The average low end party people come to the island for Full Moon party only. They typically spend $20/day and about half of that on budget accommodation, usually dormitory or hostel style. They are not the customer I am looking for. You might spend $20 – $40 per night for a nicer room. Some luxury rooms go for over $2,000 per night. Prices like that could rival San Francisco. We plan to undercut that with some nice villas available that make a great option for groups. We’ll fill in the meat and potatoes of revenue with some small but well appointed single occupancy bungalows. With low Thailand labor costs and occupancy on the rise across the island, it’s a sure bet. There is constant new growth on the island. New accommodations are being built every day, and yet it barely outpaces demand. Peak Season is November – February (it used to be Dec-Jan, but it gets longer and longer year by year). During Peak Season island occupancy used to routinely exceed capacity. After the King’s death in 2016 there was a bit of a down-turn. Peak season the following year only reached 80% capacity. Since then, more resorts have been built, and this year (Winter 2019-2020) peak season STILL hit nearly 100% capacity. Resort business has been aided by the fact that in 2015-2017 there was a crack-down on Hostels and dormitory accommodations with too many beds per building size. The result has pushed nearly all visitors to the island slightly up market. Under current circumstances, and expected growth, new resorts expect to make back their investment costs within a couple of years. It is worth noting that the strength of the growing Thailand economy has caused a minor downturn in tourism into the country. However, we have seen a corresponding up-tick in Thai citizens travelling within Thailand. For many from the big cities of Bangkok and Chiang Mai, the island of Koh Phangan is the perfect weekend getaway, mixing the Thai traditions of marvelous beach parties with quiet contemplation of yoga retreats and serene island pace of life. Imagine the possibilities.
Imagine the Possibilities