0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Totalhotels

Licensedhotels

Pendingapproval

Licenseapproved

Notapplied

Licensedvs.UnlicensedHotels

Hotels

PhuketHotelMarketUpdate

Mid-YearEditionJuly2017

Trends ForwardOutlook•  FutureGovernmentfundingforinfrastructureinvestmentforPhuketProvincenowtotalsUSD2billion.

•  Overseaspassengerarrivalsincreasedby9%y-o-y,withadditional143scheduledTlightsaddedbetweenMarch–October2017.

•  InTluxofbrandedandbrand-afTiliatedpropertiesstandsat77%oftotalpipelinekeyswith36%havingbrandedhotelresidences.

•  CompletionofupgradeofPhuketAirportdomesticterminalisscheduledforDecember2017justintimeforpeaktouristseason.

•  Designof22.4-kilometerSakoo-KohKeawexpresswayisexpectedtobeTinalizedbyAugustwithanEIAsubmissionin2018.

•  MinistryofNaturalResourcesandEnvironmentisplanningtosimplifytheprocessofEIA/IEEapprovalforhotellicensingapplications.

BillBarnett,ManagingDirector,C9Hotelworks

Source:Phuket’sProvincialAdministrationOfTice

Phuketunlicensedaccommodationcrackdownresultsin1,007hotelsapplyingforlicenseGovernmentfocusonthedestinationincludesinvestmentin12lanecrossislandexpresswayandlightrailproject

“Phuket’sProvincialgovernmenthasundertakenalarge-scaleinitiativetotackletheproliferationofunlicensedhotels.Sincethecampaignstarted,atotalof1,007hotelshaveappliedforofTicialoperatinglicenseswithjustsixapprovedtodate.ThemainchallengesfortheprocessarethestrictregulationsassociatedwiththeBuildingControlandHotelActs.Asaresultofthesemandatestheprovinceisconsideringreviewingtherequirementstosupporttheconversionprocess.ThegovernmentisaddressingtrafTicmanagementissuesbyinitiatingthedevelopmentofa12-laneSakoo-KohKaewexpresswayprojectwhichwillaccommodatealightrailcomponent.ThisprocessisdependentonanenvironmentalstudyandpublicopinionasitwillrequireasigniTicantacquisitionofprivateland.ConstructionisexpectedtotakeTiveyears,shouldEIAapprovalbeobtainedin2018.

Phuket’sgatewayinternationalairportiscontinuingtoseerisingtrafTicdemandwithtotalpassengerarrivalsexperiencingy-o-ygrowthof10%intheTirstTivemonthsoftheyear.Theadditionofalightrailnetworkwithairportaccesswillimproveoverallpublictransportandslowthepaceofcongestion.Overtime,thelimitationofasingleairportrunwaylooms.”

1,724

429

1,001

6

288

TOURISMAirlineIndicators•  PhuketInternationalAirporthostedatotalof3,568,811inboundpassengersbetweenJanuarytoMay2017ofwhich46%weredomesticarrivalsand54%wereinternationalarrivals.

Passengerand*lightarrivalsshowedsimilargrowthof10%and9%,respectively,during*irst5monthsof2017

C9PhuketHotelMarketUpdate:July2017

Source:PhuketInternationalAirportandC9HotelworksMarketResearch

Source:PhuketAirportImmigrationandC9HotelworksMarketResearch

Chinashowedy-o-ygrowthof8%whileRussiasharplyroseby17%

NumberofPassengers

PhuketAirportPassenger&FlightArrivals

NumberofPassengers

Top5KeyInternationalGeographicSourceMarkets

2

NumberofFlights

KeyGeographicSourceMarketShare

Top5AsianMarkets Top5EuropeanMarkets

0

200,000

400,000

600,000

800,000

MainlandChina

Russia SouthKorea Australia Germany

January-May2016 January-May2017

0

1,000

2,000

3,000

4,000

5,000

6,000

0100,000200,000300,000400,000500,000600,000700,000800,000900,000

Jan Feb Mar Apr May

Arrivals2016 Arrivals2017 Flights2016 Flights2017

66%9%

5%4%3%

13%

MainlandChina

Korea

Malaysia

Thailand

Singapore

Others

41%

11%10%9%

8%

21%

Russia

Germany

UnitedKingkom

France

Sweden

Others

HotelSupply

HotelPerformanceComparison

3C9PhuketHotelMarketUpdate:July2017

Source:C9HotelworksMarketResearch*Additionalkeysforexistinghotels

Source:STR

Year-on-yearmarket-wideADR’sgrew3.6%duringthe*irstfourmonthsof2017

HOTELOVERVIEW

InTHB %

75

80

85

90

0

2,000

4,000

6,000

8,000

Jan-Apr2015 Jan-Apr2016 Jan-Apr2017

ADR RevPAR Occupancy

•  Thereare33hotelsor5,738keysintheisland’spipeline.

