New Khao Lak Hotel Report From C9 Hotelworks

Increasing hotel supply in Khao Lak with stable tourism growth reflects a destination market entering a new cycle. While the upcoming second gateway Greater Phuket airport is expected to push the destination to diversify offering in a more mature tourism scenario. 

Khao Lak, located in Thailand’s Phang Nga province, differentiates itself from Phuket’s mass tourism as it is dominated by Western travelers. As of year-to-date November 2019, the province recorded a total of 970,692 guest arrivals at accommodation establishments with most of the hotels concentrated in Khao Lak. Tourism demand remained stable last year with a slight 0.7% growth y-o-y as of YTD Nov 2019.

The existing hotel supply in Khao Lak has 154 properties, representing 10,606 keys. Half of the developments are focused on the beach areas located at the center of Khao Lak, namely Bang Niang (20%), Nang Thong (23%) and Khuk Kak (7%).

The hotel market continues to be dominated by the wholesale segment with long-haul travelers. Thomas Cook was traditionally one of the largest wholesalers in the market before the company ceased trading in Q3 last year. The impact is expected to be short-term with new bookings redirected through other wholesalers or distribution channels.

Aside from stronger destination awareness contributed by existing and upcoming international branded hotels, the Andaman International Airport which is under development north of Phuket is expected to drive a new market cycle for Khao Lak.

To download and read the Phang Nga and Khao Lak Hotel Market Report CLICK