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It’s time to pay attention to Thailand’s western coast

All eyes on the Andaman as the nation’s second-highest office issues directive on the ‘Riviera’

The coast of mainland Thailand facing the Andaman Sea has got the shorter end of the tourism stick, compared with its eastern counterpart.

Addressing this imbalance, the Tourism and Sports Ministry will be proposing the Riviera Thailand project during a Cabinet retreat in Phetchaburi on Tuesday. The announcement was made at the request of Deputy Prime Minister Somkid Jatusripitak, revealed Tourism and Sports Minister Weerasak Kowsurat on Sunday.

The Riviera, a coastal stretch that includes such towns as Phetchaburi, Prachuap Khiri Khan, Chumphon and Ranong, has long been overlooked for tourist spots along the Gulf of Thailand, the deputy prime minister reasoned.

“The Andaman has been ignored by Thais because it doesn’t have the legacy of Hua Hin nor road access, and the hotels are about beaches, while most Thais prefer more urban-type destinations,” said Bill Barnett, managing director of hospitality consultancy C9 Hotelworks.

February 16, 2019ZONEZI No commentsNews, Real Estate

Hillside and cliffside developments in the Thai island require careful planning

Developers who want to build on vantage points, promontories, and other plots of significant terrain in Phuket will need to contend with the government’s new environmental regulations for the touristy Thai island, a leading hospitality consultant said.

Under rules issued by the Ministry of Natural Resources and Environment, structures are forbidden from being built on land with a gradient or slope of 35 percent and above, significantly down from the previous threshold of 50 percent.

Additionally, if the area is elevated more than 40 metres, a building must not be six metres high. A building sited in an area elevated below 40 metres must not be 40 metres high.

“Who are the winners and losers for development? Hillside condominium projects certainly will become more difficult as will cliff hugging hotels,” reported Bill Barnett, managing director of the hotel consultancy C9 Hotelworks.

February 16, 2019ZONEZI No commentsConstruction, News

Cold Calling is, by some distance, the most controversial topic in the sales community right now.

There’s been a lot of articles written about it and everyone has strong opinions. Most people are talking from personal experience and some with the benefit of having run a team.

I work for a company that makes more than 40,000 cold calls per week, to all parts of the globe. Does that give me more insight than most? I’m not sure, but here’s my tuppence worth to add to the debate, tell me what you think once you’ve read about what we’ve learned.

First the good news – it does still work – no matter what anyone tries to tell you.

Now the bad; cold calling isn’t easy and never will be…period. But the worst thing about it? The time it takes.

Does that time make it a viable way for an expensive BDM to spend their time? Again, things aren’t as black and white as most arguments I’ve seen and read. The genuine answer is; it depends.

On what?

Geography is, perhaps surprisingly, one of the biggest variables. Both where you are calling to and from. Brand recognition is huge. Having an engaging story is way more important than your product. Saturation plays a part – we know this more than most as a telemarketing agency – I’m not sure there’s a marketing or sales director (our usual KDM’s) who hasn’t been called a thousand times by telemarketing agencies. Timing is more important than people give it credit for. Data is the essential fuel required for cold calling. Ability is important, experience less so. What you say isn’t nearly as important as how you say it (despite the endless articles about what words to use). But attitude is, by some distance, the biggest single determinant of a successful outcome.

Before I go any further – we need to define what I’m talking about when I say cold call.

I went to see Joanne Black give a talk this morning (thanks John Smibert and Tony Hughes for inviting her Down Under) and I agree with Joanne’s definition as; someone who I have never spoken to, who doesn’t know me and whom I’m now calling out of the blue.

Everything else has caveats.

Talking of caveats or perhaps disclaimers – I had better cover some of those before I go any further. These are my personal observations made from watching, hearing and getting results on the more than 40,000 cold calls we, as in the company I work for, make every week to various parts of the world. What I’m sharing are generalisations. But I won’t share data, as my boss wouldn’t dream of letting me, and I doubt our clients would be very happy if I did. I see exceptions to everything I’m about to say… every single day.

February 16, 2019ZONEZI No commentsBusiness, News

Revenue strategies for boutique hotels

It’s no surprise that millennials now make up the largest share of traveler demographics and are the biggest factor in why independent hoteliers will work to perform better than in previous years. Having a full grasp where and who your business comes from is the first step in building proper revenue management.

