Poor Infrastructure Impeding Samui's Tourism Growth

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TOURISM

Poor infrastructure impeding Samui's tourism growth

Achara Deboonme

The Nation

KOH SAMUI: -- Koh Samui is expected to draw more hotel and residential investment despite last month's power glitch, but long-term prospects could be dented by poor infrastructure and planning, according to a market expert.

"The key issues are the same as in Phuket and all of Asia's resort destinations at present. Private-sector investment fuelled by booming economies is not being matched by government spending on infrastructure," said Bill Barnett, managing director of C9 Hotelworks, a Phuket-based hotel and residential consulting firm. "Also, Thailand's resort destinations are no longer simple idyllic destinations but are becoming urbanised, with issues now of population growth, traffic, waste disposal and crime. Local government does not have the support for this growth."

Samui made headlines in December after a rupture in a section of a 30-kilometre-long cable at tambon Taling Ngam on the island, leaving villagers and tourists without power for three days.

Still, Barnett foresees continued investment on Samui.

"We spoke to a number of [general managers] of international hotels over the incident. In some of the top properties which have full power capacity from generators, many guests did not know there was an issue. If the situation reoccurred it might be an issue, but there was minimal impact. The truth is that the upgrade of the electrical line was the issue, and it's a positive that the new line was put in place.

"We continue to see new investors look at Samui, as supply and demand are favourable and the island is benefiting from positive sentiment in the market," he said. C9 Hotelworks' market update released in August showed that in the first half of 2012 there were 455,778 passenger arrivals at Samui Airport, driving hotel occupancy to the highest level since 2008 at 67 per cent, against 59 per cent in the same period of 2011. Most of the tourists were from Britain, Germany, Thailand, Australia and Eastern Europe. The overall average room rate of US$144 (Bt4,310) registered a slight decline of 1 per cent against the first half of 2011. In the same period, the revenue per available room (RevPAR) surged 12 per cent because of occupancy growth.

The report also found that the recent increase in direct international flights signalled potential for sustained tourism growth. Increasing land transactions and investor interest in existing assets and projects on hold could signal a new wave of development activity.

At the end of 2011, there were 448 hotels with 17,204 rooms on Samui. Brands making their presence felt on the island include Four Seasons, Starwood's W, Banyan Tree, Six Senses, Orient Express and InterContinental. A new supply of 371 rooms is expected to enter the market over the next two years, through the opening of the 80-room Movenpick Resort & Spa Mae Nam Beach Koh Samui this year and the 210-room Ozo Samui in 2014.

Barnett noted that Samui's tourism potential was now limited by the tight capacity of its airport.

"Its tourism numbers are restrained by the lack of capacity, and it cannot attract broader charter flights and low-cost carriers. This is not entirely a bad thing, as the hotel market has stabilised and positioned the island at the top end of the market, but longer-term it will impair the growth cycle. The airport, roadways, water and electricity are key priorities for the government," he said.

Samui Airport now caters nearly 100 per cent to Bangkok Airways, the airport operator. Scheduled flights are also operated by Thai Airways International, Firefly and SilkAir. It is able to handle up to 2 million passengers per annum.

Declining to say whether rules and regulations to put a reasonable lid on new development are necessary, Barnett noted that the Thai government needed long-term planning and zoning for all tourist destinations, not just Samui.

"The government has turned a blind eye to its more important PR machine - Brand Thailand Tourism. Long-term planning and zoning exist in Singapore and [Hong Kong], but not Thailand. This is not a Samui issue, it's a national problem," he concluded.

-- The Nation 2013-01-28

[Tropicalevo]

Interesting article

"Barnett noted that Samui's tourism potential was now limited by the tight capacity of its airport.

"Its tourism numbers are restrained by the lack of capacity, and it cannot attract broader charter flights and low-cost carriers. This is not entirely a bad thing, as the hotel market has stabilised and positioned the island at the top end of the market, but longer-term it will impair the growth cycle. The airport, roadways, water and electricity are key priorities for the government," he said."

Personally - I think that this is in the correct order.

Fix bandit airways then keep on rolling out the infrastructure. (The extra cable from the mainland was already on order. The increase in reservoirs is already in the planning stage - just waiting for the budget. Roads - ongoing as always.)

[pacovl46]

Good. It's completely overrun already as it is. What Samui needs is less of everything, less tourists, less hotels, less cars.

