INVESTMENT in Phuket’s hotel property sector is expected to exceed 10 billion Thai baht (US$315 million) for the first-time ever in 2012, according to Jones Lang LaSalle Hotels.

Mike Batchelor, managing director of Investment Sales at Jones Lang LaSalle Hotels, said: “Phuket saw record investment in the first half of 2012. The market looks on track to enter a renewed period of growth, as savvy international investors continue to secure landmark properties in Asia’s premier resort destination.”

Since the start of the year, Jones Lang LaSalle Hotels has managed the sales of three properties in Phuket, including the acquisition of the 368-room Movenpick Resort & Spa by Malaysia-based TA Global in April; the 260-room Evason Phuket & Bon Island at Rawai by Singapore-based Lum Chang in May; and the 254-room Laguna Beach Resort by Hawaii-based Outrigger Hotels & Resorts in July (TTG Asia e-Daily, July 24, 2012).

“With international passenger volumes surging 30 per cent in 2011, the island’s international appeal remains strong,” said Batchelor.

“In fact, international visitors to Phuket exceeded domestic arrivals for the first time (in 2011). This growth has been fuelled by excellent air links and the expansion of low-cost carriers across the region.”

Other factors driving growth to Phuket include a US$180 million airport upgrade slated to commence later this year – which will double existing capacity to 12.5 million passengers per annum, and the gradual return of international confidence in Thailand due to sustained political stability since the 2011 elections.

Further hotel investment activity is expected in the second half of 2012, with Jones Lang LaSalle Hotels due to launch a five-star asset on Phuket’s west coast this week, ahead of the peak travel season starting in November.

PRICES in most areas of travel spend are expected to grow modestly around the globe next year, with some of the most significant inflation expected in the Asia-Pacific region, according to Carlson Wagonlit Travel’s (CWT) 2013 Travel Price Forecast.

“Price increases in 2013 will begin to level off in most regions throughout the world compared to what travel buyers experienced in 2012, as booming economies like Asia-Pacific’s begin to normalise, and as uncertainty remains in Europe,” said Nick Vournakis, senior vice president, Global Product Marketing & CWT Solutions Group.

“While slightly higher prices will be the reality again next year as demand for travel outpaces supply in most places, our forecast demonstrates there is still plenty travel buyers can do to watch costs and take care of travellers through other measures, including reexamining how they influence traveller behavior,” he added.

According to CWT, economic growth in Asia-Pacific is expected to stabilise in 2013, which will likely lead to modest price increases, although specific results vary widely by country. Airline prices are expected to increase by about 2.5 per cent, while average daily hotel rates will likely increase by about 3.5 per cent in 2013.

Singapore will lead the way in 2013 with an eight per cent increase in hotel rates amid strong travel demand and lagging supply; prices in Hong Kong will also increase more than the regional average, as clients shift from four- to five-star hotels to three-star alternatives.

Meetings and events spending will increase by about six per cent, while group sizes will decrease by around 3.8 per cent, as organisations attempt to mitigate rising supplier prices by holding a larger number of meetings with fewer attendees and shorter durations.

THAILAND received 10,496,789 international visitors in the first half of 2012, a 7.6-per cent increase compared to the same period in 2011, and on course to meet the 20.5-million full-year overseas arrivals target set by the Tourism Authority of Thailand.

The key contributor to growth was arrivals from China, which for the first time crossed the one-million mark during the six-month period to total 1,124,234 visitors, a 28.87-per cent jump over the first half of 2011.

Japan was the fourth largest source market (630,058, +11.47 per cent), while South Korea was the fifth (540,523, +4.88 per cent).

Arrivals from ASEAN markets such as Vietnam (+24.96 per cent), Brunei (+20.15 per cent), Cambodia (+12.32 per cent), Myanmar (+12.30 per cent), Laos (+9.16 per cent), Indonesia (+4.40 per cent) and Singapore (+4.53 per cent) registered good growth.

Even though Malaysia came in as the second largest market with 1,115,721 arrivals, this was a drop of 8.53 per cent year-on-year. The Philippines was also down (-3.44 per cent).

