Mr. Nattha Kahapana, Director of Knight Frank Phuket revealed that Phuket is underway to welcome the coming high season, with new retail development projects located in Patong and Surin Beach. The most interesting one is Patong Promenede, developed by Baan Sukhothai at Patong Beach Company Limited, located on Bangla Road. It is the Shopping Dining & Entertainment Complex, being consisted of 150 retail shops on the space of approximately 40,000 square metre, where the parking area is arranged underground of approximately 2,000 square metre which will be able to accommodate over 700 cars. The project is estimated to complete by December, 2011.
Benzy Mall is another interesting project, located on Wirat Hongsyok Road, Phuket Town which has great potential as a new business quarter. The project covers 15 rai of land, the retail building will be developed as one two-storey and five single-storey buildings containing a total of 250 units. There will be the 60*20-metre water park situated in the middle of the project. Banana Walk is another chic mall catering beach feeling with the construction elements that include stone, wood, glass and bamboo. Its concept is sustainable retail practice. The project will provide 30 retail outlets, 5 restaurants and rooftop nightclub. The project is situated on 4,500 square metre land plot in Soi Bangla, just 100 metre to the beach.
Mr. Nattha added that not only the retail development has existed in Phuket, but the entertainment business has just been completed recently. The mega project in Phuket is from Ratchada Niramit operator of the Siam Naramit on Tiamruammit Road, will open a second Siam Niramit Theatre in Phuket, located on 50-rai of land, the project will consist of a 1,750-seat theatre. The project is located on Ratsada-Samkong Road, off the Bypass Road. The Splash Jungle Waterpark is developing in the new northern Centara Grand, probably better known as the West Sands Property Development, there will be 12 waterslides, a huge Superbowl slide and a 335-metre lazy river.
Phuket has a lot of hotel rooms, however the new facilities development will feature tourists to go and chill out during their holiday time. According to the Department of Tourism, the average occupancy rates in 2010 were 46.2%, increasing from 35.84% in 2009.
Ms. Risinee Sarikaputra, associate director of research and valuation of Knight Frank Thailand said that the 4-star hotel in Phuket achieved the occupancy rate during Jan to Oct, 2011 about 75%, increased from 64.83% in 2010. Patong is outperforming the rest of the island with occupancy rates of about 82% during Jan to Oct 2011. We also expect budget/economy hotels to perform better than 4-star hotels as travelers tend to be cost conscious. The total completed 4-star hotel supply in Phuket increased by 1,170 keys to 12,493 keys in the end of 2011. The additional supply came from the opening of 8 hotels located in different locations of Phuket.
According to the data of Department of Tourism, the first 10 months of 2011 proved that Phuket is successfully gaining an increase share in the mass tourism era. The emerging markets are Middle Eastern, Asian and Russian, increased by 63.2%, 41% and 14.5% respectively.
Ms. Risinee said that the research indicated that the average ADR of 4-star hotel in Patong increased in 2011, from just 2,490.76 in 2010 to 2,510.35 during the first 10 months of 2011. With 12 hotels in pipeline in Patong, the competition is estimated to be intense in this area. The ADR is estimated to decrease in Patong in the near future. The average length of stay is diminished due to the average length of stay of Asean tourists is only a few days, whilst the European tourists normally take longer holidays from a week to a month at a time.
Ms. Risinee has concluded that the hotels in Phuket are also facing increased competition from rental properties which are offering competitive rates, particularly for longer stay visitors, as well as competition from other resort destinations in the region.
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