Phuket · 2020. 5. 14. · PHUKET ECONOMIC INDICATORS 3 C9 Phuket Economic Overview: May 2020...
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Phuket Economic Overview May 2020 2019 Highlights Forward Outlook • Tourism growth for the island reflected a 4% y-o-y growth in total passenger arrivals at Phuket International Airport. • Thai baht appreciation against key global currencies and the China economic slowdown along with the US trade war issue muted macro economic prospects. • Branded residences became a majority segment in Phuket’s hotel pipeline reflecting a surge in investment-oriented property buyers. • Long-haul tourism markets are not expected to return until next year. Tourism recovery will rely heavily on intra-Asia point to point travel. • All eyes on Thailand’s central governments post- crisis economic plan and agenda on funding of Phuket’s significant planned transportation and infrastructure projects. • Private sector is expected to lead island development and heavy influence of Bangkok groups redirecting investment to provinces. Source: FazWaz Tourism master plan a critical step to island moving forward “Phuket’s economy heavily relies on tourism. In 2019, the accommodation and food services sectors made up nearly 50% to its total GPP. Due to the negative impact of the COVID-19 outbreak on tourism, the critical economic questions facing the island remain is it too big to fail, and is it time to diversify industries? With over 80,000 registered accommodation keys in Phuket, restoring overseas travel is a lever towards injecting cash flow into the tourism sector and stabilizing businesses. Looking beyond tourism, other key demand generators such as international schools and hospitals, real estate and the marine industry are key contributors to the island’s economic profile and have the opportunity to tap broader demand. Phuket’s economy rewinds as market set to go back to the basics Phuket’s economy for the remainder of year will rely primarily on the resilience of its tourism industry. In the longer term, the island’s immediate need of a comprehensive tourism master plan is a recurring challenge that must be addressed. A rise in public private partnerships over the next two to three years is expected, which possibly could be tapped to fund infrastructure development.” Current value of Phuket properties for sale: ฿100,633,770,078 43% 57% 22% 78% Phuket Property Market Value Condominiums Houses Primary market Secondary market Bill Barnett, Managing Director, C9 Hotelworks
Transcript of Phuket · 2020. 5. 14. · PHUKET ECONOMIC INDICATORS 3 C9 Phuket Economic Overview: May 2020...
PhuketEconomicOverview
May2020
2019Highlights ForwardOutlook
• Tourism growth for the island reflected a 4%y-o-y growth in total passenger arrivals atPhuket International Airport.
• Thai baht appreciation against key globalcurrencies and the China economic slowdownalong with the US trade war issue mutedmacro economic prospects.
• Branded residences became a majoritysegment in Phuket’s hotel pipeline reflecting asurge in investment-oriented property buyers.
• Long-haul tourism markets are not expected toreturn until next year. Tourism recovery will relyheavily on intra-Asia point to point travel.
• All eyes on Thailand’s central governments post-crisis economic plan and agenda on funding ofPhuket’s significant planned transportation andinfrastructure projects.
• Private sector is expected to lead islanddevelopment and heavy influence of Bangkokgroups redirecting investment to provinces.
Source:FazWaz
Tourismmasterplanacriticalsteptoislandmovingforward“Phuket’s economy heavily relies on tourism. In2019, the accommodation and food servicessectors made up nearly 50% to its total GPP. Dueto the negative impact of the COVID-19 outbreakon tourism, the critical economic questionsfacing the island remain is it too big to fail, and isit time to diversify industries?
With over 80,000 registered accommodationkeys in Phuket, restoring overseas travel is alever towards injecting cash flow into the tourismsector and stabilizing businesses.
Looking beyond tourism, other key demandgenerators such as international schools andhospitals, real estate and the marine industry arekey contributors to the island’s economic profileand have the opportunity to tap broader demand.