Russia remained the largest source market in Europe, with total arrivals of 634,312 (+12.21 per cent). The UK and Germany came in with 433,989 (+1.52 per cent) and 357,472 (+9.71 per cent) arrivals, respectively. French visitor numbers totalled 304,717 (+17.11 per cent). Arrivals from Norway, Sweden and Denmark grew by 17.59 per cent, 16.45 per cent and 14.84 per cent, respectively.

From the Americas, the US contributed 379,430 arrivals (+8.63 per cent). Canadian visitor numbers grew by 10.62 per cent to 114,678, while Brazilian arrivals grew by 23.65 per cent to 14,965.

India was the biggest source of visitors from South Asia and the sixth largest source overall, up 6.32 per cent to 504,634 arrivals. Pakistani arrivals totalled 34,809 (-2.65 per cent). Bangladeshi visitor numbers totalled 33,494 (-0.20 per cent). Arrivals from Sri Lanka grew by 20.85 per cent to 32,878.

In Oceania, arrivals from Australia and New Zealand were up 9.63 per cent to 427,096 and 8.15 per cent to 49,365, respectively.

From the Middle East, the UAE experienced a decline of 0.76 per cent. However, other Middle East source markets were up, especially Saudi Arabia (+50.51 per cent) and Kuwait (+19.97 per cent). Arrivals from Egypt were up by 22.49 per cent.

INDONESIANS are choosing to travel further and wider for their Lebaran holidays this year, according to the latest data from Wego.co.id.

Even though it’s normal to see an increase in flight-only bookings for the Lebaran holiday period as people return home, this year, accommodation is also being booked and at a far wider range of destinations – 165 in total compared to 69 at this time in 2011.

Hotel searches have almost tripled on wego.co.id for the period immediately following Ramadan, this year from August 17–26.

In 2011, Bali was the clear choice – with two-thirds of domestic hotel searches using Wego for the island.  In 2012, and with much stronger adoption of the dedicated Bahasa Indonesia wego.co.id, the post-Ramadan crowds seem to prefer the cooler climate of Bandung (10 per cent), with Yogyakarta also popular (nine per cent). Lombok, Surabaya and Malang, close to Balekambang beaches, are also achieving a 2-3 per cent interest, followed by Semarang and Medan.

Another development is Indonesians’ choice of hotel category. While travellers range of accommodation choice for Lebaran extends from suites to bungalows, three in every four users are now arranging three-, four- and five-star stays, an increase on last year’s 71 per cent.

Flight searches are proving similarly diverse. Two-thirds of Wego’s traffic intend to use Jakarta’s Soekarno Hatta airport as their departure point. The second most popular port of departure is Balikpapan, which outnumbered more populous Surabaya. Batam follows, then Medan.

Garuda Indonesia is receiving a quarter of bookings on wego.co.id, followed by Lion Air at 20 per cent, AirAsia at 16 per cent and Malaysia Airlines at nine per cent. However, Tiger Airways, Sriwijaya Air and Batavia Air account for one in five tickets during the break.

Reflecting international trends, Singapore accommodation searches are up from a quarter last year to a third of all conducted on the site for the period.  Indonesians are also comparing options for Kuala Lumpur at eight per cent and Genting Highlands at three per cent of the international total.  Malaysia accounts for 16 per cent overall.

Hong Kong has jumped from 11 to 15 per cent of searches, well ahead of mainland China’s four per cent, although many searches target nearby Guangzhou and Shenzhen.

Thailand is maintaining its 11 per cent share. Bangkok, fully recovered from the flooding, accounts for five per cent and Phuket three per cent, with Krabi and Pattaya also popular choices. Macau continues to rise at seven per cent of the total and Japan has recovered to three per cent.

PATTAYA is on track to receive a record eight million hotel guests in 2012 – the highest figure for any resort destination in Thailand.

According to the latest ‘Pattaya Hotel Market Update’ by C9 Hotelworks, Pattaya posted a nine per cent surge in hotel occupancy last year, while the occupancy rate for chain properties in the destination reached 74 per cent – eight per cent more than non-branded hotel inventory.

The sharp upturn was driven by a mix of growing domestic demand and improved access and transport infrastructure, explained Bill Barnett, C9 Hotelworks’ managing director.

He said: “With the geographic shift away from longhaul tourists to the Asian and domestic segments, key demand generators such as large-scale retail, tourist attractions and a rising residential resort market have fuelled positive sentiment.”

