Share perspectives from corporate leaders By Mr. Proudputh Liphataphallop, Executive Director of Proud Real Estate Public Company Limited. Tourism is one of the major industries in Thailand that has been hit hard by the COVID-19 crisis. Is the tourism-related industry still worth investing in? What is the future of the business and strategies to deal with during business monsoons? The session was joined by Mr. Sornchai Suneta, Managing Director, Chief Investment Office, SCB Securities Co., Ltd.

Overview of PROUD GROUP and Proud Real Estate businesses

First, Mr. Proudputh explains the overview of the affiliate business, which consists of two parts: the PROUD Group is 100% owned by the Lippataphallop family. It is divided into 3 groups: 1) Hospitability, namely Intercontinental Hua Hin Resort, Intercontinental Phuket Resort and Holiday Inn Resort Vana Nava Hua Hin 2) Leisure, consisting of Vana Nava Water Jungle Water Park, True Arena Hua Hin Sports Complex, and Andamanda Phuket Water Park (under construction. ) 3) Retail business is BluPort Hua Hin Resort Mall, a joint venture with The Mall Group.

Another part is the business of Proud Real Estate, which is a premium residential property development business such as Focus Ploenchit and Intercontinental Residence Hua Hin.

Key Success and business direction of PROUD GROUP

Since Khun Proudputh has been in the management for more than 9 years, the business group has grown significantly. Because it continues to build the business, there is the Intercontinental Hua Hin Hotel as the starting point. More than 10 years ago, people still dib not view Hua Hin as a luxury travel destination. The highest hotel room rates are 3,000-4,000 baht. There are no high-end luxury hotels or chain hotels from abroad. PROUD GROUP sees market gaps and growth opportunities of Hua Hin. By when the hotel opened Intercontinental Hua Hin 10 years ago, the company intends to be the best hotel in Hua Hin and will make Hua Hin more famous as a World Class Destination. Because even though Thai people are familiar with Hua Hin but for foreign tourists will think of Phuket, Pattaya, Samui more than even when you know Hua Hin but still not popular.
 

After opening the hotel for 2-3 years, someone came to sell a large plot of land across the street. So, we think that Hua Hin is a destination that foreigners want to travel to. It is necessary to have a tourist attraction that is man-made facilities. This is the infrastructure. Building a tourist city Apart from the hotel and condominiums, building Hua Hin to have tourist attractions that people are interested in it is the origin of BluPort, Vana Nava Water Park. In the water park, when it opens, there are many people interested. Because never had it before These are important strategies for putting together a Project Concept that no one has ever done before. If any business is unfamiliar, we design, develop unique projects, and let a partner who specializes in that business take care of the operation. This makes us the first to do business in every segment and each business synergy fosters each other.

Adjust the recovery plan is a critical situation

Khun Praphut said that when an order was closed for the hotel business in April, income was lost, 100%. But businesses still have personnel expenditures, site maintenance. The situation at that time had to change plans every day. Focus on taking care of employee safety and cash flow because there is no income coming in at all. Fortunately, Thai financial institutions are still strong and Proud Real Estate has provided SCB's assistance to suspend principal payments. On the staff side that the company can take care of as much as they can take care of. For employees who must go to social security, the company paid additional money. While the management does not accept salary by helping employees instead of at the same time, the company continues to support four factors such as dormitories, cafeterias, to keep employees to live.

When the situation improves the company is preparing to return to open business services. At first, Worst-Cases Scenario plans to Reduce Operating Costs by 30-40% because revenue has not yet returned 100% as before. But when it comes back to open because Hua Hin is a vacation destination near Bangkok. Resulting in more responses than expected. By the past month of June Occupancy rate of approximately 60%. The company has prepared a strategy to adjust promotions for Thai customers. Popular to travel on the weekend trip. Unlike foreign tourists who travel on a Big Trip. Voucher sales strategies are used to attract customers to bring in cash and do promotion during the holidays, add Friday - Sunday as well.

