AMCHAM

LUXURY RESORT MARKETS PHUKET AND SAMUI

April 21, 2010

• Phuket Trends and Outlook:

• 2009 at a Glance

• Q1 2010 Performance Snapshot

• Going Forward: Key Challenges

• Samui Trends and Outlook:

• 2009 at a Glance

• Going Forward: Key Challenges

• Resort Island Property: Updates and Trends

What’s ahead?

Trends and Outlook

• Annual visitor arrivals bounced back to 2007 level of 2.9

million.

• Visitors were more price sensitive due to a global economic

crisis exploding in H2 2008.

• Discounting rates became a strategic tool to draw guests.

• Signs of a travel rebound emerged in the final months of the

year as economies around the world strengthened.

Phuket2009 at a Glance

Phuket2009 at a Glance

PhuketQ1 10 Performance Snapshot

• Hotel occupancy and RevPAR ahead of 2009 created a strong

base for performance pick up.

• Q1 2010 market wide occupancy was closed at 85% reflecting a

tremendous improvement of 25% from Q1 2009 and 20% from

YTD 2009.

• Example of uplift Patong average room rates closed at THB

4,590 (about USD 145) showing 17% increase versus YTD 2009.

PhuketGoing Forward: Key Challenges

• Potential for oversupply in midscale and upscale.

• Low season to impact annualized figures with political unrest

hitting China market and MICE rebound.

• Airlift growth has created strong volume fundamentals but key

concerns on Thai airways pricing increase and flight reductions.

• Branded properties will penetrate markets and create

destination promotion benefits but new openings to set back

rate growth to 2011.

Trends and Outlook

Samui2009 at a Glance

• A domino effect with an occupancy decline of 5%, average

room rates 13% and RevPAR 20%.

• Inverse growth trends between increased Asian visitors and a

decrease in European’s.

• Airlift limitation created a major reliance on market as 91% of

arrivals were from domestic flights.

Samui2009 at a Glance

SamuiGoing Forward: Key Challenges

• Environmental control over Samui airport limiting a maximum

of 36 daily flights constrains sustainable visitor growth.

• Lack of developed tourism demand generators and attractions

inhibit shift into mass tourism model.

• International branded hotels create induced demand for the

destination.

• With incoming supply the market could see supply outstrip

demand.

Updates and Trends

Resort Island Property

Resort Island PropertyUpdates and Trends

• 2009 was the year “failure to launch” said it all.

• Resales became a significant segment.

• Sharp shift in developer profile from foreign to Thai.

• Limited distress but some banner failed projects.

• Domestic buyers on rise creating low end products but

increasing market share.

• Off plan branded residential sluggish, while urban demand up.

• Property funds to become key equity drivers.

2010?Keep the Faith