• Struggling for survival |
HELP AND CLEAN-UP Tide turns on tourist demographics in Khao Lak Wealthier foreigners remain uneasy but young, adventurous types represent a promising market
Khao Lak, Phangnga - Perched on a hill, Barry and Alison Whitley take turns surveying tsunami-ravaged Khao Lak through binoculars. After a while, they walk back to their rented jeep, both pensive. Tears have welled up in Mrs Whitley's eyes. She removes her sunglasses to wipe them away. But, she tells the Bangkok Post, it's not the present appearance of the resort that has moved her to tears. What's shocked her is the difference between the two Khao Laks: pre- and post-tsunami. And though Khao Lak is anything but dead as a resort, the difference between the way it was a year ago and the way it is now is just as big, and felt just as keenly, by all those in the local tourist business. International tourists have returned, albeit in lesser numbers than last year, but the most remarkable difference is in the profile of the visitors. The well-heeled package tourists who patronised the upscale hotels have largely been replaced by long-stay budget travellers. This puts Khao Lak in stark contrast to Phuket and Krabi, where it is now pretty much business as usual.
From a commercial point of view, the main reason Khao Lak couldn't be restored to its pre-tsunami condition as quickly as Phuket was the limited number of hotel rooms. Because of this, and producing a knock-on effect, was the fact international tour operators have not yet resumed selling tour packages to Khao Lak. Overall occupancy rates are only about 20%, compared to more than 70% in last year's high season, says Praprut Khorpetch, vice-president of the Phangnga Tourist Association. But the picture isn't uniform across the board. A few hotels have occupancy rates above 80%. Among these few exceptions are the 26-room Khao Lak Tony Lodge, the luxury Le Méridien Khao Lak Beach and Spa Resort, and The Sarojin, which claims to be the only five-star hotel in Phangnga. Last year Khao Lak, and the Andamans were seen as the epitome of a safe and luxurious destination, and drew the international jet set. But times have changed, and the new clientele is made up of the more adventurous, budget travellers, says Thalermkiat Limsakul, managing director of Khao Lak Tony Lodge on Bangniang Beach. ''Wealthy tourists will go to places where they can be 100% confident in the destination's security. If they're uncertain in any way about Khao Lak, and to what extent it's been restored, they will go to other beach destinations instead.'' His judgment is reflected in the comments of the Whitleys from England, who are on their third visit to Khao Lak area and their tenth to Thailand. The Whitleys teach English to international students at a language school in London. ''We wanted to return to the resort where we used to stay in Khao Lak, but couldn't get updated information through websites on which hotels and resorts were still operational, so we got a place in Phangnga Bay instead,'' says Barry. Mr Thalermkiat says the new clientele has taken Khao Lak back to its roots. ''Now, it's similar to the time when Khao Lak had just become a popular destination for international tourists. ''More than five years ago, it was a place for divers, young tourists and long-stay backpackers, especially Germans.'' His hotel with 26 standard rooms, has been refurbished with young adventurers in mind. And since it's among the limited number of budget accommodations available, it's fully booked throughout the high season. Mr Thalermkiat has a succinct explanation for the success. ''We offer value-for-money services,'' he says, noting that peak-season rates are still only 1,500 baht a night. For Mr Thalermkiat, who also sells construction materials, the current climate is a golden opportunity to get the drop on his competitors. He's busy expanding while others are sitting on the fence. Near the 16-million-baht Tony Lodge building, he's constructing a second 35-room building for 20 million baht. But Mr Thalermkiat is no stranger to risk. Tony Lodge opened only a month before the tsunami. But he's encouraged enough by future prospects that he's planning a third small beachfront hotel on Bangniang Beach with 30 rooms at a budget of 40 million baht. It's expected to be completed by the beginning of the 2006 high season. In spite of the general downturn, some luxury hotels in Khao Lak have been doing exceptionally well this high season. The reason for this clear: they have their own marketing networks abroad. Kate Kemp, the owner and executive director of the $10-million Sarojin, says her marketing strategy is quite simple. She conducts promotional campaigns restricted to her target markets. Her company has appointed public relations agencies to promote The Sarojin in Britain and other European countries. The hotel has featured in several international tourism magazines. ''We do our marketing through travel agents, tour operators, internet agents, our own website and also offer special promotional packages.'' As a result, the occupancy rate since the hotel's soft opening on Oct 1 has between 50% and 60%. ''During the Christmas and New Year period, our occupancy rate will be higher than 80%,'' says Mrs Kemp. The Sarojin is operated by Hong Kong-based Whitekaps Resort Co, in which Mrs Kemp and her husband Andrew hold a 50% stake. The Kemps are originally from the United Kingdom. Now, Kate and Andrew Kemp live in Phuket, together with their children. The Sarojin was originally set to open on Jan 10 this year, but the tsunami devastated the site and it took eight months to rebuild, doubling the planned investment budget to $10 million. The Sarojin, with 56 boutique rooms, is located on 25 rai in the Cape Pakarang area of Takua Pa. Mrs Kemp says it's a prime location with easy access to a host of sights of outstanding natural beauty, ranging from Khao Lak's lustrous beaches to Similan Island and Khao Sok National Park. The Sarojin is the first property of Whitekaps in Thailand. Mrs Kemp says the company is planning to develop two more luxurious hotels, one in Bangkok and another at a different beach resort. The Sarojin's room rates this high season range between 7,500 and 23,800 baht. Whether they pay 1,500 baht or 15,000 baht a night, visitors will be welcome at Khao Lak. Which brings us back to the Whitleys. They are both optimistic and cautious about the community's future. ''We drove here to see where we can stay next time we come,'' said Mrs Whitley. ''Besides, we want to explore the possibility to move to Thailand in the near future. We just hope things won't develop to be too commercial around here.'' |
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