Phuket’seconomyrewindsasmarketsettogobacktothebasics
Phuket’s economy for the remainder of year will relyprimarily on the resilience of its tourism industry. Inthe longer term, the island’s immediate need of acomprehensive tourism master plan is a recurringchallenge that must be addressed. A rise in publicprivate partnerships over the next two to three yearsis expected, which possibly could be tapped to fundinfrastructure development.”
CurrentvalueofPhuketpropertiesforsale: ฿100,633,770,078
43% 57%
22%
78%
PhuketPropertyMarketValue
Condominiums Houses Primarymarket Secondarymarket
BillBarnett,ManagingDirector,C9Hotelworks
Accomodationand food servicesactivitiesTransport,storageand communicationsOtherserviceactivitiesWholesaleand retailtradeFinancialand insuranceactivitiesPublicadministrationanddefenceConst ructionAgricu lture, forestryand fishingRealestateactivitiesHumanhealthactivitiesManufacturingUtilitiesEducation
PHUKETECONOMICINDICATORS
C9PhuketEconomicOverview: May2020
Source:OfficeoftheNationalEconomicandSocialDevelopmentBoardDataFY2018andC9HotelworksMarketResearch
2
46.2%
19.6%
7.3%
5.9%
3.1%
2.7%2.7% 1.7%
4.7%
1.5%1.4% 0.8%
GrossProvincialProduct(GPP)bySector
AccommodationandFoodServicesGPPComparison
ConsumerPriceIndex(CPI)
-1.0%-0.5%0.0%0.5%1.0%
1.5%
9899100101102
103
2015 2016 2017 2018 2019
CPI InflationRate
Source:OfficeoftheNationalEconomicandSocialDevelopmentBoardandC9HotelworksMarketResearch
Phuket’sGPPinthetourismsectorremainshighestamongtheprovinceswherethemostpopularbeachdestinationsarelocated
TourismiskeydriverofPhuket’seconomy.ItscontributiontototalGPPrepresentsnearly50%,andshareoftheexpandedeconomyisevenhigher
Baht (inbillion)
Source:BureauandEconomicIndices,MinistryofCommerceandC9HotelworksMarketResearch
-
20
40
60
80
100
120
2014 2015 2016 2017 2018
Chonburi
SuratThani
Phuket
Krabi
HighutilitycostsandtransportationexpenditurehavecontinuedtoelevateCPI
2.4%
PHUKETECONOMICINDICATORS
C9PhuketEconomicOverview: May20203
UnemploymentRate
ForeignWorkPermits
0.5%
0.7%
0.9%
1.1%
1.3%
1.5%
2017Q1
2017Q2
2017Q3
2017Q4
2018Q1
2018Q2
2018Q3
2018Q4
2019Q1
2019Q2
2019Q3
2019Q4
Source:MinistryofLabour andC9HotelworksMarketResearch
Source:ForeignWorkersAdministrationOffice,DepartmentofEmploymentandC9Hotelworks MarketResearch
Propotionofforeignworkers fromLaos,MyanmarandCambodiain2019accountedfor87%ofislandworkpermits,withothernationalitiestotalingnearly10,000
DeclineinPhuket’stourismdemandinsecondhalfof2018contributedtodropinemployment
0
20,000
40,000
60,000
80,000
100,000
2015 2016 2017 2018 2019
WorkersfromLaos,MyanmarandCambodia OtherNationalities
DEMANDGENERATORS
C9PhuketEconomicOverview: May20204
InternationalSchoolsThe island over the past two decades has evolved into a regional destination for internationalstandard primary and secondary international-level education. This sector services local Thai’s andthose from Bangkok and other locations in Thailand along with a diverse multicultural base ofinternational students.
