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Marketing Strategies for Real Estate Developers Targeting Long Stay Tourists
and Expatriates in Phuket
Oraphan Tungsomboon
A Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of
Master of Business Administration in Hospitality and Tourism Management
(International Program)
Prince of Songkla University
2007
Copyright of Prince of Songkla University
iii
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v
Thesis Title Marketing Strategies for Real Estate Developers Targeting Long Stay Tourists and Expatriates in Phuket Author Miss Oraphan Tungsomboon Major Program Hospitality and Tourism Management (International Program) Academic Year 2007
ABSTRACT
Phuket has a growing number of tourist arrivals, which attract significant new foreign investment in tourism-related projects. In recent years, Phuket has become more than just a popular holiday destination; it is now home to tens of thousands of expatriates and long stay tourists attracted by the tropical climate, stunning vistas and international standard facilities. Therefore, the real estate marketing strategies became essential to every developer nowadays. The study was designed to analyzed the factors influencing the decision making process of long stay tourists and expatriates in Phuket when choosing real estate. Moreover, to gain the information of what makes for effective real estate marketing strategies for long stay tourists and expatriates. The study has reviewed key international real estate markets, the domestic real estate market in Thailand, marketing strategies employed by real estate companies as well as ideas and theories related to consumer behavior. The data were gathered through self-administered questionnaires. Three hundred and ninety two questionnaires for long stay tourists and expatriates were apportioned at the Phuket Immigration Office during March 12th to April 16th, 2007. Moreover, forty-three questionnaires were distributed to qualified real estate developments. The SPSS (Statistical Package for the Social Science) was employed to evaluate the final result of quantitative method. The findings show that Place, Price and Product were the most important factors respectively for long stay tourists and expatriates in choosing the real estate in Phuket, whereas, promotion is the least important factors; the real estate developers assumed that Product, Place and Price were the most important factors, whereas process is the least important factor; and word of mouth advertising efforts were found to be the most successful among the respondents. The
vi
study suggested that long stay tourists and expatriates are their own specific target group and react differently to the real estate developer marketing strategies. Therefore, real estate developers should implement more effective marketing strategies that are focused to a specific target population. Key words: Real Estate, Marketing strategies, Long stay tourists, Expatriates, Phuket, Thailand
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CONTENTS
Page
Contents viii List of Tables xi List of Illustrations xiii List of Abbreviations and Symbols xiv Chapter 1. Introduction 1 1.1 Background 1 1.2 Related Literature 5 1.2.1 Long stay market 6 1.2.2 Real estate market 7 1.2.3 Real estate market in Thailand 13 1.2.4 Marketing for real estate 24 1.2.5 Consumer markets and buyer behavior 31 1.2.6 Related Research 39 1.2.7 Conceptual research framework 41 1.3 Objectives of the study 42 1.4 Significance of the study 42 1.5 Data sources 42 1.6 Limitations of the study 43 1.7 Scope of the study 43 1.8 Definition of terms 43 1.9 Marketing mix for the study 45 2. Methodology 46 2.1 Target Population 46 2.2 Sample size 47 2.3 Sampling method 48
ix
2.4 Instrument selection 48 2.5 Data collection 49 2.6 Data analysis 50
2.7 The level of important to be measured 51 CONTENTS (CONTINUED)
Pag
e
3. Results 52 3.1 Introduction 52 3.2 Research finding 52
3.2.1 Factor that influence long stay tourists and expatriate�s 52 Decision making in choosing real estate in Phuket 3.2.2 Real estate developer 74 3.2.3 The relation of marketing mix and personal factors 83 3.2.4 Respondents� comments from long stay tourists and expatriates 92 3.2.5 Respondents� comments from real estate developers 96 4. Summary 100
4.1 Introduction 100 4.2 Summary 100
4.2.1 Conclusion of the study result from long stay tourists and 100 expatriates 4.2.2 Conclusion of the study result from real estate developers 104
4.3 Discussion 105 4.3.1 Objective 1 105 4.3.2 Objective 2 106 4.3.3 Objective 3 109
4.4 SWOT analysis of real estate in Phuket 112 4.4.5 Summary of SWOT analysis 116
4.5 Recommendation 117
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4.5.1 Recommendation of Marketing Strategies for 117 Real Estate Developers 4.5.2 Recommendation for the government and provincial 120
4.6 Recommendation for further study 121
CONTENTS (CONTINUED)
Pag
e
Bibliography 123 Appendices 129 A: General information of Phuket 130 B: Phuket tourist map 142 C: Real estate developers in Phuket 143 D: Questionnaires for Long Stay Tourist and Expatriates 146 E: Questionnaires for real estate developer 152 Vitae 160
xi
LIST OF TABLES
Tabl
e
Page
1.1 International tourists arrival to Thailand from 1997 - 2005 2 2.1 Target population of real estate develop in Phuket 46 2.2 Sample size of long stay tourists and expatriates in Phuket 48 3.1 Social-demographic profiles of respondents 55 3.2 Tourism behaviors among long stay tourists and expatriates 57 3.3 Country of residence among long stay tourists and expatriates in Phuket 58 3.4 Area of residence among long stay tourists and expatriates in Phuket 59 3.5 Favorite styles of architecture and expense per month for accommodation 60 3.6 The access to information of the accommodation by long stay tourists 61 and expatriates 3.7 Importance level of Product factors among Long stay tourists 64 and expatriates respondents 3.8 Importance level of Price factors among Long stay tourists 65 and expatriates respondents 3.9 Importance level of Place factors among Long stay tourists 66 and expatriates respondents
