INTERNATIONAL | P. 11
  12. 12. Pattaya hotel market rePort | year eND 2010occupancy and room rateS occupancy rateS Source : tourism authority of thailand (tat), office of tourism Development and Colliers International thailand researchSince 2007, average occupancy rates for Pattaya hotels had fallen by in Bangkok affecting the country as a whole during april and May andover half by 2009. this trend was due to various factors, such as this points to Pattaya’s robustness and bright future as a tourismthailand’s political instability, H1N1 and the global economic slowdown. hotspot.Weaker currencies in many of Pattaya’s key markets have also playedtheir part. However in 2010 tourism bounced back despite the troublesroom rateSthe average Daily rate (aDr) of hotels in Pattaya reveals a big gap. thelowest aDr is less than 1,000 baht per night and the highest is over4,500 baht per night. the majority of hotels in Pattaya, approximately18,300 rooms, have an average aDr less than 1,000 baht per night. theaDr of 4-star hotels is in the range of 2,500-3,500 baht per night, whilethat of 5-star hotels is higher than 3,500 baht per night. lower endhotels in the range of 500-1,000 baht per night offer very good valuecompared to similar price range hotels in Bangkok. these no nonsenseestablishments appeal to a large number of visitors who come toPattaya.tourists and business travelers, especially from the asia-Pacific region,are more price conscious than ever before and are spending moreprudently. Corporate expenditure, such as on travel and entertainment,is now being scrutinized more closely. During this current situation,many hotel operators are applying price-cutting strategies. Whenoperators start to cut prices, it is often difficult to increase the rates backto their prior levels because customers’ expectations change. thesuccessful hotels are those that offer attractive promotions to potentialcustomers.COLLIERS INTERNATIONAL | P. 10
  13. 13. Pattaya hotel market rePort | year eND 2010outlook the continued development of family entertainment centres and upscale shopping malls will help to underpin the tourism industry and give Bangkokians more excuses to visit and stay in Pattaya. the successes ofthe economic mainstay of Pattaya is tourism and over the past ten years, ripley’s World of entertainment, Mini Siam and Mini europe, Nong Nuchthe number of tourists has jumped sharply from 3 to 6 million. Pattaya is as well as the innovative Flight of the Gibbon point to further growth indistancing itself from the sometimes unsettled situation in Bangkok and family orientated facilities around Pattaya.its strength is as a resort city that is able to attract a higher number oftourists than Phuket and Samui combined. russia and China now dominate the tourism market with most european countries failing to catch up. the Vietnamese represent a fast growingthe proximity to Bangkok remains an important demand driver for hotel segment and with a large population and rapidly growing middle classaccommodation as many Bangkokians visit Pattaya as a weekend with discretionary income they could represent a significant player in thegetaway. the recent completion of highway 7 has reduced travelling coming years. It must be remembered that tourists may eventually leadtimes from the cities to within 90 minutes. the proximity to the airport to residential buyers in the future so developers should always bealso weighs in Pattaya’s favour with international visitors having the attuned to the latest trends in tourism.option of avoiding Bangkok and this will continue to propel demand. COLLIERS INTERNATIONAL | P. 11
  14. 14. Pattaya hotel market rePort | year eND 2010collierS international thailandmanagement team 480 offices in 61 countries on 6 continentsPattaya oFFICe United States: 135 • the third largest commercialMark Bowling | Senior Sales Manager real estate services company in Canada: 39Supannee Starojitski | Senior Business Development the world latin america: 17Manager / office Manager • the second most recognised asia Pacific: 194 commercial real estate brandProJeCt SaleS & MarketING eMea: 95 globallyMonchai orawongpaisan | Senior Manager • US$2 billion in annual revenue • over 2 billion square feet underreSIDeNtIal SaleS & leaSING managementSupatra Buranatham | Consultant • over 15,000 professionalsoFFICe & INDUStrIal SerVICeSNarumon rodsiravoraphat | Senior ManagerretaIl SerVICeSasharawan Wachananont | Senior Manager CollIerS InternatIonal thaIland: Bangkok officeaDVISory SerVICeS 17/F Ploenchit Center,Napatr tienchutima | associate Director 2 Sukhumvit road, klongtoey, Bangkok 10110 thailandreal eState MaNaGeMeNt SerVICeS tel +662 656 7000Bandid Chayintu | associate Director fax +662 656 7111 email info.th@colliers.comaDVISory SerVICeS | HoSPItalIty Pattaya officeJean Marc Garret | Director 519/4-5, Pattaya Second road (opposite Central Festival Pattaya Beach), Nongprue, Banglamung, Chonburi 20150INVeStMeNt SerVICeS tel +6638 427 771Nukarn Suwatikul | associate Director fax +6638 427 772Wasan rattanakijjanukul | Senior Manager email info.pattaya@colliers.comreSearCHantony Picon | associate DirectorSurachet kongcheep | Senior ManagerValUatIoN & aDVISory SerVICeSNicholas Brown | associate DirectorPhachsanun Phormthananunta | associate Director reSearcher: reSearcher: thailand thailand antony Picon Surachet kongcheep associate Director | research Senior Manager | research email antony.picon@colliers.com email surachet.kongcheep@colliers.com this report and other research materials may be found on our website at www.colliers.co.th. Questions related to information herein should be directed to the research Department at the number indicated above. this document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. Colliers International is a worldwide affiliation of independently owned and operated companies. accelerating success.www.colliers.co.th

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