TOURISM experts and online travel platforms are welcoming the collaboration between e-commerce giant Alibaba and Thai tourism authorities to develop smart and digital tourism, although there are concerns over possible negative impacts.
Critics voiced concerns over a potential monopoly following a deal between Alibaba Group and Thai state agencies covering a number of areas, including tourism. Some also suggested the authorities needed measures to protect tourist attractions from an expected influx of foreign visitors.
Under a partnership deal on tourism, the Tourism Authority of Thailand (TAT) will expand cooperation with Fliggy, Alibaba’s online travel business and China’s leading online travel service provider, to focus on support for smart and digital tourism in Thailand. As an official strategic partner of TAT, Fliggy will work with the agency to offer smart technological experiences at multiple facilities and tourist attractions across Thailand for the convenience of visitors – ranging from online tour guides to electronic ticketing systems.
“In any case, like it or not, we cannot bar Alibaba from entering Thailand. So the best approach is to ensure local tour operators are well prepared for increased competition,” said former TAT governor Pradech Phayakvichien. “They should adjust their approach and work out how they could get the most benefits out of the collaboration,” he suggested. “In the digital era, we need technology to help connect us to the world and potential customers.”
“But the most important thing for Thailand is that we preserve and protect our tourist attractions,” Pradech said.
“We have to maintain or improve the standard of our [tourist attractions]. If we leave our beaches damaged, how could the Alibaba travel platform help us sell them?” he asked.
Prominent marine ecologist Thon Thamrongnawasawat said he expected the collaboration to bring changes in the proportion of Chinese tourists coming to Thailand. Whereas most Chinese now tour the Kingdom in groups, there is potential to also attract many more couples and individuals. That would make it easier to cope with the arrivals and better distribute income to local vendors. Thon said boosting the number of Chinese tourists or their spending here should not be the main objective for the partnership, as the figures are already high.
Statistics show Thai tourism relies heavily on Chinese visitors. As of April, 30 percent of all foreign tourists arriving in Thailand this year were Chinese, according to Thon, who is a member of the National Policy Committee for Tourism. Estimates are that tourism this year will generate about Bt3 trillion in revenues – a third of which is expected to come from Chinese tourists, he said. However, there is still concern over a possible surge in Chinese tourists following the collaboration. Pradech said authorities need to put measures in place to restrict the number of tourists at attractions where there are risks of damage.
Thon, who sits on the committee drafting the national strategy on environmental issues, said the draft plan would limit the number of foreign visitors to national marine parks to six million a year, to help protect marine resources from swift deterioration brought by heavy tourism traffic. Out of the six million visitors, four million are expected to be from China. “We are already in a ‘tourism trap’. Around 10 million Chinese tourists visit Thailand every year and generate around Bt1 trillion. If they are dissatisfied with us, what will happen” to Thailand’s tourism industry?” asked Thon.
Partnering with Alibaba
Yuthasak Supasorn, TAT governor, said in a recent press release that the agency would partner with Alibaba for tourism marketing activities through the giant’s online platforms, as well as connect with Alibaba’s other marketing channels to develop “big data” for the Thai tourism industry.
The partnership would help increase the competitiveness of small and medium-sized tourism companies in terms of the development of new products and services that will attract more Chinese tourists to the country, he added. “We hope it will also help both new arrivals and return visitors from China discover emerging secondary destinations, so it is a ‘win-win’ situation for both parties,” he added.
Some critics voiced concern that Fliggy might monopolize the Chinese tourist market and affect local online travel agencies.
But others see a partnership with the giant firm in more positive terms, as an opportunity to expand the market. Amornched Jinda-apiraksa, CEO, and co-founder of TakeMeTour, the largest marketplace for local tours in Thailand, said the collaboration would benefit Thai tourism in terms of getting more Chinese tourists into the country.
He said operating the travel business in the Chinese market is very challenging due to the language barrier and because Chinese tourists have specific behaviors and characteristics.