3.10 Importance level of Promotion factors among Long stay tourists 67 and expatriates respondents
3.11 Importance level of People factors among Long stay tourists 68 and expatriates respondents
3.12 Importance level of Physical Evidence factors among Long stay tourists 69 and expatriates respondents
3.13 Importance level of Process factors among Long stay tourists 70 and expatriates respondents
3.14 Important level of each marketing mix factors among long stay tourists 72
xii
respondents in choosing real estate in Phuket 3.15 Important level of each marketing mix factors among expatriates respondents 73 in choosing real estate in Phuket
3.16 Data collection�s areas of real estate development 74 3.17 Characteristics of qualified real estate development in Phuket 75
LIST OF TABLES (CONTINUED)
Table Page
3.18 The architecture style of the qualified real estate development in Phuket 76 3.19 The advertisement method employed by real estate development 77 3.20 Important level of product factors to real estate developer 78 3.21 Important level of price factors to real estate developer 79 3.22 Important level of place factors to real estate developer 79 3.23 Important level of promotion factors to real estate developer 80 3.24 Important level of person factors to real estate developer 81 3.25 Important level of physical evidence factors to real estate developer 81 3.26 Important level of process factors to real estate developer 82 3.27 Important level of each marketing mix factors among real estate developers 83 3.28 The relation of important level of marketing mix factors and gender of 85 sample respondents
3.29 The relation of important level of marketing mix factors and age of sample 86 respondents
3.30 The relation of important level of marketing mix factors and marital status 87 of sample respondents
3.31 The relation of important level of marketing mix factors and education level 88 of sample respondents
3.32 The relation of important level of marketing mix factors and occupation of 89 sample respondents
3.33 The relation of important level of marketing mix factors and income per 90 year of sample respondents
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3.34 The relation of important level of marketing mix factors and 91 nationality/hometown of sample respondents
3.35 Recommendation to real estate developer 92 3.36 Recommendation to the Thai government 95 3.37 The recommendation from real estate developer of real estate�s problem 96 3.38 The opinion of real estate developers toward this market group in Phuket 98
LIST OF ILLUSTRATIONS
Figures Page
1.1 Number of visitors to Phuket from 2002 - 2005 2 1.2 The tourism revenue for Phuket from 2002 - 2005 3 1.3 Long stay model 6 1.4 Type of Phuket residents housing during 2003 - 2005 21 1.5 The number of land transfers, including land with existing buildings 21 during 2005 - 2006 1.6 The number of high-end villa market and unit sold in Phuket 24 1.7 Model of buyer behavior 31 1.8 Maslow�s hierarchy of needs 35 1.9 Model of buying decision process 38
xiv
LIST OF ABBREVIATIONS AND SYMBOLS
BOI: Board of Investment CRM: Customer relationship management CPF: Central Provident Fund E-mail: Electronic Mail REIC: Real Estate Information Center SPSS: Statistical Package for Social Sciences URL: Universal Resource Locator UK: United Kingdom US: United States US$: US Dollars USA: United States of America WTO: World Tourism Organization (currently UNWTO) TAT: Tourism Authority of Thailand NSO: National Statistic Office
1
CHAPTER 1
INTRODUCTION
1.1 Background
Tourism is an important part of the Thai economy contributing almost
6 percent of GDP in 2002 (Thailand Outlook, 2005) and is vital to the economy of many tourism
provinces such as Phuket, Chiangmai, Bangkok. The hotel and restaurant sector alone accounts
for 3.8 percent of Thailand(s GDP, while on Phuket, this sector accounts for tourism accounts for
42 percent of the gross provincial product, a much higher share than any other province in
southern Thailand.
The Tourism Authority of Thailand (TAT) has continued to make Thailand
recognized globally as the -Tourism Capital of Asia.. Emphasis will be placed on quality tourism
services in its marketing drive in 2006. In order to achieve this aim, the TAT has set a target to
increase the number of international tourists to 15.12 million in 2006, bringing in 533 billion baht
in tourism income (see Figure 1.1). In 2006, Thais are expected to make 79 million domestic
trips, generating 380 billion baht in local tourism revenue. As for 2007, it is estimated that Thai
travelers will make 76 million domestic trips, distributing 340 billion baht throughout the country
(TAT, 2005).
In the last two decades, the number of foreign tourist arrivals to Thailand rose
significantly. In 2006, the total of 13,821,802 international tourists( arrivals at Bangkok
International Airport, which was a 20.01% increased from 2005. This increase is higher than in
2005 and 2004 and is a sign that travel to Thailand is returning to normal growth after the country
suffered through the after effects of the 2004 tsunami and other adverse circumstances. The top 5
countries coming into Thailand via the airport were Japan, Korea, China, the United Kingdom,
and the United States. (TAT, 2006).
