Thai tourism continues to show its resilience, slowly recovering from its most challenging period with the country reopening to fully vaccinated foreigners since Nov 1.
The spotlight remains on Phuket, the first destination to welcome international travellers under its sandbox scheme.
In its 30 years of offering aviation services, Phuket had the potential to attract wealthy tourists flying in aboard private jets, but one obstacle was the lack of a dedicated facility to handle such exclusive transport, said Kachorn Chiaravanont, executive vice-chairman of Siam Land Flying Co, a private jet operator.
In order to drive a tourism recovery, inclusive infrastructure is essential amid intense competition, said Mr Kachorn.
He said Siam Land Flying's investment in a new private jet terminal worth 600 million baht will increase the country's competitiveness in the global arena.
"A dedicated private jet terminal will encourage global tourists with high purchasing power to visit the island and generate more tourism income for the local economy," Mr Kachorn said.
He said high net worth (HNW) individuals who use private jet services normally spend more than 300,000 baht and up to 1 million baht per night on accommodation, as well as 200,000-300,000 baht per day on private yacht rental.
Greg Martin, chief executive officer of Siam Land Flying Co
Thai tourism needs to focus more on the wealthy market, said Mr Kachorn.
Asia Pacific is considered to be the fastest growing region for the HNW sector, with 6.4 million or 0.15% of the total population, according to the "Asia-Pacific and the Global Travel Recovery 2021" report by International Luxury Travel Market Asia-Pacific and Barton.
This segment contributed US$34.4 billion, almost half of the regional outbound expenditure of $72 billion, with emerging markets such as Vietnam, India and the Philippines.
Greg Martin, chief executive officer of Siam Land Flying, said travel is not about volume, but should be about value as Thailand has so much to offer to the HNW segment, thanks to the warmth of the people, the weather, the food and the culture.
Deputy Prime Minister Anutin Charnvirakul, centre left, with various representatives from the public and private sector at the grand opening of Siam Land Private Jet Terminal.
LUXURY COMFORT
The 17 rai allotted for the new terminal and fixed-base operator (FBO) facilities near Phuket airport comprise a private jet terminal covering 1,200 square metres, plus on-site immigration, customs and disease control services as well as VIP lounges.
Mr Martin said the terminal offers privacy and a high level of convenience given the short distance of around 50 metres between the door of the aircraft to a limousine and a fast immigration process.
He said it had to ensure that design and service standards are associated with Thainess to make travellers experience Thai culture at this very special destination.
The terminal provides another 7,000 sq m of hangar space and 12,000 sq m of apron space for parking that can accommodate up to seven Gulfstream G650 and ultra large-sized private jets, including a Boeing Business Jet or Airbus Corporate Jet.
Siam Land Private Jet Terminal, which is set to be fully operating early next year, can accommodate 1,200 flights per year, while serving aircraft maintenance with licensed aircraft engineers.
With regard to sustainability, the terminal, which provides ground handling standards certified by the National Air Transportation Association, also uses fully electric vehicles and ground support equipment to reduce the environmental impact.
Siam Land Private Jet Terminal will be able to accommodate 1,200 flights per year.
SPREADING WINGS
Mr Kachorn said the new terminal will take 6-8 years to break even and its revenue will be the key to support the company's long-term growth.
Once the prototype in Phuket is proven to be a success, the company will look for opportunities to invest in new private jet terminals overseas.
He said demand for private jets has significantly increased as people, especially Thais and those from neighbouring countries, are willing to pay more for convenience and safety.
Siam Land Flying, a subsidiary of the Charoen Pokphand (CP) Group, was established in 1991 as a private flight department for its executives, before expanding into private charters within Southeast Asia under Executive Wings in 1998, followed by an air ambulance service called Medical Wings in 1999.
Medical Wings was recognised as the first Asian operator to achieve two world-class standards on medical transport, namely the Commission on Accreditation of Medical Transport Systems and the European Aero-Medical Institute in 2015 and 2016, respectively.
Since an opportunity for expansion lies ahead, with a current 40% of market share of overall private jet providers in Thailand, the long-term goal for Siam Land Flying is to create recognition among customers about the high level of safety and convenience from its service standards.
Mr Kachorn said even though Siam Land Flying is a very small subsidiary in relation to the whole of the CP Group, it will continue to grow and add a more meaningful contribution to the group in the future.
Interior design of VIP lounges at Siam Land Private Jet Terminal.
PHUKET FOR ALL
The private jet terminal offers a promising outlook for tourism in Phuket to balance both high-end and other segments with the readiness of infrastructure, said Deputy Prime Minister Anutin Charnvirakul.
The government selected Phuket as the pilot destination for sandbox programme on July 1, due to its position as a preferred destination and a leader in medical tourism.
"Once the virus situation improves, Thailand will stay at the frontline to recover due to growing demand from tourists, business travellers and investors, according to various sources of data from economic, public health and tourism aspects," Mr Anutin said.
The new private jet terminal will help enable the provision of VIP treatment for high-end guests and would appeal to HNW individuals as a new trend that will prioritise the value aspect of tourism which will become more prominent post-pandemic, said William Heinecke, founder and chairman of Minor International.
Siam Land Private Jet Terminal in Phuket is to be fully operational in early 2022.
PEARL OF THE ANDAMAN
Yachting is also considered to be one of very few segments that remain unfazed by the pandemic as tourists opt for private forms of transport for greater safety.
Vrit Yongsakul, group managing director of Boat Lagoon Yachting, said Phuket would be upgraded to the next level with the opening of the new private jet terminal which would complement other luxury tourism products such as yachting and villas as well as serving to represent Phuket well as a leading high-end destination.
He said there is more room for luxury tourism to grow in Phuket because travellers always enjoy the sea, sun and sand there.
However, operators have to closely follow the virus situation and brace for uncertainties.
Mr Kachorn reiterated that Thai tourism needs to focus more on the wealthy market.
Bhummikitti Ruktaengam, president of the Phuket Tourist Association, said affluent tourists in Phuket, both in the international and domestic market, have seen substantial growth during the five years prior to the pandemic.
Enquiries from arrivals via private jet still rose, even during the early phase of the reopening that required tourists to stay in Phuket for at least 14 days.
He said the new facility to serve travel demand with exclusive services would play a vital role in supporting the overall industry.
"Phuket has to offer various types of tourism products to cover all lifestyles and welcome tourists in every segment, whether they be families, solo travellers or even weddings," said Mr Bhummikitti.
The private jet terminal can accommodate 1,200 flights per year.