[khunPer]

It is indeed a benefit for Koh Samui, that the airfare rates and the airport capacity limites charter flight and package budget tours and the many up-end resorts are aimed at higher rates, than mass tourism wish to pay. 448 hotels with some 17,000 rooms at an average rate of 4,000+ baht. That may keep Samui closer to Paradise.

[sprq]

Phuket, Samui, superb models for the destruction of Thailand's natural beauty and replacement by grossly ugly "development". Go, go, Thailand, ruin everything as fast as you can.

[Arkady]

They will know they have developed it enough when they have covered the entire surface with concrete or rubbish tips and gangs of armed hoodlums roam the island unrestrained. I have no interest in going back to the place or to Phuket.

Edited January 28, 2013 by Arkady

[kevvy]

soon where do you go in land land of smiles to have holidays .. now I stay at home and just do day trips ..been there done that (all the resort towns ) no more !!

[Tropicalevo]

Good. It's completely overrun already as it is. What Samui needs is less of everything, less tourists, less hotels, less cars.

And less people who write biased comments but have no idea what life is like away from Chaweng.

I have no interest in going back to the place or to Phuket.

Glad to hear that.

[TheGhostWithin]

I would have thought it was a perfect opportunity to charge more after building better investment, banjsh the rubbish airlines and start upgrading the type of visitors you get.

Oh yeah, get rid of the drug infested full moon parties, the stigma around those is enough to keep me from the whole of the south.. of, and the near daily murders. Please make a clean southern island chain so I can have a place to relax away from city life.

[Tropicalevo]

I would have thought it was a perfect opportunity to charge more after building better investment, banjsh the rubbish airlines and start upgrading the type of visitors you get.

Oh yeah, get rid of the drug infested full moon parties, the stigma around those is enough to keep me from the whole of the south.. of, and the near daily murders. Please make a clean southern island chain so I can have a place to relax away from city life.

Near daily murders????

What are you on?

We are talking about Koh Samui - not Brixton, Queens, or Sydney

[yorkie100]

I would have thought it was a perfect opportunity to charge more after building better investment, banjsh the rubbish airlines and start upgrading the type of visitors you get.

Oh yeah, get rid of the drug infested full moon parties, the stigma around those is enough to keep me from the whole of the south.. of, and the near daily murders. Please make a clean southern island chain so I can have a place to relax away from city life.

Please come and relax on Samui, it's a beautiful island with easy to find tranquility away from the crowds and full moon parties.

Stay away from the popular resorts and check ion at a small beach resort hotel and relax on one of our many beautiful quiet beaches.

And...I guarantee you will not be murdered during your stay.

(if I'm wrong, you can always sue me).

[belg]

if all those illegal tuk tuk taxi drivers, jet ski scammers, hotels, restaurants would start to pay proper taxes on their income, maybe there would be tax money for infrastructure ?

[Rooo]

if all those illegal tuk tuk taxi drivers, jet ski scammers, hotels, restaurants would start to pay proper taxes on their income, maybe there would be tax money for infrastructure ?

What illegal Tul Tuk drivers? Do you know how the tax system works? Do you know the grading on when & what you pay?

Perhaps best not to shoot off the hip.

[PoorSucker]

if all those illegal tuk tuk taxi drivers, jet ski scammers, hotels, restaurants would start to pay proper taxes on their income, maybe there would be tax money for infrastructure ?

There are no tuk-tuk on Samui.

Have you ever been to Samui?

Tax money for infrastructure is allocated according to population.

Samui has 60.000 official residents, but there are 250.000 people on the Island simultaneously.

We only get infrastructure money from the government for 60.000 people.

[robsamui]

They will know they have developed it enough when they have covered the entire surface with concrete or rubbish tips and gangs of armed hoodlums roam the island unrestrained. I have no interest in going back to the place or to Phuket.

We got that already - and what's worse is that they just wom't turn their meters on.

R

[stiggy]

think samui is crowded?

Soi 1 Maenam to Lamai will soon change your mind, great little drive across the island very peaceful.

[limbos]

Good. It's completely overrun already as it is. What Samui needs is less of everything, less tourists, less hotels, less cars.

And less people who write biased comments but have no idea what life is like away from Chaweng.

I have no interest in going back to the place or to Phuket.

Glad to hear that.

Life is still very busy and the roads are still very dangerous outside of Chaweng, partly because the roads are overcrowded. Fatal road accidents happen all over the island, not only in Chaweng.