Amornched added that TakeMeTour this year planned to focus more on Chinese tourists, and that presents a good opportunity for Thai travel operators to offer their services and products directly to Chinese consumers on the Chinese platform.
The TAT has yet to give further details about the collaboration. Amornched said the format could be the opening of a Thai tourism shop or a flagship store on Fliggy.
TakeMeTour was one of six Thai start-ups and 37 Asian entrepreneurs joining the eFounders Fellowship Programme at Alibaba headquarters in Hangzhou, China, in March. Amornched said Alibaba has a strong ecosystem and his firm is willing to join the platform.
As a community-based online tourism platform that provides travel experiences in local communities around Southeast Asia, Somsak Boonkam, founder and chief executive of Local Alike, said his business may not be affected. That’s because the average Chinese tourist has no interest in community tours and only a small number have the taste for eco-friendly tourism.
Thon agreed. “You do not have to fear [about the Chinese platform snatching away customers.] The Chinese tend to buy Chinese goods, anyway,” Thon said.
As part of the collaboration, Fliggy and Ant Financial, Alibaba Group’s affiliate and operator of Alipay, are also in active discussions with various related government agencies to drive a digital transformation of Thai tourism.
Alipay, operated by Ant Financial, is China’s largest online payments and money transfer system, with more than 500 million active users. Thailand is among Alipay’s top three overseas-transaction hubs.
Somsak said using Alipay would help facilitate convenience to Chinese tourists with a familiar payment option when they traveled abroad. However, he urged the government to look into this matter carefully as there are concerns the system could allow massive outflows of money from the country.
Varithorn Sirisattayawong, research head for Kasikorn Research Centre, said Fliggy will help increase the number of Chinese tourists who choose Thailand through booking on the platform. It would benefit Thai banks and non-banks that offer international money transfers, payments, and exchange, as they would receive additional transaction fees as the number of transactions increased.
Varithorn said the use of Alipay to arrange a visa on arrival and tourist tax refunds for Chinese tourists would not directly impact the business of Thai banks and non-banks.
When it comes to buying a condominium in Bangkok, investors can also consider getting a resale condo rather than a brand new one from the developer.
There can be various reasons why one would consider buying a resale condo. It could be that a popular development is already fully sold and there are no more units for sale from the developer.
It could also be a case whereby the investor would like to start getting rental returns rather than waiting 3 years. Or it can be for practical reasons whereby the buyer needs a place to stay in the very near future.
Some people will find older condominiums represent better value as they are able to get more spacious units with the same amount of money spent and purchase a property in a more central location.
On the flip side, the buyer should also be aware that older condos could be less aesthetically pleasing and the facilities could be lacking compared to the modern ones.
If you are planning to go down the route of getting a resale condo, here are 4 things that you should take note of.
Inspecting The Property
Since the property is completed, you are able to physically inspect it. You should make a trip down personally to see the property and its surroundings.
You can judge for yourself if the particular unit is a good one to consider. As well as being able to notice if the general upkeep of the common areas is done well.
This will affect the value of your property in the long run.
Location
This is always an important consideration for both new and resale condo. Is it near public transport? Are there amenities nearby? Is this an area that will capture good tenants? Enough said.
Deed & Ownership
You need to ensure the seller is the rightful owner of the property. You must also make sure that the sale transaction is lawful.
Ask for the actual title deed to make sure, while a letter confirming the payment of the deposit must be signed and sealed.
Engage A Reliable Agent Or Representative
A good and reliable representative or agent would be able to help with all the paperwork including contracts and deed transfers.
Make the effort to work with someone who is competent and whom you can trust. This will go a long way in eliminating risk and unnecessary unpleasantness.
The residential condominium market in Bangkok’s central business district (CBD) remains positive as the take-up rate rose significantly because of reduced supply in the first quarter this year.