2
Table 1.1 International Tourists Arrival to Thailand From 1997-2005
International
Tourist Average Average Expenditure Revenue
Number Change Length of Stay /person/day Change Million Change Year
(Million) (%) (Days) (Baht) (%) (Baht) (%)
1997 7.22 +0.41 8.33 3,671.87 -0.92 220,754 +0.63
1998 7.76 +7.53 8.40 3,712.93 +1.12 242l177 +9.70
1999 8.58 +10.50 7.96 3,704.54 -0.23 253,018 +4.48
2000 9.51 +10.82 7.77 3,861.19 +4.23 285,272 +12.75
2001 10.06 +5.82 7.93 3,748.00 -2.93 299,047 +4.83
2002 10.80 +7.33 7.98 3,753.74 +0.15 323,484 +8.17
2003 10.00 -7.36 8.19 3,774.50 +0.55 309,269 -4.39
2004 11.65 +16.46 8.13 4,057.85 +7.51 384,360 +24.28
2005 11.52 -1.15 8.20 3,890.13 -4.13 367,380 -4.42
Source: Tourism Statistic 2005 from Tourism Authority Thailand (TAT)
Figure 1.1 Number of Visitors to Phuket From 2002 - 2006
1
3
1,616,545
2,882,779
1,108,4441,209,5611,218,2381,087,704
2,766,350
2,688,499
3,432,741
1,266,900
-500,000
500,000
1,500,000
2,500,000
3,500,000
2002 2003 2004 2005 2006
Thai Foreigners
Source: Internal Tourism in Phuket 2005 - 2006 from Tourism Authority Thailand (TAT)
Figure 1.2 The tourism revenue for Phuket from 2002 - 2006
Source: Annual Report 2006 from Tourism Authority Thailand (TAT)
12,444
65,151
9,10813,48813,42811,381
19,073
72,182
59,83661,219
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2002 2003 2004 2005 2006
Thai Foreigners
4
Phuket has become a worldwide known first class tourist destination, attracting
visitors from all over the world. Some of those people dream about living here and owning some
property in Thailand. Development of property for international market has followed the path of
tourism development. Thailand(s growing economy has attracted a large number of foreign
investor in various fields of professional life. Many of foreign investors are visited by their
friends and relatives from abroad and use Bangkok as a staging point for traveling around the
country and also visiting the neighboring states of the Greater Mekong Sub region.
The islands of Phuket have seen as the major growth of high-end home
development in recent years. Phuket is one of the fastest growing property markets in the world.
All independent indicators predict that 2 million Europeans will seek property in Southern
Thailand during the next 10 years (Permpoolsab, 2006) As Thailand National Statistics Institute
predicts that immigrant population of Thailand will rise by as much as 5.5 million people by
2010. Therefore, rising demand for property will continue to fuel the growth of the Phuket
property market for many years to come.
Thailand has historically attracted long stay visitors from the industrialized
countries of the FNorth( as retirees and pensioners find it much more cost-effective to escape their
cold winters by staying relatively inexpensively in Thailand. This trend has accelerated in recent
years regarding to the strength of the Euro. Many retirement homes are coming up in parts of
Thailand to cater to this growing market segment (TAT, 2004).
Long stay visitors to Thailand are steadily on the rise, regarding to retirees and
visiting friends and relatives of the large expatriate community in the kingdom. According to
Tourism Authority of Thailand statistics, in 2004, a total of 568,620 visitors stayed in Thailand
for more than 30 days. This was up by 7.15% from 2003 and comprised 4.88% of total visitor
arrivals. The top five markets for long stay were Japan, United Kingdom, the United State,
Germany and China. Another major market is Sweden (TAT, 2004).
Phuket has high growing number of tourist arrivals, which attract significant new
foreign investment in tourism-related projects. In recent years, Phuket has become more than just
a spectacular holiday destination; it is now home to more than ten thousands of expatriates,
attracted by the tropical climate, stunning vistas and international standard facilities. The
5
Germans make up the largest contingent of Phuket's community of 12,000 expatriates out of a
total population of 292,245 (NSO, 2006).
There is a wealth of recent and new property development on the island, offering
a wide range of choices, from 7,000 baht-a-month rentals to multi-million baht sea view
mansions. Much of this development has taken particular care to blend in with the outstanding
natural scenery, complimenting, rather than blighting, the environment.
The real estate(s marketing strategies became essential to every developer
nowadays as it is an important tool in creating and keeping customers by communicating to and
giving the target market customers what they want, when they want it, where they want it, at a
price they are willing and able to pay (Lewis and Chambers, 2000). A strong and consistent
marketing message will help focus on the target market and highlights each real estate
competitive advantages.
After, reviewing of current marketing concept and journal, it found that long stay
tourists who comprised of tourists on holidays and expatriate are one of the major real estate
markets. Wade (2006) discussed that the service apartment market in downtown Bangkok is
expected to improve in the second half due to rising demand as reflected by the continued
increase in number of expatriate. The rising number of expatriates in Thailand is boosting the
demand for real estate. Moreover, according to the Alien Occupational Control Division of the
Departments of Employment, the number of expatriates holding work permit in Bangkok totaled
64,352 as of May 2006, up 16.1% year on year. It also found that much of the research
documented in tourism and hospitality journals have addressed issues of real estate and marketing
strategies but it has yet been given attention to the real estate marketing strategies to long stay
tourists and expatriates in Phuket. Wade also said that there is some problems that he see from
real estate developer as there are already too many developments on Phuket that are not
answering the demands of the buyer. Therefore, it creates the impression that real estate
marketing strategies to long stay tourists and expatriates should be analyzed.