HotelName Location Keys OpeningDateSheratonPhuketGrandBayResort&Residences AoPor 269 Q42019CassiaPhuket(Phase2) Bangtao *105 Q22018X2VibePhuketBangtaoResidence Bangtao 85 Q12018YoskarnKallistePhuketWellnessResort&Spa CapePanwa 40 TBAAnayaraRetreatPanwa CapePanwa 6 Dec2017AnayaraLuxxPanwa CapePanwa 38 Q12019CourtyardbyMarriottPhuket ChalongBay 277 Q42019JWMarriottPhuketResort&Spa ChalongBay 189 Q42019NokuRoxyPhuket ChalongBay 91 Q32019SheratonPhuketKalimBeachResort Kalim 230 TBABestWesternPremierHimalaiResort Kamala 402 Q32019InterContinentalPhuketResort Kamala 200 Q42019TwinpalmsResidencesMontAzure Kamala 75 Q42018The137PillarsEstatePhuket Kata 66 Q42019TheHermitageResort Kata 78 Dec2017OzoKataPhuket Kata 255 Q42018KempinskiHotelPhuket KohSiray 85 TBAParkHyattPhuket KohSiray 85 TBAMaiKhaoPalmBeachResort MaiKhao 225 Nov2017MovenpickResortMaiKhaoPhuket MaiKhao *136 Q22018AnantaraVacationClubMaiKhao MaiKhao *98 Dec2018RoyalLeeTheTerminal NaiYang 320 TBAHiltonPhuketPatongResort Patong 300 Q12020BoutiqueSai3PatongHotel Patong 198 Aug2017HotelIndigoPhuket Patong 180 Q22018AbsoluteTwinSands(Phase3) Patong *89 Mar2018FourPointsbySheratonPatongBeach Patong 560 Jan2020BeyondHotelatPatong Patong 160 Aug2017ZenseanaHotelPatong Patong 166 TBARamadaPlazaChaoFaPhuket PhuketCity 257 Q42018BestWesternTheBeachfront Rawai 192 Mar2018DusitD2PhuketAria Surin 210 Q22020RosewoodPhuket TriTrang 71 Q42017

startbuildingaccordingtothedesign

informmunicipalityonceconstructioniscomplete

inspectionbymunicipalityengineertoissuebuildingPermitA.6

submitPermitA.6andEIA/IEEreporttodistrictofTice

districtofTicepre-approvesandsendstogovernor’sofTicetoissueahotellicense

submitapprovedEIA/IEEreporttomunicipality

inspectionbymunicipalityengineertoseeifrenovationisneeded,andreceivebuildingPermitA.6

askforpermissionfromprovincialofTiceofpublicworksandcountry&townplanning,andpayaTine

submitEIA/IEE,buildingpermitandpermissiondocumenttodistrictofTice

districtofTicepre-approvesandsendstogovernor’sofTicetoissueahotellicense

HotelLicenseApplicationProcessNewHotelsvs.UnlicensedHotels

studyzoningregulations

developdesignofthehotel

EIA/IEEreportdraftedbyaccreditedprofessional

submitEIA/IEEreporttoprovincialofTiceofnaturalresourcesandenvironment

submitapprovedEIA/IEEreporttomunicipality

issuanceofbuildingPermitA.1

hotelswithoperatinglicense

429AsofJune2017

hotelsappliedforalicense

1,007In2016

payaYineaspenaltytomunicipality

rectifythehoteldesignifnecessary

withreviseddesign,getanaccreditedprofessionaltodraftanEIA/IEEreport

submitEIA/IEEreporttoprovincialofTiceofnaturalresourcesandenvironment

submitapplicationtomunicipalityforinspectionandaskthemtoissueacertiYicate

reviseEIA/IEEreportaccordinglytothecomments

NewHotels Unlicensed

Hotels

©www.C9Hotelworks.com Source:ThalangDistrictOfTice,DepartmentofPublicWorksandTown&CountryPlanning,Phuket’sProvincialAdministrationOfTiceandC9HotelworksMarketResearch

hotelsweregivenalicense

6In2017