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| challenging times for hua hin |
| Hua Hin hoteliers say Phuket revival is exacerbating a situation of falling tourist numbers against rising room supply, causing the current tourism slowdown and prompting them to be more creative and proactive in destination marketing. |
 The rapid rate of growth in room supply, which has been intensifying since 2005, resulted in 164 hotels with 5,321 rooms as of September last year, representing respectively a 16.31 per cent and 20 per cent increase compared to the same period in 2006.
In contrast, Tourism Authority of Thailand (TAT) central region two office director, Mr Wiboon Nimitrwanich, said Hua Hin's tourism situation was down by about 10 per cent in terms of foreign arrivals.
According to TAT statistics, while the total number of Thai and foreign guest arrivals at Hua Hin’s accommodation establishments from January to September last year increased by 10.64 per cent, the number of foreign guests had decreased by 12.74 per cent.
However, as in other major Thai beach resort destinations, the ever-intensifying competitiveness and slowdown have not deterred new hotel openings. And such confidence in Hua Hin tourism is deemed by hoteliers as good for the destination.
Sofitel Centara Grand Resort & Villas Hua Hin general manager, Mr Remko Kroesen, said: “Each hotel in Hua Hin, including the upcoming openings, has its own identity and followers, and this makes the destination more diversified in terms of products and markets.
"New hotels have intensified competition in the destination, but at the same time they have created more options," he said.
Among last year’s host of new hotel openings was the 240-room Sheraton Hua Hin Resort and Spa, eight-room The Barai at Hyatt Regency, 18-pool villa AKA Resort Guti and 62-room Rest Detail.
Mr Stephan Winkler, general manager of Sheraton Hua Hin Resort and Spa, which opened in August last year, said he was aware of the slowdown in the destination where a six to seven per cent drop in average occupancy rate (AOR) was felt last year.
But he said the resort had managed to leverage on being a new and international-branded property and had enjoyed a 50 per cent AOR within the first four months.
The resort’s average room rate (ARR), he added, was "at the level not lower than our value…our rates are above those of Hilton Hua Hin’s, but behind Hyatt Regency's".
Sofitel is the market leader in Hua Hin in terms of ARR. When pressed for rates, Mr Kroesen said the resort’s rates ranged from 9,000 baht (US$300) to beyond 12,000 baht during high season (July and August, and October to May).
Hyatt Regency is second only to Sofitel in terms of rates. Marketing director, Mr Eugene Tamesis, said in light of the new competition, the hotel planned to reposition its rate structure.
While he did not say how the hotel would restructure rates, he said: "Changes have to be made because the market has become more competitive, we ha?ve to work smarter in terms of quoting rates to our partner agents and FIT clients."
Hua Hin hotels' rates in fact rose more than 10 per cent, and considering the burgeoning number of high-end properties, made the destination more expensive and turned tourists away to less expensive beaches such as in Phuket, TAT's Mr Wiboon said.
His comment was confirmed by Anantara Hua Hin general manager, Mr Ivan Casadevall, who said: "For last year, high
season (from around October 2007 to April 2008), Hua Hin hoteliers saw a slight drop in the AOR by three to seven per cent, depending on the resort, but a healthy increase in the ARR by at least eight to 15 per cent."
However even with rising room rates, life is never easy for Hua Hin hoteliers. Occupancy rates are decreasing, and more competition is coming online.
Among new openings this year are the 243-room Courtyard by Marriott Hua Hin at Cha Am Beach and 123-key InterContinental Hua Hin Resort.
The 74-key Centara Grand Silapura Beach Resort and Villas, Hua Hin is scheduled to open next year.
Thus creative and proactive destination marketing is needed. The Hua Hin Hotelier's Club plans to stage more annual events this year in addition to the destination's two major events - Hua Hin Vintage Car Parade and Art Festival, and Hua Hin Jazz Festival.
The club, established in 2001, has discussed organising a few new upscale events such as the international hot air balloon festival, a golf tournament and a polo match.
"Hua Hin needs more events to boost the destination's image," Sofitel's Mr Kroesen said, and added while events did not necessarily help fill up the destination’s burgeoning room supply, they did help raise its profile.
It is also understood that one of the reasons pushing hoteliers to plan more upscale annual events was the move of Anantara Resorts' high-profile Elephant Polo event to Chiang Rai in the north of Thailand in 2006.
The Elephant Polo, held in Hua Hin yearly between 2001 and 2005, has been identified as the sixth largest event on the Thai tourism calendar by TAT.
The shift caused Hua Hin one less high-flyer event, driving the hoteliers to plan a new one which would be grander and have a
greater impact.
Mr Casadevall said the hotelier's club planned to invite the country's leading balloon operator, Chiang Mai-based Earth Wind & Fire, to stage an international balloon festival in Hua Hin this year.
He said a golf tournament on a high-profile level similar to the Asia-Pacific Johnnie Walker Classic was also being discussed with Hua Hin’s Palm Hill Golf Resort & Country Club, as was a traditional polo match.
Mr Winkler said the hotelier's club was also looking at staging a film festival, and added he hoped at least one of the event ideas would materialise soon.
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| Posted on 20 May, 2008, Resource from Sirima Eamtako |
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