Tucked away in the Gulf of Thailand, Koh Samui is a tropical paradise that has been dubbed Southeast Asia’s secret island gem. While the island is best known for its stunning beaches, crystal-clear waters, and vibrant nightlife, Koh Samui has also quietly emerged as a destination for top-class hospitality. From luxury resorts and villas to eco-friendly lodges and wellness retreats, Koh Samui offers a range of accommodation options that cater to every type of traveler. In this article, we’ll explore what makes Koh Samui such a special destination for hospitality and why it should be on every traveler’s bucket list.
Koh Samui is a little-big anomaly in Southeast Asia’s massive resort island arsenal. Although the island hosts internationally-known global hotel brands such as Four Seasons, Ritz-Carlton, and W, it remains a lesser-known secret in the hospitality, tourism and hotel industry compared to other islands such as Phuket and Pattaya, which have had a sharp incline upward in recent years.
With a smaller private airport capacity, Koh Samui has, in fact, enjoyed a slower recovery pace and moderate growth trajectory following the pandemic. However, the island’s airport-imposed limitation, where low-cost airline access is limited, might not be such a bad thing as more fast-growing resort islands across Asia struggle with high population growth, traffic woes, and broken infrastructure. Focusing on a more niche tourism segment such as health, wellness, and fitness might be an effective way to maintain sustainable growth for the island.
Koh Samui has always maintained its reputation as a wellness destination, with iconic offerings such as the Kamalaya Wellness Sanctuary and Holistic Spa that remain some of Asia’s best-in-class offerings. Kamalaya is rumoured to be expanding its current operation with additional land, adding another layer to the island’s growth potential. Another successful health and wellness establishment that has attracted a global audience is Vikasa, which offers yoga training and in-house programs. They have tapped into investment from the Alta Capital private equity group and are in the process of expanding to other regional markets.
The bottom line for health, wellness, and fitness travel is how sustainable the marketplace is given a high return guest profile, exceptional in-house spending at a time when hotels are losing traffic to outside restaurants, and most importantly, a longer average length of stay. For smaller destinations like Koh Samui, where typical regional tourists may only spend 2-3 nights on a short break at the beach, program-driven travellers may stay 5-7 nights, hence requiring less flight frequency.
The island could also consider sharing the business with other nearby locations. Take Surat Thani and Nakhon Si Thammarat, which have stunning white sand tropical beaches in Sichon and Khanom and other coastal areas, as examples. These locations offer growth capacity and access to larger jet aircraft.
Midrise condominium hotels have been avoided in Koh Samui, with many island businesses pushing back on these types of developments. They tend to attract low-rate mass travel and are often unlicensed, which could tarnish the island’s reputation as a luxury destination.
However, the failure to expand the existing airport and the lack of a new site with a longer runway remains a blight on the economy. Late last year, the Expressway Authority of Thailand (Expat) announced plans for a feasibility study to link Koh Samui and the mainland, via Khanom in Nakhon Si Thammarat. While debates on whether the island needs a bridge or not have ensued, many think the money would be better spent in rehabilitating the existing ageing infrastructure.
At the end of the day, the old adage “Be careful what you wish for, as someday it may come true” is a telling comment for the island. In Koh Samui’s case, staying small might be the best wish of all. With its natural barrier to mass tourism, the island may attract a more niche market segment, which could provide a more sustainable growth trajectory.
