Thailand’s ongoing political stalemate and the paralysing ‘Bangkok Shutdown’ planned for Monday, 13 January 2014, continue to make global headlines this week. The effects are already being felt by the economy, especially in the tourism sector. In January alone, MCOT estimates that the country may lose 400,000 foreign visitors, or roughly THB 18 billion in revenue. Since late last year, the number of tourists has dropped by roughly 25 to 30 percent, mainly in Bangkok and its nearby resort cities of Pattaya, Hua Hin and Cha-am.
In the property sector, the effects of the political turmoil are being felt more acutely in some segments, such as the condominium market in Hua Hin, where (mostly Thai) buyers are hesitant to purchase property amidst times of political uncertainty. Also, an influx in the supply of condos in Hua Hin over the past two of years has outstripped demand, making the market even more stagnant.
This week, large-scale developer Sansiri Plc announced plans to revise its 2014 business plan, scaling down sales activities and new project launches in the country’s major cities. The developer cited economic slowdown, diminished consumer purchasing power and confidence, and political uncertainty as reasons behind the changes.
Not all the news reflected an atmosphere of doom and gloom. In Pattaya, several new developments took place in the real estate market. Locally based property developer Tulip Group announced the start of construction for its large-scale and luxury Centara Grand Residence Pattaya, having recently received its Environmental Impact Assessment (EIA) approval. The project is scheduled for completion in 2016; it will consist of three towers, including two residential buildings and a five star Centara Grand Jomtien Hotel.
In addition, real estate developer Kingdom Property announced the awaited name of its latest luxury project on Pattaya’s Wong-Amat Beach, Mustique, reflecting the exclusivity and privacy of the tropical island bearing the same name. A 50-storey tower, Mustique features sea views from every unit and design by the celebrated architecture firm SODA.
In Phuket, Centara Hotels and Resorts has several ongoing projects, including the rebranding of The Blue Marine Resort & Spa Phuket, which Centara began managing on 5 January 2014; and the opening of Centara Bangtao Resort Phuket, a new-build project that is currently in the design and planning stages, in 2016.
In a Phuket Gazette article, a Centara executive expressed the sentiment that the hospitality landscape in Phuket is shifting in terms of its traditional customer base. Its mature markets are starting to move south to other locations, such as Khao Lak, Krabi and Koh Lanta; at present, rooms are increasingly being occupied with the fast growing newer markets from China and Russia.