ANDAMAN SEA: PERFORMANCE AND INTELLIGENCE
Resilient Phuket lays sound foundations for strategic growth

Many hail 2004 as Phuket's "Golden Year".


The island posted 4. 7 million visitors and was clearly on a roll before the year-end tsunami devastated lives and the island's tourism fortunes.

The resilience of Phuket's residents and governing bodies, fuelled by returning tourism arrivals over the past 24 months, has allowed the island to recover and gather momentum toward a bright future.

Phuket International Airport's (PIA) first quarter arrivals in 2007 came in 10% higher than 2006, and by May this year, the number had reached 2. 5 million.

International airlines are scrambling to gain more slots into PIA, and heavy load factors on these new flights – along with increased frequencies from domestic low-cost carriers – see PIA as a key gateway to the Andaman area.

Increased capacity into PIA would continue to feed global demand for this region of Thailand.

"This year we should hit at least 4. 7 million visitors, the record number posted in 2004," said TAT southern region IV director Suwalai Pinpradup.

More flights and a surge in cruise tourism is being credited as the driving force behind the growth.

Southeast Asia remains the key source market, but the Thai Hotels Association (THA) southern region cautions that arrivals have yet to reach pre-tsunami levels.

The THA cites the non-return of direct flights from Japan and the southern unrest as factors inhibiting greater expansion.

Chinese and Taiwanese numbers are also weak.

On the other hand, Ms Suwalai noted that TUI Nordic contributed 75,000 Scandinavian arrivals last year, and expects 100,000 in 2007.

THE NORTH
Chiang Mai turns to business events

Chiang Mai has long been the poor cousin of the booming tourism centres of Phuket and Pattaya, but it is increasingly emerging as a force to be reckoned with as it positions itself as a centre for business events.

Blessed with the unique Lanna cultural heritage, renowned service standards and natural mountainous surroundings, it is harnessing these qualities with a host of new five-star hotels that will go a long way to providing the hardware that has been lacking to date.

The 391-room Le Meridien Chiang Mai, featuring a 1,614-sqm ballroom, and the 281-room Shangri-La Hotel Chiang Mai, with a 1,400-sqm ballroom, will both open next year.

Progress has not been without its disappointments with the on again, off again funding tap for the Chiang Mai International Exhibition and Convention Center's construction.

There has been, however, an overall positive momentum since 2006, which delivered blockbuster results after years of lacklustre growth.

Much can be credited to the Royal Flora Ratchaphruek, an event that not only provided a welcome shot in the arm but also really started to put the destination on the map and in the minds of tourism and events planners.

According to the Tourism Authority of Thailand (TAT), Chiang Mai arrival figures soared 37.5% from under 4 million in 2005 to 5.5 million last year. Chiang Rai jumped 16% from 1.15 million to 1.33 million and Mae Hong Son moved ahead 11.6% to 367,869.

To continue the momentum into this year's high season, the TAT has shifted some of its focus to smaller trade and consumer events such as September's Amazing North Fair, which promoted new destinations, attractions and activities under four themes.

GULF OF THAILAND
Destinations need to overcome air access restrictions

Koh Samui has enjoyed tremendous growth over the past decade, as it has emerged from being a backpacker destination into one of the most soughtafter boutique tourism experiences in the region.

In 2004 the island experienced over 10% growth on the previous year, only to dip slightly to 8% in 2005 before alarm bells started ringing in 2006 when arrivals grew only 1.5%.

The destination seems to have reached a crossroads, with air access as the principal reason for inhibiting further growth.

Aviation Department director general Chaisak Angsuwan said the Bangkok Airwaysowned Samui Airport can accommodate more flights and Airbus A319 traffic, but the airfield is restricted to 34 flights a day.

Additional traffic depends on the outcome of an environmental impact assessment.

Until the results are in, Bangkok Airways is looking to increase capacity by switching to its new 144-seat A319s.

Thai Airways International, Thai AirAsia and One-Two-Go have turned to the mainland Surat Thani Airport and formed alliances with ferry operators to shuttle passengers to Samui.

Nok Air also wants to launch flights to Surat Thani, but the airport is on a secondary route, limited to 300,000 passengers a year.

Mr Chaisak said the new government will probably give Nok Air the go ahead in 2008.

Air access is also an issue for Hua Hin, as only fledgling niche carrier Siam General Aviation offers three daily shuttle flights from Bangkok on board its 12-seat Cessna Grand Caravan.

And while the average annual growth in Hua Hin arrivals since 1997 has been 6.5%, last year the level stagnated at 1.8% at 2.32 million visitors, of which 455,444 were foreigners.

PATTAYA
Suvarnabhumi Airport boosts Pattaya's fortunes

Pattaya posted 6. 1 million arrivals last year, up from 5. 3 million in 2005 according to the Tourism Authority of Thailand, and the opening of Suvarnabhumi Airport – a 90-minute drive away – is expected to propel this figure closer to 8 million this year as tourists bypass Bangkok for the resort town.

The city continues to forge its position as a popular destination, with the private and public sectors combining to fine tune its image.

There is no doubt Pattaya enjoys a colourful reputation, but there is massive investment coming into the destination from major international hotel companies and property developers that should secure its future.

Starwood's Sheraton brand has opened there already with a Le Meridien to come.

The Holiday Inn and InterContinental brands will be there by the end of next year, while home-grown brands Amari and Centara are expanding their room portfolios significantly.

But it is not only hotels that are bringing prosperity to the city.

International property developers have been constructing ultra-modern condominium projects on prime locations in the city, further enhancing its tourism appeal as this sector allows for long-stay holidays in the region.

One such developer is Raimon Land who has the Northpoint development on Wong Amat Beach.

Raimon Land chief executive officer, Nigel Cornick, said he expected more development in Pattaya to drive its image away from the traditional nightlife and questionable goods sold at street markets.

"Of the total number of visitors to Pattaya, around 30% are 'premium' tourists staying in fourand five-star hotels," he said.

EMERGING DESTINATIONS
Numerous new destinations point to healthy tourism future

Thailand's potential as a world-leading tourism centre appears increasingly assured as it ramps up its destination offerings by adding numerous locations to the tried and tested roster of Bangkok, Phuket, Koh Samui and Chiang Mai.

The cultural and geographic variety of Thailand is an advantage that the private and public sectors are beginning to leverage for the benefit of Thailand's tourism industry.

"Thailand should be able to market more than 10, and perhaps 20, destinations," said Thai Airways International director – Thailand, Indochina and Myanmar, Pichai Chunganuwad.

In the Andaman Sea, Lanta Island is enticing high-end guests, and the launch of Destination Air Shuttle, Thailand's only seaplane service, can directly deliver them after a 30-minute flight from their base near Phuket International Airport.

Another new hotspot is Racha Island off the southern tip of Phuket, with The Racha's 70 "green" villas and accommodation in a converted lighthouse.

Closer to Bangkok sits the burgeoning Chang Island with ecotourism activities, including sky trekking, and a variety of top-end resorts.

In the north, Siam General Aviation kicked off its daily Chiang Mai-Pai service on 1 February using a 12-seat Cessna Caravan.

The 20-minute flight bypasses the long drive on tight, twisting roads to the off-the-beaten-track destination.

Pai is a small, picturesque town in the forested highlands, and offers quiet nature retreats and a base for trekking.