This research will study the marketing strategies that real estate developments in
Phuket have been employed. Secondly, the researcher will investigate the preferable marketing
mix for long stay tourists and expatriates. After that, the result and recommendation will be
analyzed.
6
1.2 Related Literature
The study of real estate(s marketing strategies to foreign investor in Phuket has 5
literature review topics as follows.
1.2.1 Long stay market
1.2.2 Real estate market
1.2.3 Real estate market in Thailand
1.2.3.1Trends of real estate market
1.2.3.2 Factors influencing foreign investors( decision to
purchase the real estate
1.2.3.3 Legal framework
1.2.3.4 Foreign ownership problems
1.2.3.5 How can a foreigner own real estate in Thailand
1.2.3.6 The Thai government supporting roles
1.2.3.7 Real estate market in Phuket
1.2.4 Marketing strategies for real estate
1.2.4.1 Product
1.2.4.2 Price
1.2.4.3 Place
1.2.4.4 Promotion
1.2.4.5 People
1.2.4.6 Physical evidence
1.2.4.7 Process
1.2.5 Ideas and theories related to consumer behavior
1.2.5.1 Stimuli factors
1.2.5.2 The factor influence buyer behavior
1.2.5.3 Buyer decision-making process
1.2.6 Related research
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1.2.7 Conceptual research framework
1.2.1 Long stay market
The long stay tourism happened for many years ago. People from developed
countries that have a high income would travel in their own countries or aboard for their pleasure.
They take more time for staying. The long stay tourism has some unique requirement that
different from general tourism. When the general tourists have a good pleasure with their first
visiting, they will come back to visit again to stay longer. If they impress, they will come back
and be the longstay tourists (Chantarasuwan, 2003).
Figure 1.3 Longstay model
Tourists Stay Longer Longstay Permanent Stay
Source: Thammasat University, 2002
There was a previous research, which summarized long stay model as below (Na
Phairee, 2005).
a. Tourists: Tourists always spend the time for their pleasure between 7-10 days
and operate the tour programs by tour operator. The main purpose of the trip is for leisure.
b. Stay Longer: This group is normally used to be the tourists. They are very
impressed with that destination and are back to become the stay longer. They would spend 2-3
weeks longer. They may arrange their tour programs by themselves or by tour operator. Because
8
this kind of tourists spends their leisure time longer, therefore the tour operator may provide more
interesting package tour or Package Holiday Add-Ons for getting new experiences, which may
include Thai Cooking Class, Rural Area Tour Adventure, Flower Decoration Class etc.
c. Longstay: After become the stay longer, if the tourists are very impressed with
that destination, they will come back again and be the longstayers. This time they may spend at
least 1 month to 6 months. The characteristic of this group will change because they will arrange
the tour programs by themselves. They always arrange and make their own decision in terms of
their accommodation, meals, local transpirations etc.
d. Permanent Stay: If the tourists are very impressed with their previous
longstay, they will become permanent stay. They may spend one year at that place. However,
during their stay, they maybe back to their home country or travel to any other countries. The
characteristic of this group is the same as longstay because they will arrange the tour program by
themselves.
1.2.2 Real estate market
Real estate is defined as a piece of land, including the air above it and the ground
below it, and any buildings or structures on it. In this study, real estate is also including
residential home, apartment, villa etc. It is a dream now becoming reality for a growing number
of international investors: a tropical home in the sun, sometimes a way off the radar. Property
development has expanded exponentially over the past few years to include some of the world(s
most desirable locations, and ranking high on the list in Asia is Thailand, Bali, Hong Kong,
China, India and Malaysia (Life Style and Travel, 2007)
Below is the real estate market in different countries in the world in comparison
with Thailand real estate market.
Malaysia
The real estate market in Malaysia, Malaysia Institute of Estate Agents (2004)
briefly describe as follows.
9
Popular buying areas: There are many high - end residential property in the affluent Klang Valley
continues to dominate the residential market. Other popular residential areas are Bandar Utama,
Kota Damansara, Sunway Damansara, Mutiara Damansara and Langwaki.
Price ranges: Vary as ever by quality and popularity of area but Malaysia offers a very wide
spread of pricing bands. A 20% deposit of the house value is usually required.
Budgetary guide: Condominiums: from US$ 66,000 to US$ 250,000, Bungalow: from US$
66,000 to US$ 225,000, Two Storey Bungalow (5 to 7 bedrooms): US$ 396,000 to US$ 1.3
million, Luxury Villas: average US$ 925,000 upwards.
Overseas Investors: Foreign owners are permitted to buy up to two houses at a cost of not less
than US$ 66,000 each, which also entitles them to a housing loan from a local bank. If selling a
property they are subject to 30% Capital Gains tax.
