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Tuesday, July 1, 2008
Welcome to www.samuipropertyonline.com,
the online version of Samui Property, an independent monthly property &
real estate newspaper published by Siam Map Co. Ltd., Koh Samui,
Thailand.
Samui Property offers impartial, objective
news articles, stories, legal advice & information, zone maps, photos,
classified adverts and features about real estate, property, villas,
developments, homes, house and land for sale and other real estate
related items on Koh Samui.
Please come back every month for fresh
news and information on the Koh Samui Property & Real Estate Market.
Long-Term Thinking
The continued success of Samui relies on sensible planning and marketing for the future.
Samui is currently in an important stage of development. The island has had to endure a number of issues throughout the years and it has survived and grown beyond all expectations. Samui is now on the verge of finally shaking off all of the problems that have previously limited its potential and, if handled properly, it can now come out of the shadow of Phuket and shine as the brightest star in Thailand.
Phuket has been a sophisticated and successful holiday destination for many years and, similarly, its real-estate market is well established and respected. However in recent times Samui has emerged as a genuine competitor in both tourism and property markets.
To be competing with Phuket to such a degree is quite astonishing if you consider that only 10 years ago Samui was little more than a backpackers’ retreat with poor infrastructure, a beautiful but tiny airport and only a handful of luxury resorts. How times have changed. Samui now apparently boasts more five-star luxury resorts than any other South East Asian island and, internationally, it’s regarded as one of the best worldwide destinations to invest in real-estate.
The island has come a long way in a very short time. Much of the recent development came about as a direct result of the 2004 tsunami which so devastatingly affected many other locations including, of course, Phuket. Many travellers to Thailand opted to try Samui and as a result the island, which had been growing at a steady and healthy pace, suddenly had to cope with a massive influx of visitors.
As tourism grew so rapidly so did the real-estate market on the island with land and property prices seeing considerable rises in value. In some ways Samui benefited greatly from Phuket’s misfortune; more tourists, more investment; improvements to infrastructure; and increased facilities. However, the island also suffered as a result of the rapid development. Poor quality construction and rushed developments led to poor planning and designs; forced by the speed at which things were required.
Psychologically things changed, too. Investors, residents and business owners suddenly realised that Samui could actually compete with Phuket, and the island genuinely had the assets and attractions to become Thailand’s number-one destination for tourists and property investment.
Improvements to the airport with increased flights and the introduction of new airlines and routes; the arrival of numerous international hotel brands; better quality construction; improved water and electrical supplies; better road-works and drainage solutions; phenomenal high-end residential projects; and a vastly improved worldwide awareness of the island are all things which have contributed in making Samui more established as an international destination, and it’s now on the cusp of greatness. All the signs suggest that the long-term future of the island looks extremely promising.
Despite all the positives, and there are too many to mention in one article, there should also be some caution and commonsense applied. The reason that now is such an important stage is that what happens in the next few years is crucial to the longevity of the island’s success as a tourist and real-estate option. Having achieved its current reputation the hard part is to keep that status and continue improving.
As already stated, Phuket is incredibly well-established as a resort destination. Its recovery after the tsunami has been amazing and it is once again very popular with tourists and property investors. That recovery has been brought about by sensible marketing of hotels and developments. Price reductions at hotels, special offers for tourists, budget flights and realistic pricing of land and houses have all assisted in getting visitors and investors to return. This is why it’s so important that Samui harnesses the potential it has, and maximises the benefits of visiting and investing in the island now.
Never before has the island’s profile been so high. The likes of Conrad, W Hotels, Banyan Tree, Four Seasons, Dusit and so on do not invest in short-term projects. They are here because they believe the island will retain its popularity in the future. More importantly, such brands have the influence and finances to actually impact on the course of the island’s long-term future. But care should be taken not to be too blasé about the island’s growth and the prospect of great returns on investments.
Samui’s airport now has a vastly increased passenger capacity; the number of good quality hotel rooms has risen dramatically, and continues to do so every month; rental properties are being built in all areas of the island and provide enormous accommodation options for tourists; competition in every aspect of business is growing; and the number of foreign residents keeps rising. But, Samui is becoming more expensive.
Transportation of goods to the island is an obvious factor. The cost of living here has often been quoted as high in comparison to other parts of Thailand. But, in reality, most people are prepared to pay a little extra and understand that products have to be flown or shipped onto the island adding a certain amount of extra costs.
Samui is attracting more high-end travellers who have money to spend and are unlikely to notice a few extra baht added here and there. However, to be a complete success, Samui has to appeal to all tourists whatever their budget. Businesses have to remain aware of the competition from both established destinations and emerging ones. And thought also has to be given to the Thai residents and workers who also have to pay for their food and drink on the island.
As long as prices remain realistic and competitive then there’s no doubt that Samui can be an outstanding destination for many years to come. But nothing is guaranteed. People will understandably want to cash in on the island’s success and make money whilst they can. But, if the disparity in general living expenses and land or property prices becomes too noticeable, then this may discourage both tourists and investors in the future.
By showing too much greed now, any benefits could be restricted to the short-term. But, by remaining competitive throughout this rapid growth in popularity, it will secure a healthy income for the long-term of everyone involved in life on the island. It’s time to be thinking ahead and planning for the successful long-term future of Samui. Everything suggests that all businesses will flourish and do well for many years to come.
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