So What's New?
A monthly round-up of the latest Samui information.
Wednesday, April 2, 2008
Tax reductions and law changes to come
The new government has clearly indicated that it intends to promote and encourage foreign investment and has singled out real-estate for specific changes.
Firstly the Bank of Thailand removed 30% capital controls on foreign inflows. Then taxes relating to property transfers, namely the transfer tax and business tax, were both reduced to 0.01% from 2% and 3.3% respectively. And the latest announcement is regarding potential positive changes to the Foreign Business Act which would make property purchases easier and clarify issues re work permits, visas and company set-ups. So, overall, the signs for the future of real-estate are looking far better now than they have for a long time.
Middle East routes in demand
Qatar Airways, is one of three major operators from the Middle East that is assertively building a strong presence within the Thai market. Its Bangkok to Doha flights had a load factor of 84% last year which has seen an increase already this year.
Qatar joins Etihad and Emirates, from the UAE, in wishing to increase its flights to Bangkok. However, this is limited due to aircraft capacity constraints.
A third daily flight is expected to be added in the next year. Qatar is the only airline that offers a non-stop service between Bangkok and Doha and it benefits from a code-sharing agreement with Thai International Airways. It is also currently negotiating with Bangkok Airways to allow direct check-ins from Doha through to the domestic airports such as Samui.
Etihad Airways has also seen a significant rise in passengers from Thailand. However, the profile of travellers has changed with Thais now far outnumbering expatriates on its flights to Abu Dhabi.
On average, Etihad fills 77% of seats on the two daily flights operated. But January and February this year saw those figures rise to 80% and 90% respectively.
The airline has the capacity to carry out 23,000 passengers a month between Bangkok and Abu Dhabi and is keen to increase capacity to tap growing demand on the route.
The open-skies agreement reached by Thailand and the UAE will enable Etihad to increase the frequency of its flights to Bangkok soon.
TCC expanding hotel business
Billionaire Khun Charoen Sirivadhanabhakdi, owner of TCC Land, plans to spend Bt9 billion in 2008 on expanding the company’s hotel development business.
The company’s executive director said Bt7 billion would be invested to develop three new luxury hotels and four low-budget hotels under its own Imm brand. Two of the three new five-star luxury hotels will be here on Samui along with one of the four Imm low-budget hotels which generally have around 120 rooms offered for between Bt700-800 per night.
TCC Land has developed a number of luxury hotels including the Banyan Tree Samui and the Luxury Collection, also on Samui.
Apart from the hotel business, Bt2 billion will be used to acquire new buildings.
Show me the money
This year will see property developers investing nearly Bt10 billion in new hotels and resorts on Samui. In fact, the number of hotel and resort rooms is expected to increase by over 1,100 to 15,500 by the end of the year.
Khun Sanee Puwasetthaworn, president of the Tourist Association of Koh Samui,stated that the introduction and expansion of international hotel chains had played a significant role in the growth in room numbers from 10,000 in 2005 to the current number. Nearly Bt30 billion has been invested by hotel groups such as Accor, Hyatt, Avasorn and Four Seasons.
Such investment has been encouraged by the rapidly rising number of tourists visiting the island which is expected to reach 1.5 million this year.
Khun Sanee believes that the luxury resorts planned for Samui over the next five years will make the island the most expensive destination in the Kingdom. International hotel groups, such as The Mandarin Oriental, are considering joining Banyan Tree, Intercontinental, Conrad, Sheraton and W Hotels who are all at various stages of development on the island. Local hotel groups are also expanding rapidly with Amari, for example, opening the X2 Resort this year and launching the Sirimaya Resort shortly after.
A further 10,000 rooms are expected to be added over the next five years. The expanded airport and the addition of Thai Airways flights will help increase the number of visitors to the island and the style and quality of the resorts appearing has resulted in the Tourism Association of Koh Samui predicting that average room rates are likely to surpass those of Phuket; making Samui the most expensive Thai resort destination.
Khun Sanee states that in many areas land prices have increased by 100% in recent years and, in addition to the new hotels and resorts, residential development was especially strong between 2005 and 2006.
Following the recent election the real-estate market has experienced a significant increase in sales and interest. And even more large-scale investment is likely to follow as the legal situation in relation to foreign ownership is clarified and Samui’s reputation continues to spread around the world.
More airlines coming soon
Silk Air, the regional wing of Singapore Airlines, is planning to introduce daily flights between Singapore and Samui. The proposal has been welcomed by Bangkok Airways but the airline must seek permission from the Department of Civil Aviation and related authorities who are responsible for restricting the number of flights to and from Samui Airport.
Bangkok Airways currently operates a daily flight to Singapore and last year it carried 27,550 passengers on the route. About 45% of them originated from Singapore and 55% were connecting passengers; mainly from Australia.
Focus on luxury
The Tourism Authority of Thailand (TAT) is to highlight luxury hotels to attract quality big spending visitors this year.
Khun Sasi-apha Sukontarat, executive director of the Product Promotion Department, said foreign high-end travellers were increasingly looking for trendy hotels that offer stylish accommodation combined with international-standard services.
At present, luxury hotels make up about 47% of Thailand’s 300,000 hotel rooms and that number is growing significantly, especially here on Samui. Khun Sasi-apha said, “The planned investment in those five-star hotels well reflects that Thailand still has lots of development potential to serve quality tourists.”
The TAT has published a guidebook called Luxury and Trendy Hotels, which includes hotels that have opened in the last three years, with unique designs and architecture, offering services to the middle and high-end markets.
New site to help villa marketing
Luxury Retreats, a world leader in high-end villa rentals, has released a new website to showcase all of Thailand’s premier rental homes in one easy to navigate place.
The site, www.holidayvillasthailand.com, aims to spread the word that rental villas offer exceptional value and that stunning beachfront villas can still be found for the price of an average hotel.
Ben Tuff, Luxury Retreats’ Director of Marketing, said, “The time couldn’t be more right for this new offshoot devoted just to Thailand. It’s one of our fastest growing destinations, with good reason. The quality of villa you can get there for your money is mind-blowing.”
Samui is one of the most popular destinations featured on Thailand Villas by Luxury Retreats and has its own section. A page is allocated to each villa, with lots of pictures and specific information about the property, its location and its rates.
Most villas provide full-time staff and all are equipped with modern, stylish amenities. And every guest receives the same privileges as the company’s other clients. For instance, guests can prearrange services and activities, such as car rentals and tours, through Luxury Retreats’ complimentary concierge service
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