Service Fees: Stamp, Transfer, Agreement and Registration Duty 1.5% to 1.75%, Loan
Agreement 1.5% to 1.75%, Estate Agents Fees 3% up to US$ 132,000 2% thereafter. Bank loan
processing fee US$ 13 US$ 53.
Mortgages: Loans of 60% of the purchase price are available to foreigners on the proviso that the
property value is RM 250,000 and above. Current Base Lending Rate 6.8% per annum; loans are
available up to a period of 20 years.
Singapore
The government of Singapore plays a strong interventionist role throughout the
society, including all segments of the real estate market. Institute of Estate Agents (2006) has
shown the situation of real estate in Singapore briefly as follows.
Popular Areas: Prime residential districts close to the Orchard Road shopping and entertainment
belt including Orchard, Tanglin, Holland and River Valley. Other attractions are Bukit Timah and
Hillview in the West and Tanjong Rhu on the East side.
Price ranges: US$ 90,000 rising to US$ 1.5 million, dependent on location, inner city real estate
in good areas is much more expensive. Annual Property Tax is 4% for wholly owner-occupied
residential properties and 10% for other properties based on the annual estimated rental value.
10
Budgetary guide: Apartments 2/3 bedrooms: US$ 90,000 to 220,000. Terraced houses: US$
140,000 to 250,000, Semi-Detached houses 3 to 5 bedrooms: US$ 170,000 to 350,000.
Bungalows 3 to 5 bedrooms: US$ 170,000 to 470,000. Luxury Bungalows: US$ 270,000 to
750,000.
Overseas Investors: Foreigners may purchase apartments in a building of any number of levels or
designated condominium development. Prior approval from the Singapore Land Authority must
be obtained to buy FRestricted property(, e.g. bungalows and houses with land.
Service Fees: Stamp duty and legal fees represent approximately 3% of the sale price. An FOption
to Purchase( demands a non-refundable payment of 1% of the purchase price for Fresale
apartments( and 5% for Foff plan apartments( which instigates a 14-day review period but forms
part of the mandatory 10% deposit if the sale proceeds.
Mortgages: A purchaser of a Fprivate residential property. can now secure a loan of up to 90% of
the lower of the valuation or purchase price. The deposit of 10% can be paid as 5% in cash and if
applicable 5% drawn from the Central Provident Fund (CPF). Interest rates average between 2
and 3.5 % per annum dependent on loan type.
Spain
The National of Realtors Association (2005) described the real estate situation in
Spain briefly as follow.
Popular areas: Focus on beach resort/island based homes. The Costa(s Del Sol, Dorada & Blanca;
Majorca, Minorca and the Canaries are favourites. Barcelona and Madrid are beautiful city
locations. Budget properties are normally found inland.
Price ranges: Varied dependent on location. Budget inland property will normally need
refurbishing and it is wise to check the electricity supply before purchasing.
Budgetary guide: Villa(s: Euro 350,000+, Town houses: Euro 240,000+, Apartments (Costa Del
Sol + 15% and add for Canaries, Majorca etc) Euro 270,000 + Rural houses: Euro 120,000
to 200,000+, Finca(s/renovation: from Euro 36,000.
Buying Property: As prices are agreed both parties should sign a Contrato privado de
compraventa (preliminary contract), a 10% deposit pending finance is required. Deeds change
11
hands after signing an Escritura de compraventa, (definitive contract).
Service Fees: Overall 10% of sale price: Stamp Duty 7% (Canary Islands 4.5%), Legal fees 1%,
and registration documentation fees 0.5%. A location variable Local Authority services charge
applies. Overall includes Notary fees.
Mortgages: Spanish mortgages can be arranged in Euro & Sterling either on a Repayment or
Endowment basis. Minimum loan amount is E´s 75,000 to be paid up by age 70 over a 5-25 year
term. The mortgage is secured on the property in Spain.
United Kingdom
The National Association Estate Agents (2006) noted the real estate information
in the United Kingdom as below.
Taxes: The favorable tax dispensations enjoyed by foreign investors and non-resident UK
expatriates are designed to make the UK an attractive investment haven. Local Council tax is
applicable on all property covering services.
Popular areas: London and the cities of Manchester, Bristol and Leeds are major markets. The
more rural areas of the South Coast, West Country, Cotswold(s, Lake District, Yorkshire
Dales and Scotland & Wales are also very popular.
Price ranges: The national average increase in property prices in 2002 was 28% but has slowed.
Prices vary significantly from North to South.
Budgetary guide: Detached houses (2 floors): GBP 130,000 - 600,000, Semi-Detached houses (2
floors): (South) starting GBP 112,000 (North) 65,000, Bungalows (1 floor): (South) starting GBP
85,000 (North), 65,000, Rural cottages (South) starting GBP 90,000 (North) 75,000. London
Apartments: from GBP 200,00.
Buying Property: The buyer makes an offer subject to survey and contracts. As contracts are
exchanged a 10% deposit becomes due, which will be held by the vendor(s lawyer. At this point
the buyer is legally bound to complete the purchase.
Service Fees: Overall 4% of sale price: Stamp Duty 1-2% from GBP 60k to 250k, 3% from
GBP 250K legal fees, documentation fees included in overall.