Condo prices increased throughout Bangkok and this is expected to continue with stronger demand from domestic and international buyers, said Edmund Tie & Company, a real estate consulting firm.
The company reported the number of condo units in Bangkok grew by 623 units in the first quarter this year. This is a fall from the 2,504 units released in the fourth quarter of 2017.
Supply in the first quarter decreased from 2,367 units in the first quarter of 2017, down 73.6%.
The majority of the units launched in the first quarter were located around central Lumpini, followed by the Sukhumvit area. Access to green spaces, luxury views, and connection to public transport makes central Lumpini popular with developers and buyers.
The average pre-sale rate for upcoming condo projects in Bangkok’s CBD market was an impressive 81.0% in the first quarter.
This is notably higher than the 67% take-up in the first quarter of 2017 and 70% in the fourth quarter of 2017.
The average asking price of resale condo units also increased to 132,000 baht per square meter, up 0.69% from 131,100 baht in the last quarter of 2017.
Condominium values increased slightly in the first quarter of this year as the price index rose to 159 from 158 in the fourth quarter of 2017.
Edmund Tie & Company reported a variety of new projects in the second quarter of 2018. Among them are Loft Sathorn12 and Loft Sukhumvit.
“We expect the sales momentum of the condo market to continue. There is keen interest from both domestic and international investors looking to participate in the CBD condominium market in Bangkok, and prices are set to climb further,” said the report.
“Developers have a positive outlook on the market, believing there is still potential for growth and will look to move their businesses forward. Medium to large developers are typically looking for prime CBD locations because demand for homes in the CBD tends to be more resilient. The main challenge for developers will be increasing land prices, as new record land prices have become a regular occurrence. CBD plots will continue to escalate in price as the availability of land parcels becomes increasingly challenging.”
Bangkok’s CBD office market is expected to be active throughout 2018, with total supply restrained to 160,596 sqm until 2020. This implies that the vacancy rate will remain low and rents will continue to rise, the report said.
Average asking rents are likely to remain positive in the second quarter of 2018. The company expects rents to rise steadily at a modest pace in early 2018 and beyond.
Tenant occupancy levels are expected to remain strong in 2018, with demand emanating from both domestic and international companies.
Edmund Tie & Company anticipates demand will be bolstered by online businesses and firms operating in the technology sector.
The company reported the net absorption of the office market remained in the positive territory in the first quarter.
The overall occupancy level rose to 90.3%, compared with 89.9% in the fourth quarter of 2017.
The higher office take-up rate in the CBD also signals stronger leasing activity, with the growth in demand for office spaces extending from the fourth quarter of last year.
There is a continuous office space supply in non-CBD areas. New supply in non-CBD areas in the first quarter of 2018 increased by 15,000 sqm. An example of a recent completion in a non-CBD area is Ari Hills, a mixed-use development hosting office, and retail spaces.
Separately, there were no new completions in the CBD area in the first quarter of 2018, and the total office stock in the CBD remained at 1.833 million sqm. There are also several developments in the pipeline supply.
Singha Complex is officially opening in the second quarter of this year (50,596 sqm), and other CBD developments scheduled for completion in this quarter include Samyan Mitrtown (50,000 sqm in 2019), the Aspiration One (30,000 sqm in 2019) and Bhiraj Sathorn 15 (30,000 sqm in 2020).
The growth in net absorption and higher occupancy level adds upward pressure on rents, and the average asking rents in the CBD increased to 820 baht per sqm per month in the first quarter. The prime office gross rental index for the period improved to 127.0, up from 125.0 in the first quarter of 2017.
Located in the highly desirable neighborhood of Thonglor – Ekamai, Maru Ekkamai 2 is also one of the few condominiums that are pet-friendly.
The Developer
Maru Ekkamai 2 is developed by Major Development Public Company Limited. Today, the Company was listed in Stock Exchange of Thailand (MJD- Property Sector) with fully paid registered capital worth of Baht 700 million.