Millennials, in general, have remained neutral with their opinions on branded hotels, and prefer seeking out a unique experience to staying loyal to one particular chain. Factors that attract a millennial traveler include urban renewals and adaptive reuse for that one-of-a-kind stay.

Remember that technology also plays an important role in their day-to-day lives, so ensure your Wi-Fi systems have enough bandwidth to meet their demands. This technology is not only required in each guestroom, but also in any large social gathering area that promotes a work/play environment.

Here are some other factors to consider in revenue managing for boutique hotels.

Distribution of rooms
With an established buyer persona, we can now look at your ideal revenue mix.

Direct bookings are by far the most cost-effective business for boutique hotels so it is always the goal to drive business to our own booking channels. Identifying what percent of business you need from group sales, global distribution systems and online travel agencies is important to a successful revenue strategy. Understanding the cost of all of your booking channels allows for you to properly layer in business by evaluating the effective average daily rate and adjusting your available rates accordingly.

Set occupancy thresholds for your hotel as key indicators of when to increase your rates. The further out a guest books a stay, the better deal they should obtain—in most cases. The worst thing you can do is to train your guests to book last minute by reducing rates or making last-minute deals available.

Without the power of a brand sales team and the tools that they provide, your independent hotel’s sales efforts need to ensure that they are utilizing the right channels to be effective.

Identify your hotel’s ideal rooms-to-space ratio to maximize profits on any piece of group business and to ensure your revenue manager and sales team are on the same page.

February 16, 2019ZONEZI No commentsBusiness, News

Asian cities lorded over the Economist Intelligence Unit’s Worldwide Cost of Living report, out last week.

Names from the continent dominated both lists of the costliest and most affordable places to live in the world, per the report’s Cost of Living Index. Five of the world’s top six expensive cities are all in Asia, while cities in the Indian subcontinent make up half of the 10 least costly cities on earth.

Some traditionally expensive alpha cities have become more affordable of late. Due to the post-Brexit depreciation of the sterling, London is now only the 24th most expensive city in the world, while Manchester registered the biggest fall, from number 26 previously to a distant 51, making it cheaper than Beijing and tying it with Bangkok.

London is now a far greater lifestyle bargain than New York City, at ninth place, for the first time in 15 years, and Paris, at eighth place.

To arrive at the results, EIU tracked 400 individual prices across 160 products and services, including clothing, food, transport, home rents, utility bills, private schools, and recreation, in 133 cities around the world.

February 16, 2019ZONEZI No commentsNews

A raft of unprecedented benefits in store for lessees

Thailand is bracing for the passage of the leasehold draft bill that is expected to entice more foreign lessees to the property market, according to the Bangkok Post.

The Council of State is due to vet the leasehold bill after public hearings ended on 16 June. The bill has already received cabinet approval.

Under prevailing laws, foreigners can own condominium units but are prohibited from acquiring land, except in special arrangements with the Board of Investment and the Industrial Estate Authority of Thailand.

Lease rights are also not transferable and cease automatically at the time of the lessee’s death.

February 16, 2019ZONEZI No commentsNews, Real Estate

Developers from across the island hope to achieve both local and national recognition as the finest in their categories

Key members of the Phuket press gathered last night at the Angsara Laguna Phuket for an exclusive media briefing in advance of the 13th annual PropertyGuru Thailand Property Awards 2018.

Addressing the room was Terry Blackburn, founder of the Asia Property Awards, regional awards judge Robert Krupica of Hughes Krupica law firm and Kamolpat Swaengkit, country manager of DD Property.

“In a fast expanding property market like Phuket, developers and investors understand the benefits of quality endorsement by a prestigious awards programme,” said Terry Blackburn, “The PropertyGuru Thailand Property Awards encourage excellence across all aspects of the real estate industry, which is why the number and quality of entries from Phuket and around the country increases every year,” he added.

Robert Krupica described the Phuket market as “vibrant as ever” and gave some insights into how the market has evolved in his nine-year tenure as a Thailand Property Awards judge. “One of the more interesting developments that I’ve seen in the last few years has been the increase from domestic Thai buyers, showing a strong interest in investing in a second home or rental income property in Phuket. This is something we didn’t see 10 years ago as much,” he said.

