Pattaya upbeat as arrivals surge

Demand for rooms, housing still strong

PATTAYA: -- Despite a turbulent 2006, with loud street protests, a military coup and New Year bombings in Bangkok, nothing has stopped the waves of tourists filling up Pattaya's rooms, say authorities in the travel and real-estate sectors.

The numbers speak for themselves for this beach town, says Royal Cliff Resort general manager Alexander Haeusler.

"From January to September 2006, there were 2.8 million foreign tourists registered as visiting Pattaya, up from 2.4 million in the same period in 2005," he says, quoting a survey compiled recently by local hospitality sources.

But while the future looks upbeat for the 1,120-room resort, considered the undisputed leader in luxury hotels for the Eastern Seaboard, Haeusler expects some short-term challenges that could prove volatile if hotel properties are not prepared.

"I was here during the 1997 financial crisis and saw it unfold before my eyes," says Hauesler, who was then resident manager of the Amari Airport Hotel.

"The current climate may turn out a bit turbulent also but, over the long term, it will be much better."

On the global front, he warns, much is also changing in the landscape of the travel business.

Pattaya's own numbers show sharp demographic changes. While 10 years ago, British and Western Europeans made up a major slice of the pie, Russian and East European visitors today form the bulk of arrivals.

British arrivals have fallen 10.5 per cent, dropping to 204,000 visitors from 229,000 in 2005 during the nine-month period.

Meanwhile, Russian figures were 292,000 during the same period, up 35 per cent from 215,000 the previous year.

Haeusler, an Austrian with several years of experience in the Middle East and Asia, says it is vital to note the changes, for example the rise of other groups such as those from India.

In the three quarters to September of last year, 162,000 visitors arrived from India, jumping 62 per cent from 108,000 in 2005.

"Many of our guests from India are prepared to pay higher room rates for superior rooms and services," he says. The Royal Cliff has recently opened an authentic Indian restaurant to cater for this rising tide of wealthy subcontinental visitors.

Five years ago, there would probably be less pressure to adapt to the changing environment.

Equally telling is the rising number of local visitors. Contrary to conventional beliefs that locals do not spend much, Pattaya tourism authorities say the average Thai spends about Bt2,200 per day, compared to foreigners who spend Bt2,900.

CB Richard Ellis chairman David Simister says that regardless of the troubles and tribulations facing the Thai hospitality and real-estate sector, foreigners continue to flock to the Kingdom.

While it is true they are staying a little shorter than usual - the average stay now being 2.9 days as opposed to 3.2 days the previous year, Pattaya is still doing much better than most of its rivals abroad.

Simister says over the long run, visitors who take a strong liking to resort towns such as Pattaya, Phuket and Hua Hin are most likely to buy holiday homes. Despite the difficulties in buying procedures - and leasehold agreements are somewhat short when compared with elsewhere - foreigners are still keen to come here.

The baffling situation has made Thailand the "envy of its neighbours", says Simister, who adds that countries like Singapore and Malaysia do offer more attractive packages. "But foreigners are just not as enthusiastic about them."

For global investors such as Dubai-based Istithmar Hotels and Kuwait's IFA Hotels, that observation has convinced them to invest here.

They each recently bought a 24-per-cent stake in Raimon Land, which plans to make one of its two tall towers in the Northpoint estate in North Pattaya a five-star hotel.

It is unclear which of the two Gulf giants will run the hotel, says a Raimon Land executive, but the project now has the tacit backing of strong Gulf governments.

There were 124,000 Middle Eastern visitors in the first three quarters of last year, up 81 per cent year on year from 68,000, says Haeusler.

What such trends suggest is quite clear, he adds. Top hotels must take note of who is coming and going.

The new groups - including China, with 330,000 visitors to Pattaya, up from 166,000 the previous year - will eventually shape the beach town's future development.

-- The Nation 2007-01-19

Overflow from Phuket???

The new groups - including China, with 330,000 visitors to Pattaya, up from 166,000 the previous year - will eventually shape the beach town's future development.

I found it strange how they tagged on the largest group right at the end as though it was an afterthought.