Name Established NumberofStudents Curriculum
BritishInternationalSchool,Phuket(BISP) 1996 850 British,IBDiploma
Headstart InternationalSchool,Phuket 2005 800 British
InternationalSchoolofPhuket(ISP) 2008 650 British
Kajonkiet InternationalSchool(KIS) 2011 600 British
UnitedWorldCollegeThailand(UWCT) 2009 490 FullIBprogram
Berda ClaudeInternationalSchool(BCIS) 2017 400 British/French
QSIInternationalSchoolofPhuket 2000 110 American
OakMeadowInternationalSchool 2007 100 International
BudsInternationalSchool 1990 60 American
MarinasWithfoursignificantmarinasalllocatedonPhuket’sEastCoat,themarineandyachtingindustryisoneoftheleadersinSoutheastAsia.Name Established Numberof
BerthsNumberofHardstands
NumberofDryStackingBays
PhuketYachtHaven 1997 320 30 88
Ao PoGrandMarina 2006 300 80
PhuketBoatLagoon 1994 180 144 30
RoyalPhuketMarina(RPM) 2005 100 26 60
Source:C9HotelworksMarketResearch
Source:C9HotelworksMarketResearch
DEMANDGENERATORS
C9PhuketEconomicOverview: May20205
Name Established LeasableSpace(m²)
CentralFloresta 2018 300,000
CentralFestival 2004 120,000
Junceylon 2006 75,000
CentralPatong 2019 12,000
PortodePhuket 2019 12,000
BlueTreePhuket 2019 11,210
Robinson 1995 510
RetailMajor shopping malls in Phuket are clustered mainly in Kathu (peripheral of Phuket City) and Patong.They cater to local residents as well as being key demand generators for tourists. The marketdevelopment cycle is now seeing a trend towards community malls and mini urban catchment areas.
HospitalsPhuket’s sustained growth in international standard medical facilities has been a key advantage inattracting foreign property buyers, retirees and supporting the tourism industry.
Name Established NumberofBeds
Vachira PhuketHospital 1906 600BangkokPhuketHospital 1993 266Dibuk Hospital 2015 224BangkokSiriroj Hospital 1940 196Patong Hospital 1986 120MissionHospitalPhuket 1937 110PhuketInternationalHospital 1982 105ThalangHospital 1982 60
Source:C9HotelworksMarketResearch
RobinsonLifestyleThalangmallwithaleasablespaceof20,000m² iscurrentlyunderconstruction
Phuketisthesecondmostpopularmedicaltourismdestinationwithinthecountry.Thereisstrongassociatedgrowthinwellnessandhealthfacilities
Source:C9HotelworksMarketResearch
MainlandChina 2,000,732 -9%
TOURISM
C9PhuketEconomicOverview: May20206
Source:AirportsofThailandandC9HotelworksMarketResearch
NumberofPassengersPhuketInternationalAirportPassenger&FlightArrivals
-
16,000
32,000
48,000
64,000
80,000
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
PassengerArrivals FlightArrivals
NumberofFlights
3,476,147
4,039,775
4,567,215
5,194,956
5,337,751
2,945,432
3,509,571
3,853,839
3,922,720
3,728,615
2015
2016
2017
2018
2019International Domestic
InternationalvsDomesticAirportPassengerArrivals
Top5KeyGeographicSourceMarkets
11.3%CAGR(2015-2019)
6.1%
Russia 729,435 8%
India 322,581 239%
Australia 248,375 -3%
SouthKorea 212,864 5%
8%
43%
6%
29%
5%4%5% ASEAN
NortheastAsia
SouthernAsia
Europe
OCEANIA
America
Other
Source:OfficeofCommercialAffairsPhuketDataasofFY2019andC9HotelworksMarketResearch
§ Passenger arrivals at Phuket International Airport marked a sustained upward growth trajectory overthe past 10 years from 2.8 million in 2009 to over 9 million in 2019. Direct flights are the main driverwith a compound annual growth rate (CAGR) of 11.8% with international flight arrivals soaingr byalmost fou rfold during the same period.
§ Since 2011, Mainland China surpassed Australia and maintained to be the dominant source market.India is the fastest-growing market, which surged by 239% last year and became the third-largestinternational source market.
