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Michael Ayling: confident about growth on all fronts

Laguna Phuket Rolls Out Lucky Seven for Vietnam

Wednesday, March 12, 2008
SEVEN just might be Laguna Phuket's new lucky number. An innovative boutique-style seventh resort within Laguna Phuket, offering pools aplenty, will be open for the high season after next.

And lifting off as soon as April 2008 will be Laguna Vietnam, where seven more resorts, near the coastal town of Da Nang, will form part of a new sanctuary destination modelled on the Phuket success.

It's a busy time for managing director Michael Ayling and a host of planners and designers within the Laguna empire.

As ever, Ayling is outspoken about a range of Phuket issues, and his forecast for the island is engagingly bright.

''Phuket is a hot destination at the moment, not just in weather terms,'' he says, his face brown after playing cricket the previous day.

Ayling's sunny outlook, as well as embracing the seventh resort and Laguna Vietnam, also takes in an array of property packages that begin with the addition of stylish pool villas among 100 new rooms on the way at Dusit Thani Phuket.

As well as the rejuvenation of Laguna's original resort, there are the spectacular skypool villas that will soon be part of the new Angsana Resort, which, with swimming pools at every turn and level, sounds a little like a water precinct.

Add the continuing rollout of resorts by Banyan Tree in once-remote exotic locations, and you have a complete picture of Laguna Phuket celebrating its 21st year.

''Record occupancy and revenue,'' Ayling tells Phuketwan.''2007 generally was a record year. We are expecting it to be even better in 2008.

''Bangkok's back, which is good, and I'm hopeful, world economy aside, that the MICE and the group business will be, too. We've had a lot of low-season interest, and bookings.''

He adds that the critical thing is direct flights. The Europeans tend to stay for eight or 10 days days, so for them, direct flights aren't quite so important.

''But from Japan and Hong Kong, if people can't get direct to Phuket for three or four-day breaks, they don't come,'' Ayling says.

''We've been told Thai Airways are going to be flying from July from Japan, potentially from Seoul as well.

''The high seasons are pretty much looking after themselves. The opportunities are with the low seasons.''

The young MD, who succeeded James Batt two years ago, practices what he preaches and lives with his wife and young son in a Laguna Residence, having upgraded recently from a Town House.

Laguna continues to open new phases at Laguna Village, the major property development outside the branded resort sanctuary.

As well as being the island's largest private employer, with more rooms available than any other resort business, Laguna is also the island's largest high-end property developer.

Ayling believes the island still has a long way to go before development is complete.

''One person's development is another person's infrastructure,'' he says. ''If people come to Phuket for a lazy tropical island holiday, they may be the ones who are going to say it's over-developed.

''But if you are coming here for Western comforts, then it's actually the Western world mixed with Thai culture, as well as the natural benefits Phuket has to offer.

''Over-developed is a word that gets bandied around too much on Phuket.

''Two years ago, we took helicopters up and one thing that struck me from the air was the lack of development on the north of the island.

''The south is certainly well-developed. If we have responsible development in the north, then it won't necessarily equate to overdevelopment.''

The same question of balance applies within Laguna Phuket. As the entire sanctuary was created from the environmental wreckage of a spent tin mine, it's a little hard to mount an argument that it could ever be over-developed.

Ayling certainly does not think so.

''With the Laguna Holiday Club Resort, which opened in 2006, we now have six resorts,'' he says.

''We have one remaining beachfront location and we are planning development of the 134 room-and-villa Angsana Phuket in the second half of this year, with completion in 2010-2011.''

Ayling believes that the property development feeds off the resorts, not the other way around.

''We have renovated all our resort rooms over the past few years because we understand that tourism is what drives Phuket,'' he says.

''Property development is essentially a byproduct. We will never, ever neglect our core business, which is our resorts,'' he adds emphatically.

However, Ayling does accept that times have changed and it's more of a partnership between tourism and property these days.

Perhaps five years ago, property was viewed as a passing opportunity. Not any more.

''It has actually turned into a core business now,'' he says.

''What we are finding as well is that the in-resort properties are becoming more popular.

''It's a combination of investment and lifestyle. We guarantee a return of six percent for six years because we know the underlying revenues and profits of the resort industry can support that.

''There's also the lifestyle element of 60 days' personal usage. I'm very bullish about the tourism industry on Phuket, which can only improve.

''So you actually get a capital gain on top of that as well. It's a no-brainer.''

While Banyan Tree Holdings owns 65 per cent of Laguna Resorts and Hotels, Laguna in turn includes the Banyan Tree Phuket in its portfolio and also owns the Banyan Tree Bangkok.

With an investment partnership freshly inked with HSBC, once a well-known Hong Kong icon and now Britain's largest bank, more quality investors are in prospect for Laguna Vietnam.

The ground-breaking ceremony is likely to be as soon as April or May and all seven resorts are expected to be rolled out very rapidly, ''within three or four years,'' Ayling says.

Of the newly-created bond between Phuket and Vietnam, he adds: ''I would describe it as a brother-sister relationship. We will be sharing the expertise.

''There will be some staff transferring in the construction period and a lot of synergies.''

As for 'Big Sister' Phuket, he adds, high-class entertainment facilities are what the island needs most now.

With talk of gambling in Thailand being legalised, his adventurous beliefs about opportunities are not about to change.

''I think a casino would help Phuket, just as a convention centre would help Phuket,'' he says.

''I lived for three years in Australia and holidayed on the Gold Coast. That would be a model I'd like to see on Phuket. The Gold Coast has Seaworld, Dreamworld . . . there's plenty for families to do.

''There was a time when the only option on Phuket was to sit on the beach. Now people can go shopping at Central Festival and Jungceylon.

''But Phuket still needs more for tourists to do.''

Disclosure: Big Island Media, the print arm of Phuketwan, produces 'Laguna Lifestyle & Travel' magazine for Laguna Phuket

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