Labuan Bajo Hotel Market Update November 2018
Labuan Bajo, a new rising tourism star is born as Asia’s traveller’s head beyond Bali Hotel pipeline targeting upscale travelers to destination
Komodo Airport Arrivals Number of Passengers
“Labuan Bajo is the main gateway to Komodo National Park, which has been designated by UNESCO as a World Heritage Site since 1991, and was included as “New Seven Wonders of Nature” in 2011. Growing destination popularity is reflected in rising tourism numbers, with airport passenger arrivals experiencing a compound annual growth rate of 31% over the past five years (2012- 2017), combined with expanded domestic flight connectivity.
%
250,000
60
200,000
50 40
150,000
30 100,000
20
50,000
10
-
0 2013
2014
2015
Arrivals
2016
2017
Growth Rate
In the meanwhile, visitors to Komodo National Park increased to 125,069 in 2017, reflecting a compound annual growth rate of 17% since 2011. As the last sanctuary for the endangered Komodo and one of the top diving areas in the world, the market is currently dominated by foreign visitors, which accounted for 61% of travelers in 2017. Further, domestic visitation rose dramatically from 20% in 2015 by 39% in 2017.
To permit expansion of Labuan Bajo’s tourism market, the government is investing in new public roads and infrastructure. Hotel development is also rising in the area with four new internationally branded properties. Labuan Bajo is forecasted to shift into a new growth cycle over the next 12-24 months .” Bill Barnett, Managing Director, C9 Hotelworks
Trends
Forward Outlook
Source: Komodo Airport and C9 Hotelworks Market Research
•
Komodo National Park experienced an uplift in domestic visitors, with a CAGR of 43% over the five-year period from 2012 to 2017.
•
The airport expansion, Labuan Bajo Marina and new public roads are the three major infrastructure developments currently under construction.
•
International source markets are dominated by Western countries, with Europe being the largest source region followed by Australia and North America.
•
Hotel pipeline is focused on upscale and luxury tier properties affiliated with international brands, which is expected to induce demand from travelers with higher spending power.
•
Excursions organized by local travel agencies are the most popular way to visit Komodo National Park, together with snorkeling and diving activities.
•
New international and domestic flight connections are under planning which include direct flights from Singapore, Kuala Lumpur, Darwin, Surabaya, Lombok, Makassar and Sumba.
TOURISM Demand Indicators Last year, Komodo Airport recorded a total of 217,922 passenger arrivals, which represented a y-o-y growth of 24%.
Komodo Airport Arrivals and Flights Number of Passengers
Number of Flights
250,000
5,000
200,000
4,000
150,000
3,000
100,000
2,000
50,000
1,000
-
2010
2011
2012
2013
2014
2015
Airport Arrivals
2016
2017
Domestic flight arrivals increased significantly between 2012 and 2017, with a CAGR of 17%
Flight Arrivals Source: Komodo Airport and C9 Hotelworks Market Research
Komodo National Park Visitors Number of Visitors 100,000 80,000 60,000 40,000 20,000 0 2010
2011
2012
2013
2014
Domestic
2015
2016
2017
Domestic visitors to Komodo National Park have doubled over the past two years
Foreign
Source: Komodo National Park and C9 Hotelworks Market Research
Seasonality Number of Passenger Arrivals 30,000
Peak months are August and December, while February is the lowest period
25,000 20,000 15,000 10,000 5,000 Jan
Feb
Mar
Apr
2015
May
Jun
Jul 2016
Aug
Sept
Oct
Nov
Dec
2017
Source: Komodo Airport and C9 Hotelworks Market Research
2
C9 Labuan Bajo Hotel Market Trends: November 2018
HOTEL MARKET Hotel Supply As of 2016 (latest available data), Labuan Bajo recorded 1,059 keys in registered hotel inventory with the majority of the properties being non-rated. However, pipeline Labuan Bajo hotel properties are focused on international chain hotels with upscale and luxury positioning.
Accommodation Establishments
Hotel supply nearly doubled between 2012 and 2016
Number of Keys
%
1,200
40
900
30
600
20
300
10
-
2012
2013
2014
2015
Keys
2016
Growth Rate Source: BPS and C9 Hotelworks Market Research
Accommodation Establishments by Category Number of Establishments 40
Current hotel supply is dominated by unclassified lodging properties
30 20 10 Rated Hotels Non-Rated Hotels Guesthouses
Hostels
Camping
Source: BPS and C9 Hotelworks Market Research
Hotel Pipeline Hotel Name
Location
Keys
Opening Date
Hotel Bintang Flores*
Pede Beach
45
2018
Laprima Hotel*
Pede Beach
60
2019
Sudamala Labuan Bajo Resort**
Pede Beach
75
2019
Badjo
200
2020
Menjaga Peninsula
120
2021
Badjo
158
2021
Mercure Komodo Labuan Bajo Resort Alila Komodo Resort Courtyard by Marriott Labuan Bajo Komodo Resort *Additional Keys for Existing Hotel **Redevelopment of Existing Hotel
Source: C9 Hotelworks Market Research
C9 Labuan Bajo Hotel Market Trends: November 2018
3
Greater Labuan Bajo Area Komodo National Park Labuan Bajo
Komodo Island
Main Port & Komodo Airport
Manta Point National Park Ranger Camp
Loh Liang Pink Beach
Flores Loh Buaya
Padar Island Rinca Island Sumba Sea
Top 5 Local Tour Destinations
Most Popular Tour/Dive Excursions
Padar Island
Half-day trip
Komodo Island
Full-day trip
Pink Beach - Komodo Island
Diving (2-3 dives / day)
Rinca Island
Liveaboard (2 - 7+ days)
Manta Point Source: C9 Hotelworks Market Research
C9 Hotelworks Company Limited 9 Lagoon Road, Cherngtalay, Thalang, Phuket, 83110, Thailand (Office located at the entrance of Laguna Phuket) T: +66 (0)76 325 346 www.c9hotelworks.com info@c9hotelworks.com