SAMUI : Hansar Samui Resort is confident it can achieve 70% occupancy next year as tourist sentiment improves, up from the current rate of 40%, says hotel owner Somboon Chayavichitsilp

Occupancy in February was very good but it slowed from March to May due to the political crisis. Since June occupancy has started to pick up again.

“After the riots calmed down, foreign tourists returned. We hope the peace continues,” he said.

“The situation is very dynamic. Usually, the break-even period for a hotel investment is eight years, but now it takes longer than that.”

Hotel rooms on Samui have increased from 12,000 before the 2004 tsunami to 20,000 this year, up 5-10% from 2009.

Mr Somboon, chairman of the residential and hotel developer Somhansar Co, said that under the prevailing circumstances, the company will slow its construction schedule to less than 100 hotel rooms a year.

“We plan to have at least six hotels that we also manage in major beach destinations in Thailand,” he said. “But hotels today are not as easy because the baht has strengthened by 20%.”

In addition, a plan for oil exploration up to 40 kilometres from the island will definitely have a negative impact on tourism, he said.

Tourism on Koh Samui generates about 20 billion baht in revenue a year but investment tops 100 billion, so the plan to drill should be reconsidered, said Mr Somboon.

At a cost of 700 million baht, Hansar Samui Resort had a soft launch on Feb 1 and an official launch on July 1. Occupancy is between 40% and 50% currently.

August is holiday season for Europeans, and the French are the hotel’s main guests. Scandinavians typically travel to Thailand from November to March and Chinese guests will arrive next month.

Located on a 6.5-rai leasehold plot on the emerging beach Bo Phut, the hotel has 74 rooms at rates of 6,000 to 14,000 baht a night.

The company manages the hotel and uses internet partners and travel agencies as marketing channels. It has signed with 10 major travel agencies in Europe and will add an Australian one soon.

“The internet can help build a hotel’s reputation more quickly than usual, which used to take over three years. Word of mouth on the internet is key so we will try to personalise our guests’ experiences,” said Mr Somboon.

The company plans to open Hansar Bangkok Hotel on Ratchadamri Road in the fourth quarter after construction was delayed due to the political unrest.

Somhansar also has four rai of land on Sukhumvit Soi 1 and is studying whether to develop a hotel or a luxury condominium.

source – www.bangkokpost.com