Hotels turn to China, MiddleEast as Europe stays away

The operators expect the global financial crisis and domestic political unrest to continue affecting international arrivals next year, particularly from Europe.

Debbie Dionysius, senior marketing director at Laguna Resorts and Hotels, a leading resort operator in Phuket, said the political chaos was already hurting the company.

She said arrivals from key longhaul markets like Australia and Europe, particularly Russia, Germany, Switzerland and Scandinavia, had showed a 12percent yearonyear drop in the third quarter.

"Many overseas governments have issued travel warnings for Thailand, and that has hit the country's hotel business," Dionysius said.

"We're working with Shanghai Airlines, which is now operating direct flights into Phuket, to encourage Chinese and other Asian tourists," said Dionysius.

The group plans to increase its proportion of Chinese and Middle Eastern guests from between 1 and 2 per cent now to 5 per cent next year.

Meanwhile the Laguna Phuket is spending Bt15 million to create an event space called Latitude, aimed at attracting more business meetings. It will be able to facilitate 1,500 people.

The hotel has also opened its new Laguna Marquee conference hall, which can accommodate between 600 and 1,000 guests.

With both of these new facilities, the hotel expects its corporate business to increase to 20 per cent of revenue next year.

Dusit International senior vice president Octavio Gamarra said that despite the global economic crisis its two longterm properties in Dubai, the Dusit Thani Dubai and the Pearl Coast Serviced Apartments, were enjoying a record year.

Also the Dusit Residence Dubai Marina opened on October 1, and its first month exceeded all expectations.

"Business on the books for all three properties for the last two months of this year and the first quarter of 2009 is ahead of pace," said Gamarra.

The group's UAE properties also have a positive outlook for next year. Properties there are Dusit Thani the Palm Jumeirah, the Dusit Thani Abu Dhabi, the Dusit Residence Abu Dhabi, Dusit Residence the Palm Jumeirah and Dusit Devarana the Palm Jumeirah.

Gamarra said that in Thailand the company would focus on shorthaul markets, especially the Middle East and AsiaPacific.

The company has targeted 15percent growth in leisure and business travellers to the Kingdom.

"With the global economic slowdown and its effect on US and European economies, we see greater potential in the shorthaul markets and aim to pay more attention to the Middle East and the AsiaPacific, particularly China, Korea, Singapore, Hong Kong, India and the United Arab Emirates.

"The economies of these regions have not suffered to the extent the Western financial sector has and will provide more buoyant feeder markets.

"Shorthaul intraregional travel is more affordable and will continue to dominate tourism in Asia next year and into the next decade."