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The classic view of the beach from Kata Beach Resort

Kata Group Plans New Resorts in Phuket 'Civil War'

Sunday, April 6, 2008
THE CIVIL WAR between North and South on Phuket is expected to intensify this year, especially when it comes to competition for quality resort staff.

While it's definitely a war, this is a particularly civil civil war.

And if Glenn R. Ferrer, one of the Southern Generals, has his way, North and South should cease the sniping and unite quickly to save Phuket and see off other rival destinations.

In his role as director of marketing for the Kata Group, Mr Ferrer is helping to enlarge the battlefield, revealing plans for the Kata Group to expand some more in Kata-Karon and also open a new resort further north than the North, in Khao Lak.

His revelation came as part of an economic survey of the high season for resorts by Phuketwan.

The survey revealed no surprises. This high season has been good for all resorts, if not for everyone in the tourism business.

Yet the survey did highlight some outstanding divides on Phuket and the intense need for a single body to promote the interests of Phuket resorts, North and South.

Here's what some resorts had to say:

Amari Coral Beach Resort and Spa, Patong: (197 rooms) Predicts continued strong demand for Phuket next high season from existing and new markets. ''Certain markets will continue to book during the green season, especially Latin and Middle East markets. With attractive rates and offers, we expect good results.'' Amari says it has mostly independent travellers booking through tour operators or the Internet.

JW Marriott, Mai Khao: (265 rooms) Anticipates a strong green season with an occupancy rate of 84 percent expected. The Marriott does not distinguish between package tourists and independent travellers.

Novotel Beach Resort Panwa Phuket (75 rooms): ''We expect a better high season in 2008-2009 or one at least as good as this past one.'' Occupancy rate January to March, 80 percent to 90 percent. A drop in the levels is expected from June onwards. Not many package tourists, most book through European travel agents. But package tours are seen as a good option for the green season.

For the Kata Beach Resort, which benefits from being the headquarters for sailing's annual King's Cup Regatta, this green season is predicted to be ''more competitive.''

''There are more hotels,'' Mr Ferrer says, ''but the tourist numbers will be the same. There are no added charter flights, the same demand but more supply, and there will be more competition in the supply sector.''

He notes especially the dividing line that runs across Phuket between Patong and Phuket City.

''There has always been competition between North and South,'' he says.''North Phuket is more upper market. The South is more the middle market, although we have a couple of nice five stars as well.

''We really should be competing with other destinations, not between outselves.

''Travel and tour operators don't tell me 'I moved the group from Kata Beach to some hotel in Bangtao,' they tell me they have moved the group from Kata Beach to Bali, to Cebu, to the Caribbean, to the Maldives, whereever they are dropping the rates.

''This is what we should all look at, really, making Destination Phuket saleable in itself.

''Some hotels still fight over prices, which is wrong. If one group offers rooms at 4000 baht, the tour organiser will contact a similar category of hotel.

''The hotel will say 'What did Kata Beach offer? 4000 baht? OK, we'll give you 3500 baht.'

''That's how the domino effect happens. Soon, we're all bidding at 2000 baht, down from 4000 baht. And in the end, when that happens, Phuket loses.''

He believes the resort groups should all see the harm in price wars. He also sees the Thai family resorts, mostly in the South, continuing to do well, even though more resort chains are coming.

''I think the family companies can continue to be successful,'' he says. ''The Kata Group plans to open a new hotel in Khao Lak.

''That will be the fifth hotel of the group. We don't have a schedule yet, but a plan is in place and some design work has been done.

''We also have more land in Kata, behind Club Med. There's the possibility of another resort there. The Kata Group is growing.''

In the war between North and South, he sees the South with some great advantages.

''We are near the attractions, really,'' he says. ''In terms of the middle market, if you are on Phuket for three nights, do you want to spend all your time travelling? Going from north to south?

''No, you are better off staying in the south. But again, I really believe in Phuket working as a whole, and Thailand working as a whole against other destinatons.''

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Friday March 29, 2024
Horizon Karon Beach Resort & Spa

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