Thailand, Russia and China were the top source markets for Pattaya in 2011, with a combined share of 59 per cent. Passenger arrivals at U-Tapao International Airport rose 39 per cent in 2011, an increase for the second consecutive year.

When compared to other Thai destinations such as Phuket, Chiang Mai and Koh Samui, Pattaya “has less pronounced seasonality which results in mitigating volatility,” Barnett noted.

Looking forward, C9 Hotelworks pointed out that major investments in tourist attractions and branded theme parks in the Greater Pattaya area would help to broaden market demographics.

THAILAND continues to retain its allure as a travel destination among Singaporeans, if going by bookings made on ZUJI Singapore for this June holiday season.

Three Thai destinations – Bangkok, Koh Samui and Phuket – were among the top 10 holiday spots chosen by Singaporeans.

Bangkok was the clear favourite, with booking volume recording a strong 50 per cent year-on-year increase. Hong Kong came in second, while Shanghai was third.

For beach holidays, Singaporeans picked Bali most often, followed by Koh Samui and Phuket. Koh Samui registered the fastest growth among all destinations.

Meanwhile, Yangon saw a significant surge in interest among Singaporean travellers, posting a 150-per cent year-on-year growth in bookings.

Further afield, London grew 30 per cent year-on-year to become the most popular longhaul destination.

Despite lagging behind New York and Los Angeles, San Francisco rose up the popularity ranks faster than other North American destinations.

Singaporeans’ Top 20 June Holiday Destinations 2012

1. Bangkok
2. Hong Kong
3. Shanghai
4. Tokyo
5. Bali
6. Seoul
7. Taipei
8. Beijing
9. Koh Samui
10. Phuket
11. Kuala Lumpur
12. London
13. New York
14. Guangzhou
15. Los Angeles
16. Ho Chi Minh
17. Yangon
18. San Francisco
19. Penang
20. Melbourne

Source: ZUJI Singapore

JACTRAVEL, a UK-based wholesaler of hotel accommodation, has forecasted a dramatic slump in London hotel bookings during the upcoming 2012 Summer Olympic Games.

Based on a comparison with its forward bookings at this time last year for London and other European cities, JacTravel believes that average occupancy levels in London will drop by around 30 per cent year-on-year during the Olympic period.

The wholesaler reports that London hotel bookings in July are currently more than 35 per cent down on 2011, while August bookings are almost 30 per cent down. By comparison, bookings in major European cities are substantially up, some by more than 100 per cent.

Source: JacTravel

JacTravel CEO, Mario Bodini, said: “There is a tragic irony in the numbers we are seeing. London will be a fantastic place to visit in July and August, with lots of cultural activities taking place around the Olympics, in addition to all the city’s well-known attractions. It is a time when the place should be heaving, but instead, it is likely to be comparatively empty.”

While postulating that the dampened demand for London could be due to travellers waiting to see if rates fall before committing to booking, JacTravel believes it is more likely the result of a displacement effect, with regular visitors deciding to avoid London in July and August owing to the presence of the Olympics.

JacTravel also attributed the dismal booking numbers to the longhaul market being driven away from London by prohibitive hotel prices and punitive booking conditions during the event.

THE FIRST four months of 2012 threw up several interesting outbound travel trends in Singapore, with ZUJI Singapore registering a significant increase in flight and hotel bookings to destinations that were further afield.

Koh Samui saw a 25 per cent (year-on-year) jump in demand, while Hokkaido (+ 40 per cent) and the Maldives (+ 60 per cent) were also popular. European destinations were especially hot, with Paris (+ 30 per cent), London: (+ 40 per cent) and Barcelona (+ 200 per cent) receiving the bulk of the heightened interest.

According to ZUJI Singapore, outbound travellers were picking Koh Samui for short getaways in place of the usual destinations such as Bali, Phuket and Langkawi.

In addition, the growing number of affordable flight options, even if it requires a stopover, meant exotic and far-flung destinations such as Hokkaido and the Maldives had become more accessible.

Travellers were also switching their choice of destination to regions where they enjoy a significant advantage in terms of currency exchange. Europe is seeing a surge in demand due to ongoing instability in financial markets and its plummeting currency.

In terms of forward bookings, ZUJI Singapore reported that travel sentiment for Europe was high over the upcoming summer season, while bookings to Hokkaido over the winter season were already pouring in.