New opportunities after the crisis: the condominium market

In her view, Khun Proudputh saw that before COVID-19 The Hua Hin tourism was not very busy. Among Thai tourists, it is mostly a weekend trip. Because if it is a long vacation, people will go to different countries. But there are still more Chinese tourists, which disappeared in the wake of COVID. However, the lockdown was a good result for Hua Hin, especially the condominium market that is Residence. Previously, Bangkokians had a second house in Hua Hin. And even more when encountering a long lockdown People switch to work from home. And became Work from Anywhere. People think that they don't need to live in Bangkok 7 days a week like before and want to live in Hua Hin. Therefore, when it comes back to open condominium sales are increasing exponentially.

Khun Proudphut summarizes the main reasons as follows: 1) Hua Hin is not a big city. The main road is only 15 kilometers distance, there are almost full hotels and condominiums, thus supply is limited. 2) People also want to have a Safe House in other provinces. If Bangkok may be logged down again. However, what customers want has changed. Is to need a bigger room It really works for the whole family. And what's special is Proud's project there is a point of sale that takes care of the residents like a hotel. This is the solution to Pain Point customers in having to clean the laundry room and fussy housework with maid service, cleaning, laundry, service assistant, sundries, until shopping into the house to help answer the problem at this point. Which has made some clients look towards giving them a retirement address Because Hua Hin has the facilities ready for life after retirement Such as golf courses, hospitals, etc.

In addition to the above 2 reasons, Another important factor is the Thailand Riviera project, which the government wants to promote tourism to the western coastal cities. From Phetchaburi Prachuap Khiri Khan Down to Chumphon and Ranong. By building infrastructure projects on all routes, including the Nakhon Pathom-Cha-am motorway That will shorten the travel time to Hua Hin from more than 3 hours to just 2 hours. Including a high-speed train that will take us to Hua Hin in just 50 minutes. There is also a Hua Hin airport. Currently, it is an international airport, accepting flights from abroad. In addition, more domestic flights have been launched to Hua Hin, such as round-trip flights. Chiang Mai - Hua Hin Udon Thani - Hua Hin Of AirAsia, etc., all of which are supporting factors that make Hua Hin the main city, the gateway to the South.          

Opportunities in Thailand after COVID-19
 

In the question after the COVID-19 crisis What opportunities are waiting for us? Khun Proudputh sees how tourism will come back to Thailand. And from the fact that we can manage COVID-19 well, it is what builds traveler confidence. So, when does the opportunity for travel come back? Tourists would also like to return to Thailand. And more importantly, foreigners accept the Thai medical potential. This is a great opportunity for the Medical Tourism business, including the accommodation business for foreigners, the Retirement or Long Stay group that is expected to have great growth opportunities. In addition, Khun Proudphut thinks that after the COVID-19 crisis this is an opportunity for Thai tourism entrepreneurs to focus on high-value tourists rather than high-volume or to find new business strategies that create balance and sustainability.
 

Lesson Learned From COVID-19

For what he has learned from going through this great crisis is Always have a Worst-Case Scenario plan prepared. Khun Proudphut admitted that when the first COVID outbreak was optimistic that the event would end in no time. Causing it was not planned to support it. But as the situation escalated causing problems to be dealt with by solving immediate situations. Khun Prawut said that if there is a plan to support it It will help you to solve problems faster. And it's not just one plan, but Worst-Case Scenario must think about 4-5 situations. Because when the situation changes must adjust financial matters, personnel, marketing strategies, etc. according to the situation. 

Government measures to help real estate businesses and tourism
 

Thailand can gain foreign interest in being a long stay accommodation and living after retirement. If the visa is considered for a group of foreigners who wish to stay in a Long Stay, it is more flexible and convenient. Including the percentage of ownership of foreign units (Foreign Quota), which is limited to 49%. If this law is amended, it is expected that there will be many foreign demands. Because many projects in the Foreign Quota part sold out quickly. That has not been sold out as part of the quota of Thai customers. If this can be adjusted, it will help stimulate the economy and make foreigners feel that we welcome them. Even if there is a permanent residence permit issued for them to come in more easily. It is not just to help promote the real estate business and travel but also other businesses. Because the group that will buy a condo in Thailand is classified as a group with purchasing power This will lead to another spending in the country as well.

Source SCBTV, the series Begin Again, Episode the Rise Above the Rest by Mr. Proudputh Liptapanlop of Proud Real Estate Public Company Limited