An influx of international hotel chains to Koh Samui, Thailand’s third largest island, is setting the stage for fierce brand competition.

Entering the fray are well-known brands including InterContinental, Le Méridien, Conrad, Accor and Moevenpick – all with plans to set foot on the island by end 2011.

According to new data the Samui Hotel Market Update report released by consulting firm, C9 Hotelworks, five hotels managed by global operators will enter the existing supply side during the second half of this year. ‘

The destination has already experienced a surge in luxury brand penetration with properties operated by Four Seasons, Starwood’s W, Banyan Tree, Six Senses and Orient Express. 

(Download the full report here.)

C9 Hotelworks managing director Bill Barnett (pictured right) said the influx of new hotels and resorts was a dynamic performance indicator.

“Leading hospitality brands have been proven to induce demand into a destination and are a strong catalyst for sustainable growth.”

He likened this trend to luxury retail where upscale shopping malls rely on anchor brands to attract upscale shoppers.

“Travel and retail track a strikingly similar customer driven model.”

The report also shows inroads made by Koh Samui in the first half of the year, with hotels hitting an overall occupancy of 62%. This could signal that the island is getting back to business.

Barnett noted that airlift continues to be a primary focus as the increasing popularity of the monthly Full Moon Party on nearby Koh Phangan is drawing worldwide attention, and is displacing seat capacity required for expansion of the mainstream leisure segment.

The stalemate over the issue of a new airport shows an absolute disconnect between government policy and private sector development ambitions, he added.

“We don’t fault Bangkok Airways, which operates the privately run facility, in hampering growth due to its commercial agenda, but look at the epidemic problem over the lack of a government managed long term tourism strategy.”

Recent media comments by Bangkok Airways founder, Prasert Prasarttong-osoth, that the airline was studying the possibility of divesting a 30% stake and, possibly, going into an IPO could pave the way for change on Koh Samui.

Travel industry watchers also viewed positively market liberalisation under the ASEAN Economic Community in the next four years, and open skies policy in the region.

                                                                     Source: C9 Hotelworks Market Research