Select Page

Expert’s Voice: Is Chiang Mai a victim of its own volume-driven success?

by | 11 Oct 2019 | Experts

The beautiful Chiang Mai is a popular tourism destination. (Photo: by Focuszaa from Pixabay)

Thailand’s Chiang Mai tourism faces disruption in the midst of a destination identity crisis, writes Bill Barnett, Managing Director at C9 Hotelworks.

According to hospitality data provider STR, market-wide hotel occupancy for the first five months of the year is down 5.1%, compared to the same period in 2018.

In the newly released C9 Hotelworks Chiang Mai Hotel Market Update, the comparison between 2018 when the gateway airport surpassed a record-high 5 million passenger arrivals and now in 2019 as haze and air pollution strongly impacted tourism, are startling reminders how fragile travelers shifting appetites can be.

CHIANG MAI: A POWERFUL DESTINATION

Looking into the numbers this year, total hotel supply in the market is 48,000 keys which is creating a powerful necessity for Chiang Mai to step outside its boutique image and find ways to fill rooms with more mainstream offerings.

A number of properties on the incoming pipeline are branded with international operators, as owners are looking for a competitive edge. The recent opening of the Novotel Nimman Journey Hub is just one example of a Bangkok developer looking to diversify into more affordable hotel assets outside of Thailand’s capital.

CAUSES FOR CONCERN

Talking to hotel operators, C9’s research has highlighted that Chiang Mai’s mounting reliance on the Chinese mainland sector, which is in the midst of a slowdown is cause for concern. In the first half of last year, China was the number one international source market, holding a 14% share in hotel guests.

In the longer-term, moving past pollution, Chinacation and over-development issues, the bigger issue is how will Chiang Mai evolve from a headlong dive into a far bigger tourism pool and still retain the destination’s long-lasting image as a cultural icon? Same same, but different looks to be a challenging task ahead.

To download and read C9 Hotelworks full Chiang Mai Hotel Market Update and graphs, click here.

Bill Barnett

Bill Barnett

Managing Director at C9 Hotelworks

Globally recognized as a hospitality and tourism advisor, Bill Barnett, Founder and Managing Director of Asia-based C9 Hotelworks, is also a frequent speaker at industry conferences. He has been working in the Asia Pacific region for almost 30 years, considered one of the foremost industry experts in hotel residences sector.

MORE NEWS

 

Expert’s Voice: Your annual hospitality commercial success tips article
Hotel developments need a great concept to be sustainable: Shannon Kim
Expert’s Voice: The best value-add investment strategies in hospitality
Biggest challenge is beautiful yet cost-efficient hotel design: Marriott’s Gee Zhao
Expert’s Voice: Influence of social media on hotel marketing
We are going to have a boom in the hotel industry by 2025: Ed Serrano
Expert’s Voice: Airbnb – the big upset for hotels?
We offer a palace for our youngest, most important guests: Mohammed Iqbal Ahmed
Expert’s voice: Hotel manager skills most in-demand in 2020
Small, nimble hotel groups are the new way to success: Dusit’s Dana Atiyat
Expert’s Voice: Why are hotels full but restaurants empty?
Expert’s Voice: Dissecting Shanghai’s changing hotel industry skyline
Be a disruptor, don’t be disrupted: Lifestyle Hospitality’s Nicolas Frangos
Expert’s Voice: Shame on you, unruly OTAs!
Make your hotel known and the word will spread: Mohamed Soussan
Expert’s Voice: Introduction to hotel revenue management
Today’s guest cares about more than just the hotel brand: Hussain Al Rakhis
Expert’s Voice: Hospitality and residential markets are redefining workplace design
TOPHOTELNEWS Influencer: Climate emergency & biodiversity collapse – 5 hotels lead the way with sustainable changes
Boon or bane: Is the oversaturated hotel market ruining NYC?

FIND HOTEL PROJECTS WORLDWIDE

With the TOPHOTELCONSTRUCTION online database your will get access to +6,000 hotel projects worldwide plus the decision-maker contacts.

You have Successfully Subscribed!

Pin It on Pinterest