12
Mortgages: Overseas buyers can obtain mortgages from 70 to 80%, (UK residents up to 95%)
spread over a 25 years according to age on a Repayment or Endowment basis.
Australia
Real Estate Institute of Australia (2006) provides comprehensive real estate
information as below.
Taxes: Capital gains tax applies to 100 per cent of the profit made on investment properties. Tax
dispensations applicable to investors can be readily identified through a solicitor, however all
maintenance, council and water rate charges can be offset against CGT.
Popular areas: Sydney and Melbourne accommodate a high percentage of the country population
and are sought-after investment locations. The Gold Coast as a major tourism center is very
popular in terms of property investment. However, in 2004 growth is apparent in many other
areas.
Price ranges: Depend on style and location, but will accommodate most budgets. Real estate is
relatively expensive in the larger cities, peaking in Sydney.
Budgetary guide: Detached houses range from AUS$ 485,000 to AUS$ 865,000, semi-detached
or terraced houses from AUS$ 300,000 to AUS$ 675,000, townhouses between AUS$ 200,000
and AUS$ 550,000. Three-bedroom luxury apartments cost approximately AUS$ 580,000.
Equally property starts at AUS$ 150,000 in some areas.
Overseas investors: May purchase land earmarked as residential, but building must commence
within one year, and are also free to buy from new and work-in-progress developments (up to a
maximum of 50 per cent foreign ownership of availability). Purchases of existing property require
F.I.R.B. approval, which is not generally given, unless you already have permanent residence
status.
Service fees: Stamp duty varies from state to state. In Victoria off-plan stamp duty is calculated
based on the value of the land associated with the property, which can be as low as five per cent
of the duty post construction. Conveyance charges are usually in the region AUS$ 900. A body
corporate fee applies to townhouses and apartments. Property management fees represent around
six to seven per cent of the rental return.
13
Thailand
Thai Appraisal Foundation (2006) states that demand for new housing had
dropped slightly in 2007, because homebuyers were delaying their buying decisions, since
interest-rate hikes and rising oil prices had increased their cost of living. Moreover, it has shown
the real estate situation in Thailand briefly as follows.
Capital Gains Tax: There is no capital gains tax for private investors and low ongoing costs.
Popular buying areas: Phuket, Pattaya, Hua Hin, Koh Samui and Chiang Mai remain popular
locations and a crop of new luxury developments are in progress aimed at foreigners. Bangkok is
generally for expatriates who live and work in Thailand and high end business investment in
prestigious projects.
Price ranges: Property prices are rising in line with the current economic outlook but range
between U.S. $ 80,000 and 5 million and are dictated by the standard of building and location.
Condominium projects in central Bangkok and luxury resort developments in Phuket and Pattya
tend to be high value purchases.
Budgetary guide: Apartments: 2 bedroom from US$ 160,000, 3 bedroom from US$ 200,000, 4
bedroom deluxe villa US$ 425,000, 5 bedroom deluxe villa US$ 505,000, High Quality House:
U.S. $ 85,000 to US$ 168,000. Basic apartments start from US$ 34,000 to two bed houses at US$
85,000.
Overseas Investors: Despite legislation to the contrary, foreign owners can acquire property on a
finite (50 years) or renewable (30 + 30 years + extension) leasehold basis or through a Thai
company with a foreign joint venture partner.
Service Fees: Stamp Duty 0.5%, Special Business tax 0.11% (Vendor has owned property for
under 5 years), -Income Tax. 1 to 3%( local version of VAT) & transfer fees 0.01%
of sale price
Mortgages: Mortgages usually not available to foreigners, but developers often arrange local
loans of up to 90% with the actual property as the loan guarantee.
14
1.2.3 Real estate market in Thailand
1.2.3.1 Trend of real estate market in Thailand
Andrew (2006) described that Thailand is gaining a reputation as a favorite
location for luxury tropical homes. Property developments aimed at the region(s upscale
expatriate market are taking root at various sites around the country. Many of these buyers have
been living in the region for a long time. They are an international group, hailing from America,
Asia, Australia and Europe. Some are planning to live in paradise full-time, some are planning to
use their property as a holiday villa and others are buying for investment purposes to make money
from holiday rentals.
Thai Appraisal Foundation (2004) states that Real estate in Thailand can be
categorized into 3 types, which are commercial, industrial and housing. Most demand is for
housing, which makes up 70% of the industry. The real estate business has followed a fluctuating
up and down cycle in tandem with fluctuations in the overall economic climate and the national
financial situation, since land and buildings are basic need for all types of investment. The real
estate business tends to follow a three - year boom and bust cycle as indicated below:
DOWN 1985 Land Developers( Suffering
(Baht devalued, limited economic growth, credit limit of 18%,
high interest rate, MLR = 16.5%)
UP 1998 Golden Year for Speculators
(High liquidity, easy credit for real estate low interest rate, MLR = 11.5%)
DOWN 1991 Golf Courses and Offices Fail
(Impacts of Gulf War, falling Set Index and high interest rate, MLR=16.25%)
UP 1994 Golden Year for Consumers, Set Index soars
15
(Easy credit available for home buyers, low interest rate, MLR= 11.0%)
DOWN 1997 - 1998 Real Estate Crisis
(No new credits for real estate, shut down finance companies,
Baht float, MLR= 16.0%)
UP 2000-2005: Since the start of 21st century, the real estate business became
significant as it pays more attention on foreign markets.