When's the last time you been to Plai Laem/Bang Rak market around 5pm or when the Seatran arrives, anywhere between 5 to 6pm, just to name two samples outside of Chaweng.

[Tropicalevo]

Life is still very busy and the roads are still very dangerous outside of Chaweng, partly because the roads are overcrowded. Fatal road accidents happen all over the island, not only in Chaweng.

When's the last time you been to Plai Laem/Bang Rak market around 5pm or when the Seatran arrives, anywhere between 5 to 6pm, just to name two samples outside of Chaweng.

Every day Limbos. (I live in Plae Laem).

Yes it is busy - but everyone except the tourists knows that it is an accident waiting to happen at that time. The Seatran arrives at 5.30. You forgot to mention the fact that there are 3 flights arriving in the hour before then - so there is even more traffic.

My post was not a response to a traffic post - but a 'tongue in cheek ' response to two 'let's just bitch about Samui ' posts.

Samui does have two 'rush hours' and some bottle-necks outside of Chaweng. But - so do quite a lot of other holiday destinations. Does that stop us from going anywhere? Crikey - try driving from Birmingham to Devon on a bank holiday in the UK! Bang Rak market is a joy in comparison. I have never had to wait more than 5 minutes - except when 'someone of importance' arrives. But of course - 5 minutes is an eternity to some of the locals that drive here.

[samuijimmy]

Accidents happen in every country of the world.... it's not just a Samui thing... duh!!! No matter how good or bad the infrastructure !!!

Edited January 31, 2013 by samuijimmy

[marstons]

if all those illegal tuk tuk taxi drivers, jet ski scammers, hotels, restaurants would start to pay proper taxes on their income, maybe there would be tax money for infrastructure ?

There are no tuk-tuk on Samui.

Have you ever been to Samui?

Tax money for infrastructure is allocated according to population.

Samui has 60.000 official residents, but there are 250.000 people on the Island simultaneously.

We only get infrastructure money from the government for 60.000 people.

No tuk tuks just taxi meters who will not open meters as law requires. Songtaows that make prices as they go along. just my experience of living there for 8 years. Samui is same as every where else it has its problems that nobody wants to tackle. As for the population well have all farangs on the island got wives girl friends etc to register as living on the island to help. how many on this thread have?

[PoorSucker]

As for the population well have all farangs on the island got wives girl friends etc to register as living on the island to help. how many on this thread have?

Actually not so simple.

First you must have a house book you can register on.

My wife and son are on a friends house book here.

[TheGhostWithin]

Near daily murders????

What are you on?

We are talking about Koh Samui - not Brixton, Queens, or Sydney

Thanks for responding - but it appears you may have missed, or disagree with my view of the tourists view of Samui.

Koh Samui is located in the South of Thailand, which is home to most of the Thai Islands which are popular with tourists, along with the tourist epicenter of Phuket.

When Tourists come to the south, they do not initially come for "Samui", they come for "Thai Island paradise".

When they read about the huge amount of serious crime which is taking place (mostly away from Samui admittedly) in these areas, they associate it with the whole of the south (my ill communicated purpose of the original post) and then decide on an alternative plan.

Even good places get blemished by nearby bad ones, as good people get blemished by notorious brothers or sisters. Parts of the south have become the Brixton of Thailand, to relate to your parallel. Samui may not be one of these, but nearby places most surely are. It does not matter if your property which borders Brixton is a 5 star or not, it still borders Brixton.

[yorkie100]

Near daily murders????

What are you on?

We are talking about Koh Samui - not Brixton, Queens, or Sydney

Thanks for responding - but it appears you may have missed, or disagree with my view of the tourists view of Samui.

Koh Samui is located in the South of Thailand, which is home to most of the Thai Islands which are popular with tourists, along with the tourist epicenter of Phuket.

When Tourists come to the south, they do not initially come for "Samui", they come for "Thai Island paradise".

When they read about the huge amount of serious crime which is taking place (mostly away from Samui admittedly) in these areas, they associate it with the whole of the south (my ill communicated purpose of the original post) and then decide on an alternative plan.

Even good places get blemished by nearby bad ones, as good people get blemished by notorious brothers or sisters. Parts of the south have become the Brixton of Thailand, to relate to your parallel. Samui may not be one of these, but nearby places most surely are. It does not matter if your property which borders Brixton is a 5 star or not, it still borders Brixton.