Source:AirportsofThailandandC9HotelworksMarketResearch
Asia
TOURISM
C9PhuketEconomicOverview: May20207
HotelSupplyvsRoomNightsDemand
HotelPipeline
-
10
20
30
40
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
AnnualAvailableHotelRoomNights AnnualHotelRoomNightsDemand
NumberofRoomNights(inmillion)
§ Hotel supply generated a CAGR of 11% between 2013 and 2019. During the same period, the market-wide hotel occupancy rates of more then 70% have been maintained since 2013, indicating growingroom night demand.
§ Looking forward, with the further completion of planned infrastructure, hospitality developments, andtourism attractions, Phuket will be transformed and continue to magnify its destination awareness andattractiveness. Though with an escalating hotel supply, hotel rates will be challenged and diversemarket segments and products are needed.
Source:ThailandMinistryofTourismandSportsandC9HotelworksMarketResearch
Source:C9HotelworksMarketResearch
Hotels Location Keys OpeningDateFourPointsbySheratonPatongBeach Patong 600 Q22020JWMarriottPhuketResort&SpaChalongBay ChalongBay 189 Q42020TheBeachPlazaPhase1 Kata 730 Q42020AngsanaOceanview Bangtao 116 Q42020OceanfrontKalim Kalim 200 2020AnayaraLuxxPanwaResort CapePanwa 44 2020NokuRoxyPhuket ChalongBay 91 2020HiltonPhuketPatongResort Patong 300 2020CourtyardbyMarriottPhuket ChalongBay 277 Q12021HolidayInnVanaNavaPhuket Kathu 255 Q12021HiltonPhuketMaikhaoResortandSpa MaiKhao 257 Q32021MeliáPhuketMaiKhao MaiKhao 101 Q32021MeliáPhuketKaron Karon 224 Q42021ThayapuraHotelPhase2 Thalang 138 Q42021CentraCentralPhuket Kathu 170 Q22022COSICentralPhuket Kathu 180 Q22022NovotelPhuketNaiharn NaiHarn 650 Q22022PortoDePhuketHotelbyCentara Bangtao 135 Q42022MandarinOriental,Phuket LaemSinghBay 105 2022RadissonHotelMaiKhao MaiKhao 222 Q12023HolidayInnExpressPhuketKata Kata 300 2023CentrabyCentaraMaikhaoResortPhuket MaiKhao 280 2024The137PillarsEstatePhuket Kata 66 TBASpaceHotel Kathu 105 TBATotalHotelKeys 5,735
KEYPUBLICINFRASTRUCTUREHIGHLIGHTS
C9PhuketEconomicOverview:May20208
May2020
PhuketInternationalAirportExpansion
Budget:THB14.7billion
PhuketIslandLightRailTransit
Budget:THB34.8billion
• Phase2:capacity- 18.5millionperyear&newparkingbuilding(1,500carparkspace)
• Phase3:capacity- 25millionperyear(2023– 2025)
• Phase1:41.7km- PhuketInternationalAirporttoChalong Circle
• Phase2:northernextensiontoThaNoon
• Expectedtoserve70,000passengersperdayuponcompletion
AndamanInternationalAirport
Budget:THB79billion
• Location:Khok Kloi,Phang NgaProvince(GreaterPhuket)
• RunwayLength:3,000meters
2024(Phase1)
2025
Kathu-Patong BeachExpressway
Budget:THB14billion
• Length:3.98km
• Connection:Phra MettaRoad(Patong)– HighwayNo.4029(Kathu)
• Expectedtoserve65,000vehiclesdaily2026
Sakoo-KohKaew Expressway
Budget:THB5.5billion
• Length:22.4km
• Connection:PhuketInternationalAirporttoKoh Kaew
PhuketWater-supplyPipeline
Budget:THB3.5billion
• Water-productionstation&waterpurificationsystem
• Expectedtoprovideaddiotional watersupplytoPhuketwithapproximately3,000cubicmetersperhour
Source:C9HotelworksMarketResearch
C9HotelworksCompanyLimited9LagoonRoad,Cherngtalay,Thalang,Phuket,83110,Thailand
(OfficelocatedattheentranceofLagunaPhuket)T:+6676325345