The real estate market in Thailand has suffered through a serious recession dating
from 1996. In Bangkok alone, there were 330,000 empty residential housing units out of a total of
1.76 million surveyed by the Thai Government Housing Bank in 1999 - a 20% vacancy rate for
the nation's political and economic capital. A major international real estate company active in
Thailand has estimated that it could take 5-10 years for a recovery in property values to take
place.
The government of Thailand is actively trying to support growth in the
residential market by providing from 1999 long-term fixed rate mortgage financing through the
Government Housing Bank and the Secondary Loan Mortgage Corporation. Alterations in rules
regarding leases and changes in laws on foreign investment in property were also undertaken by
the government in 1999 to stimulate investment and growth in both the residential and
commercial real estate markets.
Until 2005, the demand for industrial property in Thailand grew significantly,
according to international property consultants CB Richard Ellis. The total amount of industrial
land sold in 2005 was 4,008 rai (1,603.2 acres), which is the highest record of industrial land sales
since 1999. Since no new supply was added to the market after the second quarter, the vacancy
rate dropped to 15.6 per cent.
The total number of projects that have started operations from the Board of
Investment (BOI) in 2005 was 359 projects, a 28 per cent increase from the 281 projects the year
before. The total value of investment in these projects increased by 23 per cent to 102 billion
baht, compared to 83 billion baht in the same period last year. The industrial property market in
2005 continued to grow as a result of both international and national market starting a new
investment cycle. The majority of foreign investment is still from Japanese companies. (Cripps,
2006)
16
1.2.2.2 Factors influencing foreign investors. decision to purchase the real estate
Many of foreigners enjoy living in Thailand. Some even describe it as -Heaven
on Earth.. Thai people, by nature, are pleasant and nice, and are able to get along easily with
foreigners, which has resulted in Thailand becoming known as -The land of smiles.. Thai people
are service minded and are taught from young how to take good care of other people, especially
the elderly. The pastimes that Thailand offers foreigners may include golfing, yachting, diving
and massage. It is easy to find a great variety of cheap and delicious local foods as well as a wide
range of international cuisine. People in Thailand can easily find human resources, from maids to
do the housework to educated personnel to take senior roles in companies.
Moreover, domestic infrastructure, such as electricity, water supply and
telecommunications are well established in the major cities. Whilst there can be no guarantee
against natural disasters, Thailand is not susceptible to earthquakes or typhoons. Furthermore, At
present, prices of properties in Thailand have dropped 25 - 50% depending on different products
and locations. Prices for properties in high-rise buildings in Thailand are probably the lowest
compared to equivalent properties of a similar location and quality in the big cities around the
world (Asia-Pacific Tropical Homes, 2003).
Almost all of the new high-rise buildings in Thailand are built to an international
standard including safety, facilities and quality. For example: The average selling prices of
condominium units in central city of Bangkok are around 81,597 baht/sq.m. (Raimond Land,
2006) compared to 4 times higher prices in nearby countries such as Hong Kong or Singapore.
The era of globalization will bring unlimited opportunities into Thailand. Being
the center of Southeast Asia and also being the center of the triangle among major developed
countries: Europe, Australia, and Far-East Asia, Thailand is perfectly placed geographically, and
has gradually become an established center for transportation, communications, trades and
finance for South-East Asia. In recognition of this, we can see more and more international
companies setting up their regional offices in Bangkok and manufacturing bases in Thailand
(Asia- Pacific Tropical Homes, 2006).
17
1.2.3.2 Legal Framework
Political environment
Asia Land (2006) discussed that Thai law stipulates that foreigners may not
personally own land in Thailand. That is to say in their name. However, they have the right of
freehold ownership on their own name of building(s) only. If a foreigner wishes
to purchase land or build a property in Thailand. There are 2 options as belows:
1. The land is purchase on 30 years leasehold, with an option to extend the lease
for further 2 of the 30 year periods (90 year in total). Possession of the fact the property occupies
of the land. The lessor cannot seize the property upon expiration of the
lease, as the property is separate from the land.
2. If a foreigner is going to operate a business in Thailand then he may purchase
the freehold of the land through his Limited Company. The land will be owned by the company,
not the individual. The foreigner then exercises complete control and ownership.
Even recent amendments that allow a Thai spouse (male or female) of a
foreigner to buy land require proof that the money used in the purchase of freehold land is a
legally solely theirs with no foreigner claim to it
Legislative changes to promote foreign investment
To solve economic and financial problems, the Thai government decided to
promote foreign investments thorough several measures: i.e. the proposed change of The Alien
Business Act to allow foreigners to do many more variety of businesses, to promote permanent
resident permit, to extend the length of the rent of properties, and to allow foreigners to own
100% of high - rise buildings in BOI promoted condominium projects which can encourage
more foreign investment.
