Resort Demand Not Just About The Beach

Over the past decade Southeast Asia resort destinations have seen a strong shift away from their ‘old school’ legacy markets.

What was once a defined beach holiday, burning under a tropical sun for days on end has decidedly changed.

By the first quarter of 2017, China will eclipse Australia as the number one international inbound market to Bali.

In Phuket the change has already come and despite a large influx of snowbirds, Chinacation tops the market trend.

A few days ago I was reading in TTG Asia how Vietnam’s emerging Phu Quoc was facing challenges in sustainable demand.

In what is being touted as Vietnam’s answer to Bali and Phuket, with nearly a dozen international hotels in the pipeline, the fact is that feedback from Asian markets is that the beach destination does not offer enough diversity to attract regional visitors.

Most impactful is the fact that international flights have been unsuccessful and as we know airlift is everything.

Certainly the mantra of build it and they will come is clear but what hotel developers and tourism bodies don’t quite get is how visitor behavior is changing.

Today it’s all about retail, attractions, local experience and getting out of the box. Destination resorts are failing to understand the new traveler and in most cases they are walking right out the front door and spending their money at the nearest retail complex.

Times are changing, and resort markets have to understand the disruption that is clearly written on the wall.