The Eastern Economic Corridor (EEC) project and the expansion of U-tapao airport are set to create a hive of activity in Pattaya and the Eastern Seaboard, prompting hoteliers to revamp as several new players open their doors in the coming years.
Somsak Tanruegnsri, general manager of Avani Pattaya Resort and Spa, says the EEC megaproject and further expansion of U-tapao airport in Rayong province will help strengthen tourism and the hotel business.
"The airport will help immensely because of its proximity to Pattaya versus Suvarnabhumi airport," he says. "The EEC's five-year plan will enhance accessibility to Pattaya and the surrounding region, creating a major economic and leisure zone."
Facelift for Pattaya hotels
Boon: EEC tourist influx coming
With a mood of optimism setting in, developers are gearing up for a raft of projects, including Renaissance Hotel, a new building at Amari, Centre Point and Terminal 21, as well as small, independent hotels. Projects opened in Pattaya in recent years include Kaan Show, Ramayana and Cartoon Network Waterpark.
Neoh Kean Boon, general Manager of Dusit Thani Pattaya, says the opening of U-tapao airport in 2016 increased air connectivity between Pattaya and major cities both at home and abroad, including Malaysia and southern China.
Nevertheless, a second runway is set to be built at the airport next year to accommodate bigger aircraft, enabling it to link to a wider array of destinations.
"When the EEC takes shape, I do believe that more business travellers will flood into the Eastern Seaboard, while airlines will carry more tourists into Pattaya," Mr Boon says.
The hotel and tourism business in Pattaya and the Eastern Seaboard is expected to grow rapidly in the coming years, judging by forward bookings made for 2018, with more visitors set to arrive from emerging markets, particularly China and India. The Korean and Russian markets are also bouncing back.
In order to capitalise on the emergence of economic and leisure zones in the Eastern Seaboard, Avani Pattaya Resort and Spa completed a massive revamp in June, which required a sizeable price tag of more than 170 million baht. The hotel has rebranded and repositioned itself under the Avani banner after ending its management contract with Marriott last year.
Mr Somsak says the hotel is targeting four segments: corporate, leisure, business incentive and local residents.
"The growth of the automotive industry with factories going up in and around Rayong province is very important to us," he says. "U-tapao airport is expanding in this area. This potentially could produce additional businesses and we also have regular sales blitzes in the area."
Mr Somsak says the tourism business in Pattaya will return to normal around early November and spiral in an upward trend thereafter, due to the government's announcement regarding its EEC plans for the Eastern Seaboard.
A view of Avani Pattaya Resort and Spa, which completed a massive revamp in June at a cost of more than 170 million baht. The brand is part of Minor Hotel Group.
Renovation efforts at hotels entail extensive room upgrades, including huge TVs, new beds and bedding, the addition of pantries, food/drink outlets and other public areas, refurbished lobbies, remade landscapes and the relocation of Benihana Japanese steakhouse from the second floor of the Royal Garden Plaza to the first floor, which will overlook the beach.
The main targets for the upgraded facilities include the meetings, incentives, conventions and exhibitions (Mice) market; the corporate sector, including automotive, oil and gas companies; and the local leisure market.
Regarding modern and connected tourists, Mr Somsak says the main focus is to capitalise on the use of social media as a selling tool, in line with the mobile-first trend.
The Avani brand, part of Minor Hotel Group, has been created to serve guests who are of a millennial mindset, offering creative amenities, organic food, seamless connectivity, quiet meeting zones, entertainment hubs and lifestyle wellness facilities, including for muay Thai.
For Dusit Thani Pattaya, Mr Boon says it has completed the first phase of its renovations this year, covering 80 rooms with a budget of 80 million baht.
The second phase, covering another 80 rooms and a kindergarten, will cost 90 million baht.
The last phase, entailing additional rooms and meeting and convention facilities, will be completed in 2019.
Currently, average room rates at Dusit Thani Pattaya are 3,200-3,300 baht. Those rates will be increased by 500-1,000 baht per night after the renovations.
The market segments for Dusit Thani Pattaya are Mice (31%), wholesale (23%), corporate (10%), leisure (6-7%) and government (5%), with others accounting for the rest.
By nationality, Thais remain the biggest customer segment at 34%, followed by visitors from India (16%), China (15%), South Korea (9.5%), Hong Kong (8.5%), Japan (5%), Russia (2.6%) and other markets.
Mr Boon says 20-22% of guests are repeat visitors, while more young travellers from India and China are also being received.
Holiday Inn in Rayong
Earlier this month, the Nokhong family, which serves as a local real estate developer in Rayong province, opened a 2.5-billion-baht hotel located next to the family's Passione Shopping Destination, formally known as Laemthong Rayong Shopping Centre.
Somsak: Pattaya arrivals set to spiral
The hotel, Holiday Inn and Suites Rayong City Centre, offers 288 rooms and is targeted to cash in on the coming economic boom in the EEC.
The Nokhong family ran Laemthong Rayong shopping centre for over 20 years before expanding into the hotel business.
Targeted customers are Germans, Japanese, Korean and Chinese, as well as Thai businessmen working in Map Ta Phut Industrial Estate and Eastern Seaboard Industrial Estate.
According to the hotel, 70% of clients are forecast to be foreigners. An average occupancy rate of 65% a month is expected initially, increasing to 80% a year over the next five years.
The family expects revenue from its hotels and shopping centres to reach 1.2 billion baht in 2018.
The group also plans to build an office building for rent to cope with the anticipated economic growth.
The additional investment budget for that project is estimated at 3 billion baht.
Push for the Eastern Seaboard
In 2013, Pattaya recorded a peak period for the tourism industry with a total of 12 million foreign visitors. That number dropped to below 10 million last year but saw a rebound this year from Russian, Indian, European and South Korean visitors. China has been the largest source market for several years.
The Tourism and Sports Ministry and Tourism Authority of Thailand (TAT) are further ramping up efforts to promote the Eastern Seaboard.
Attractions include Koh Si Chang in Chon Buri province, which is being marketed as a new travel destination. Pattaya has been rebranded as a sports and family town, while U-tapao airport is scheduled to host Air Race 1 World Cup next month.
For 2018, the TAT has announced it will organise its Thailand Travel Mart plus Amazing Gateway to the Greater Mekong Subregion (TTM+) event in Pattaya. The event is aimed at strengthening tourism in the Eastern Seaboard.