The Company is primarily engaged in the development of properties for sales, hotel business, property rental and service business. The Company and its subsidiaries develop high rise condominiums, hotels, resorts, and spas, as well as serviced apartments. Their projects include Hampton Thonglor 10, Fullerton Sukhumvit, WaterMark Chaophraya River and Manhattan Chidlom, among others.
The Location
Maru Ekkamai 2 is located in a prime location, at the beginning of Sukhumvit Soi 63 or we called it Ekkamai. Maru Ekkamai 2 is located between Ekamai Soi 2 and Soi 4, opposite the Bangkok Business Center. It is well known that Ekamai is a parallel road connecting Thong Lo. (Sukhumvit and Petchaburi Road).
The atmosphere is quite lively throughout the day and night. It is also surrounded by swanky restaurants, chic cafes, famous entertainment venues and community mall.
The distance from Maru Ekkamai 2 to Ekamai BTS is only 450 meters.
And right next to Ekamai BTS is a mega mall Gateway Ekamai.
It is also not far from the Ramintra-Narong Expressway, Si Rat Expressway. And the Chalerm Mahanakorn Expressway Both inbound and outbound.
This area is home to both Thai and foreigners. It is also a zone that investors are very interested in.
Maru Ekkamai 2 Project Highlights
Total Area
1-2-77.2 rai
Number of floors
32 floors
Number of Units
371 units of accommodation.
1 shop
Room Type and Room Size
Studio: 29.5 sq.m.
1 Bedroom: 32.5 – 35.00 sq.m.
2 Bedrooms: 55.5 – 60.5 sq.m.
Duplex: 41.5 – 74.5 sq.m.
Parking Lot
The car park floor is 1-8, 44.47% or 165 cars.
Location
Soi Ekamai 2, Prakanong Nuea, Wattana, Bangkok.
Expected Completion
May 2020.
Nearby Attractions
Department store
Big C Ekkamai: 290 m.
Park Lane: 150 m
Gateway Ekamai: 650 m.
Major Ekkamai: 700 m.
J Avenue: 1.5 km.
Thong Lo: 1.6 km
The Commons: 1.6 km
Rain Hill: 3.0km
Plearnwan Market: 3.1 km
Villa Market: 3.4 km
Emporium: 3.6 km
The EmQuatier: 3.7 km
Terminal 21: 4.6 km
place of education
Ekamai International Airport: 1.5 km.
Srivikorn: 1.5 km.
Bangkok: 2.7 Km.
Demonstration School: 4.5 km.
Srinakharinwirot University: 4.6 km
Medical Center
Sukhumvit Hospital: 800 m.
Samitivej Hospital: 2.2 km.
Kluay Nam Thai Hospital: 2.7 km.
Bangkok Hospital: 3.3 km
Piyavate Hospital: 4.7 km.
Rama 9 Hospital: 5.8 km
Religious place
Wat That Thong: 600 m.
Government offices and other agencies.
Planetarium: 800 m
Benjasiri Park: 2.7 km
Metropolitan Electricity Authority Ladprao – Bangkapi: 3.5 Km.
Queen Sirikit National Convention Center: 4.9 km
Benjakiti Park: 5.4 km.
Maru Ekkamai 2 does come with a full suite of facilities. From fitness room, a large swimming pool to a heated pool. There is also a central area for activities such as bike parking. Comes with Auto, EV Charger, Bark and Bike Wash, Co-Creation Space, Co-Kitchen Space, Outdoor Theater and Quiet Room.
Here are the various views you may get staying in Maru Ekkamai 2. It’s relatively unblocked from all sides.
North View
South View
East View
West View
Conclusion
If you are considering buying for investment, good properties in Ekkamai do have healthy demand. This is in the heart of the area where the Japanese community thrives. Renting should be relatively easy.
What is unique about Maru Ekkamai 2 is that it is pet-friendly. There is an increasing number of people who own pets and they can only choose from condos that are pet-friendly, which at the moment are not a lot. This is a major attraction for future owners and tenants.