The Thailand Property Awards, founded in 2006 has grown exponentially in the last 13 years. The first gala dinner hosted 200 guests, while 2018’s event, which will be held in Bangkok on 31 August, is expected to attract upwards of 600 of Thailand’s leading property developers, VIP’s and leading industry figures.

February 16, 2019ZONEZI No commentsNews, Real Estate

Phuket condos primed for small uptick

The Phuket condominium market is expected to rise in line with a recovering economy and the growing population of the island.

Increasing supply and higher selling prices will be the key drivers, while demand is forecast to improve slightly. Local developers and joint ventures will be key players in the market, said property consultant Knight Frank Thailand.

Demand will continue to be driven by international buyers and investors from China, Russia, and Australia. Knight Frank expects a larger portion of South Korean buyers in the following years. Average asking prices per square metre are anticipated to rise in all areas, while increasing demand for luxury condominium units may see prices approaching a new high in 2018, especially for properties located by the sea.

Luxury buyers tend to buy them for their own residence or long-term capital appreciation.

Phuket’s Smart City is also expected to stimulate demand in the city. The initiative aims to transform the province into a “smart economy and smart living community” and establish the city as a hub of digital industry that will attract investors and tourists alike. The project is scheduled to be completed in 2020.

Phuket’s condominium market took a fall in 2017. The total number of units launched last year decreased 29% to 1,736 from 2,478 in 2016. On the demand front, there were 1,147 condos sold in 2017, down 36% year-on-year.

Newly launched supply with a sea view, partial sea view, or no sea view accounted for 44%, 54%, and 2%, respectively. The majority of the developments are in the high-end segment, principally located in Karon, Naiharn, and Bangtao.

Condominium projects launched in 2017 recorded an average take-up rate of 66%, down 6% year-on-year. However, projects with affordable pricing, attractive down payment packages, exceptional amenities, and convenient locations achieved higher sales within weeks of their launch.

The average asking price per square metre for all new condominium projects launched in the Phuket market last year surged to 135,719 baht, up by 2.5% year-on-year.

February 16, 2019ZONEZI No commentsNews, Real Estate

Real estate’s reputation as a valuable investment asset strengthens further in the Thai capital

Bangkok’s property market is going from strength-to-strength, according to DDproperty’s latest Property Index.

The Thai capital has displayed price growth with an eight-point increase from 205 to 213 in the first quarter of 2018. This growth is on the back of an improving economic outlook and an expected increase in Gross Domestic Product (GDP) this year to 4.2 percent (up 0.3 percent y-o-y), and in part due to the rising cost of developing projects in the popular but densely built-up areas in Bangkok.

The Index has jumped by 213 percent in the last three years, fuelled by hot land prices which has meant that affordable residential developments are being pushed further from the city centre, most commonly along mass transit extension lines.

“The sophistication of Bangkok’s property market is more apparent now than ever,” said Kamolpat Swaengkit, Country Manager for DDproperty. “As values continue to move upwards, property’s reputation as a valuable investment asset strengthens further. Developers are therefore taking note and it is no wonder that the year has welcomed joint ventures between local and foreign developers eyeing potential across the city. They have become a lot more selective on the kinds of projects they work on, with the focus on building the ‘right’ property for the location and ensuring it is suited to its target audience. We have seen a real shift in the market with this renewed attention to detail.”

February 16, 2019ZONEZI No commentsNews, Real Estate

The city is sorely lacking in green space per capita

Thai architects are partnering with the government on plans to turn Bangkok and other big urban areas into “public cities for all,” with green spaces that are commensurate with the needs of their inhabitants, The Nation reported.

The Thai Association of Landscape Architects (TALA) announced Wednesday it is pitching the Health Ministry a policy promoting more green, public spaces in the city.

The architects will be working closely with the National Health Commission Office and “brainstorming” with the private sector and civilian stakeholders, according to landscape architect Yossapon Boonsom of TALA.

“We live in a sick city, full of pollution and limited in public spaces, and many urban dwellers are physically ill,” he said.

February 16, 2019ZONEZI No commentsNews