Invest In Pattaya Blog

Asia Pacific investments to double in 2010

eal estate investments in the Asia Pacific region are set to hit US$85 million in 2010, almost double the amount invested in 2009, according to DTZ.

DTZ´s research found that out of the $315 billion capital currently targeting real estate, 27 percent or $85 million, has been targeted for the Asia Pacific region.

This is almost double the $43 billion of capital transacted in the last 12 months.

“Regional investment patterns are expected to continue in line with 2009 trends, with 27 percent of capital targeting investment in Asia Pacific,” says David Green-Morgan, head of research for DTZ Asia Pacific.

DTZ´s research also found that the $315 billion capital available for investment in real estate globally in 2010 is double the $157 billion of capital transacted in the last 12 months, with the ratio of capital targeting real estate now at 2:1.

This is equivalent to $2 of capital chasing available stock compared to only $1 in the last 12 months.

“Asia Pacific and Europe are both relative winners, with more money targeting these regions for investment than they are raising and investing elsewhere,” says Morgan.

Europe took the biggest market share with 50 percent of the capital targeted for the region.

Collectively, Asia Pacific and Europe are targeted for 77 percent combined of the total investment in 2010.

However, DTZ said only 49 percent of the available money for both regions have so far been raised.

DTZ also said there are two main categories of investor for 2010, namely third party managed funds and institutions.

The third party managed funds are the largest category of investor comprising 60 percent of the market share while institutions make up 28 percent.

DTZ´s research was based on an analysis of data generated by its equity tracker, which covers capital-raising globally from a range of investor groupings.

Property Report
16 December 2009

Tourist predictions for 2010 upto 16 million

The number of foreign tourists to Thailand should reach 16 million next year as the global economic crisis and local political problems have eased, Tourism and Sports Minister Chumpol Silpa-archa said yesterday.

As well, he said, the Thai economy was showing positive signs of improvement and the Thai Khem Kaeng stimulus spending programme would be a key factor that would spur tourism.

“I think the country has already passed the worst including the airport closures in late 2008, the cancellation of the Asean Summit in Pattaya and political violence in April. It is expected that the tourism industry will clearly improve next year on condition there are no new incidents,” he said.

The minister made the comments as the Tourism Authority of Thailand (TAT) introduced Suraphon Svetasreni as its new governor, filling a post that had been vacant for eight months.

Mr Suraphon said the TAT had set its own arrivals target at between 15 million and 15.5 million with total revenues of 560 to 570 billion baht. Arrivals this year are estimated at about 13.5 million, down by 7.4% from last year.

Trips by domestic tourists are forecast to rise to 90 million with total revenue of 430 billion baht, up from 87 million trips generating 400 billion this year.

“However, the TAT will try its best to increase the number of tourist arrivals to exceed the target set by the ministry,” Mr Suraphon said.

Strategies to promote tourism next year will include waiving visa fees from March 2010 to the end of the year. The ministry also plans to develop new tourist attractions with 138 sites planned. It will also seriously promote medical tourism and try to solve problems such as illegal taxis, a frequent source of complaints. Online and social networking will be used more to promote Thai tourism as well.

Prakit Chinamourphong, the president of the Thai Hotels Association (THA), agreed with the latest arrivals estimate of 13 million for this year, saying the association had been reviewing figures and found arrivals still low, even in the current peak month.

The occupancy rate of hotels in Chiang Mai and Phuket stands at around 65%, down from 85% in a normal period, and in Bangkok it is lower than 60%.

“We think this reflects the fact that the tourism industry has not clearly recovered in December as much as we expected. We plan to talk with the new TAT governor about organising the first hotel mega-sale next year,” Mr Prakit said.

Bangkok Post
Newspaper section: Business
23 December 2009

Unexpected tourist increase

The Tourism Authority of Thailand has raised its year-end forecast for foreign arrivals to 14.1 million due to an unexpected surge in tourists last month.

Foreign visitors to Thailand rose by 24.91% year-on-year to 1.34 million in November, according to TAT figures. The percentage rise, however, is from a period last year when arrivals were affected by the blockading of Bangkok’s airports by yellow-shirted protesters.

This month’s arrivals should hit 1.4 to 1.5 million, said the agency, which has raised its forecast for the year to 14.1 million from a previous projection of less than 14 million, down from 14.6 million arrivals last year.

More than 1 million foreigners visited Thailand each month for nine of the past 11 months, said TAT chairman Wichai Srikwan. Only May and June arrivals failed to hit seven figures after political unrest in April cut arrivals to 923,918 and 954,772, respectively.

Buoyed by last month’s results, Mr Wichai said foreign visitors could reach 1.5 million in December, up on an average of 1.2-1.3 million in recent years. Promotions for charter flights to hotspots such as Pattaya, Koh Samui, Krabi and Phuket this month would support the rise.

The wave of new arrivals was in part down to the TAT’s promotional campaign to restore the country’s tourism industry, battered by political turmoil, he said.

Immigration Bureau statistics showed visitors from East Asia rose by 29.78% year-on-year to 660,688 in November. Chinese visitors also surged by 110.38% to 92,541, while Japanese arrivals rose by 14.23% to 87,267. Asean visitors rose by 29.78% to 364,268. European arrivals also boomed, increasing by 16.66% to 418,927, while those from the Middle East rose by 58.46% to 44,987.

Despite the positive statistics, November registered a year-to-date contraction of 7.3% in foreign arrivals to 12.44 million, down from 13.43 million in 2008, according to the TAT.

The TAT board yesterday approved the nomination of Surapol Svetasreni as its new governor. Mr Surapol is scheduled to sign a contract with the agency on Dec 22 and to start work from Jan 1.

Bangkok Post
15 December 2009

High speed rail link from Bangkok through Pattaya FIRST

Thailand’s business ministers meeting approved an investment plan to build a high-speed railway with a Bt100 billion budget for four main routes linking the Thai capital to the country’s four regions.

According to Deputy Prime Minister, Korbsak Sabhavasu, four routes will depart from Bangkok to the northern province of Chiang Mai (745km), to Nong Khai on the Mekong River in the northeast (615km), to the eastern province of Chanthaburi (330km), and to Padang Besar on the Thai-Malaysian border in Thailand’s southern province of Songkhla (985km).

Mr Korbsak said Prime Minister Abhisit Vejjajiva insisted to first build the short eastern route, for it would take less time to execute the work than constructing a long route to begin with.

Read more here