Based on what’s available currently, prices start 6.8MB.
CHINESE developers have bulked up their presence in the Bangkok property market with a steady pace of condominium unit launches at projects worth more than Bt30 billion in the first quarter of this year as the city cements its status as a prime destination for Chinese investments, property experts said.
Bangkok ranks as the third most popular city for Chinese entities expanding their investments in the property sector in terms of corporate leasing activity over the past three years, an industry expert said.
Nexus Property Marketing managing director Nalinrat Chareonsuphong said that in the first quarter foreign investors increased their investments in Bangkok’s condominium sector. Large Chinese companies that did not invest in joint ventures with Thai developers accounted for around 20 percent of the condominium units launched in the city for the three months – at projects worth a combined Bt30 billion-plus.
The brisk activity in the market is seen as reflecting foreign investors’ increased confidence in Thailand.
Despite foreigners investors already being very active in the Thai market – along with Japan, Hong Kong, and Singapore – they are looking for opportunities to add to their investments in the Kingdom.
“We have started to see more condominium projects that target Japanese people in Thailand as well. And we expect to see at least four to five large-scale projects from Japanese developers this year,” Nalinrat said.
In the first quarter of the year, some 14,094 condominium units were launched in the Bangkok market – by both large and small developers. The new supply corresponds to an earlier projection, resulting in a total of 564,000 units.
Due to the rising land prices in the heart of Bangkok, it has been very challenging for the developers to retain the land for new developments, Nalinrat said. This has resulted in most projects being located farther out from the center, with the Sukhumvit zone accounting for 29 percent, the Phayathai-Ratchadapisek-Rama 9 zone with 23 percent and Thaksin-Petchkasem, 17 percent.
In the second half of 2018, the company expects to see more projects launched in the Chaeng Wattana and Ram-Indra areas due to a clearer view of the plans for the Pink Line mass rapid transit route.
“We also will see more projects of super-luxury condominiums with a starting price of Bt400,000 per square meter by the end of this year or early next year, as a result of the higher land price,” Nalinrat said.
“Meanwhile, the market for city condominiums will keep expanding into the areas served by the extensions of the rapid mass transit lines, but the prices in this market will not increase by much.”
Meanwhile, JLL yesterday announced the finding of its latest survey in the series “China12: China’s Cities Go Global”. Bangkok was found to be the 10th most popular destination for mainland Chinese firms expanding overseas and ranks third in terms of volume for Chinese corporate leasing activity over the past three years.
The report analyses 12 Chinese cities and their transformation into major hubs of innovation and global interaction. It also delves into the country’s emerging wave of influential corporates and the impact that this group of dynamic Chinese companies has beyond the domestic market.
“The China12 is home to a growing group of highly dynamic and ambitious new-generation firms that will drive the next wave of globalization,” said Jeremy Kelly, director of global research at JLL. “We’re already seeing a higher number of domestic brands – both established firms and startups – enter the international market, with key targets in South and Southeast Asia.”
Among the global network of cities, Asian markets such as Singapore, Tokyo, Jakarta, Bangkok, Seoul, and Delhi are featured prominently. Leading the pack is Singapore as the top destination for mainland Chinese firms expanding overseas.
“Not only is it Asia’s most stable and transparent market and a global financial services hub, Singapore also carries strong links to China and is geographically well-placed to act as a gateway into Southeast Asia,” the JLL report says.
Two of the world’s most globalized cities – Tokyo and Seoul – come in at a close second and in fifth place, respectively, demonstrating China’s appetite for the world’s leading gateways and financial centers.
Jakarta ranked sixth, and Bangkok at 10th are major beneficiaries of Chinese companies’ expansions into Southeast Asia. Delhi, in 13th place, is also noted as a key target as Chinese corporates seek to tap into India’s vast population of over a billion people, the report notes.