I think the ghost within needs exorcising.

[itsala]

The real message is that with increasing airfares and more high quality hotels, the days of the Samui of old are numbered. Like every other destination. First come the backpackers, then the sex tourists, then the package tourists then it goes two ways...down or up. Phuket has fallen into the dark side. Bandit Airways may just unwittingly keep Us from that fate.

Case study if anyone cares would be Greece, two Islands Santorini or Ianapa(sic). The first embraced 5 star and influential families monopolized the inward transportation, the later embraced the club scene and the influential families monopolized the domestic transportation. Ergo Santorini is now one of the most expensive places on Earth and Ianapa is a deserted ghost Island.

[iluvbeaches]

I don't understand why everybody seems so insistent on Making Koh samui into some sort of mass travel destination in my opinion there are way to many of those type of places in Thailand as is! why can't we have one reasonably developed location which isn't very accessible to the mass tourist groups and that way a lot more pleasant to stay on?

I personally like that there's only one airline that is quite expensive relative to other destinations on koh samui that makes it a little bit less accessible and hopefully most of the very difficult tourists cheap Charlie's and package tourists choose to visit Phuket or pattaya instead.

Not to say that reasonable growth is bad but if you add another airport and another thousand flights a week it won't take very many years until what is currently somewhat unsustainable growth on samui becomes like a Patong due to the size of the island and lack of infrastructure.

I'm sure hoteliers, restaurants and business can see the benefit of this to stand out from other resort destinations in Thailand as travelers can enjoy the relative tranquility compared to some other destinations.

[notmyself]

I personally like that there's only one airline that is quite expensive relative to other destinations on koh samui that makes it a little bit less accessible and hopefully most of the very difficult tourists cheap Charlie's and package tourists choose to visit Phuket or pattaya instead.

To an extent. If you bolt on a BKK - USM return to an international flight it is very reasonable. My last flight UK to USM was only 40 quid cheaper if I done UK - BKK only.

[iluvbeaches]

I personally like that there's only one airline that is quite expensive relative to other destinations on koh samui that makes it a little bit less accessible and hopefully most of the very difficult tourists cheap Charlie's and package tourists choose to visit Phuket or pattaya instead.

To an extent. If you bolt on a BKK - USM return to an international flight it is very reasonable. My last flight UK to USM was only 40 quid cheaper if I done UK - BKK only.

Hmm I didn't realize this. That is very good. Since I usually fly from Bangkok I never have done all in connections from overseas.

But people who are on a budget can always fly air Asia to Surat Thani albeit from don muang but the possibility exists.

[notmyself]

I personally like that there's only one airline that is quite expensive relative to other destinations on koh samui that makes it a little bit less accessible and hopefully most of the very difficult tourists cheap Charlie's and package tourists choose to visit Phuket or pattaya instead.

To an extent. If you bolt on a BKK - USM return to an international flight it is very reasonable. My last flight UK to USM was only 40 quid cheaper if I done UK - BKK only.

Hmm I didn't realize this. That is very good. Since I usually fly from Bangkok I never have done all in connections from overseas.

But people who are on a budget can always fly air Asia to Surat Thani albeit from don muang but the possibility exists.

The UK - BKK - Surat (return) was 2 quid less than UK - BKK - USM. The high price of flying to and from Samui on a single inter regional flight doesn't matter to me as I never use it.

[Tropicalevo]

I have just heard from a friend that one tour company has 5,000 chinese guests arriving next week. I have heard similar numbers from other people that I know.

This is going to put some stress on the infrastructure? Let's hope that they do not all decide to rent motorbikes

(I understand that they are not flying via Bandit Airways - so we will still have the usual number of guests arriving at the airport!)

Silly season seems to be a solid 3 months now.

[khunPer]

I personally like that there's only one airline that is quite expensive relative to other destinations on koh samui that makes it a little bit less accessible and hopefully most of the very difficult tourists cheap Charlie's and package tourists choose to visit Phuket or pattaya instead.

To an extent. If you bolt on a BKK - USM return to an international flight it is very reasonable. My last flight UK to USM was only 40 quid cheaper if I done UK - BKK only.

Hmm I didn't realize this. That is very good. Since I usually fly from Bangkok I never have done all in connections from overseas.

But people who are on a budget can always fly air Asia to Surat Thani albeit from don muang but the possibility exists.

From some European countries the return ticket price may be same to BKK or USM.