18
1.2.3.4 Foreign ownership problems
There is a law to limit foreign purchase of freehold land, but beyond that
Foreigners are only allowed to own land in Thailand under very restricted conditions and in very
small amounts. The legislation of the Amending Land Code 1999 permits foreign investors who
bring at least US$1 million into the country to own one plot of land for their personal use. The
plot cannot be larger than 17,000 square feet (1,600 square meters) and cannot be coastal land.
Foreigners are allowed to own condominiums. The 1999 Condominium Act
increased the percentage of units in a condominium development that can be held by foreign
ownership to 49%. All of the money used to purchase condominium(s) must be brought into the
country, i.e. wired from a foreign bank to a Thai bank. The foreign purchaser must than make
sure to obtain what is called a Tor Tor 3 certificate from the Thai bank as this proof of the
international fund transfer must be presented to the land department as part of the transfer of title
process (Prakunhangsit,1999).
Previous to 1998, Thai women lost their right to own land upon marriage to a
foreign national. This was changed in 1998 and Thai women retain legal right to land ownership
regardless of the nationality of their marriage partner. Foreigners should remember though that
marriage to a Thai national of either gender does not affect the restrictions on their personal
ability to purchase and own land.
1.2.3.5 How can a foreigner own real estate
People not resident in Thailand who wishes to own a home, which for all intents
and purpose is a land and house package, can do with the help of a legal and tax professional.
Most company registrations can be done through a law firm at prices starting from around Bt
50,000.- for setup and Bt. 7,000 for each million in registered capital.
Under the strict interpretation of the law, a foreign individual is not entitled to
own land, unless special approval has been granted by the Interior Ministry or other government
body. (i.e. a privilege has been received from the Board of Investment of Thailand or the
19
Industrial Estate Authority of Thailand, which will not apply for most residential property
transactions considered here)
A popular way to complete a house and land acquisition is to form a Thai
Limited Company, which owns the property you wish to buy. A brief introduction about the
procedure to set up a Thai Limited Company is detailed below.
Three basic procedures exist for setting up a Limited Thai Company:
1. Reservation of the name
Firstly the proposed name is required to be reserved for use as the Company's
name with the Ministry of Commerce, in order to ensure that the proposed Company name is not
identical or similar to the name of any other registered Company.
The name reservation application is required to be signed by any one of the promoters.
2. Filing the memorandum of association of the company
Once the Company's name has been approved by the registrar, during the validly
period of 30 days, the promoters shall apply for the registration of the Memorandum of
Association. At this stage at least 7 individuals are required as promoters, of which at least 4 must
be Thai nationals.
The Memorandum of Association must contain the following information:
- Name and the location of the Company;
- The objectives of the Company;
- Registered Capital, number of securities and par value;
- Name, address, occupation, nationality, age, and signature of each promoter
and the number of shares subscribed to by each of the shareholders.
There is no minimum capital requirement. However the fee for registering the
memorandum is set at Bt 50 per registered capital of Bt 100,000 subject to a minimum fee of Bt
500
3. Registration of incorporation of the company
20
Following the registration of the Memorandum of Association all shares must be
subscribed to by shareholders and all promoters must hold at least 1 share. At least 25 % of the
value of each share is required to by law to be paid up.
The promoters shall then hold a general meeting of all subscribers, which is called the "Statutory
Meeting".
The promoters are required to send to every subscriber a notice of the Statutory
Meeting together with a statutory report at least 7 days before prior to the meeting-taking place.
The notice of the Statutory Meeting shall contain the agenda of all business to be transacted.
Normally the business to be transacted at the Statutory Meeting is as follows:
• Adoption of the Articles of Association of the Company;
• Ratification of the promoter(s actions and expenses
• Consideration of the amount to be paid to the promoters;
• Appointment of the directors and authorized directors;
• Establishment of preferred Shares (if any);
Consideration of the number of shares to be allotted as fully or partially paid up other than money and
the initial paid up capital for the shares payable in money; and appointment of Auditors and the
determination of their consideration.
Following the Statutory Meeting, the directors shall run the business of the
Company. The directors shall call for the payment for the shares to be made in money in the amount
determined at the Statutory Meeting. After the payment for the shares have been made, the authorized
director(s) must apply for the registration of the Articles of Association of the Company. In practice
the Articles of Association can be submitted 10 days after the date of registration of the Memorandum
of Association. It will normally take at least 3 - 5 working days for the Registrar to consider the
Articles of Association and the list of shareholders. (The promoters are required to hold at least one
share each). The completion of the incorporation of a Limited Company takes approximately 3 - 4
weeks.
21
1.2.3.6 The Thai government supporting role to real estate
The Thai government tries to support the real estate by providing various kinds
of helps as following.
The Real Estate Information Center
One of the governments of the time's major initiatives following the
unprecedented 1997 economic crisis was to establish institutions that would provide accurate
information in a central location in order to mitigate the effects of any cyclical industry downturn,
particularly in real estate. "The Real Estate Information Centre operates as a central repository for
real-estate data and information," explained former REIC director Pongsak Chewcharat. "The
REIC conducts field surveys and research to gather currently uncollected data that can be used to
construct supply, demand and price indices that can be used to evaluate the current Thai real-
estate environment"
Board of Investment (BOI)
The Board of Investment (BOI) is the Thai government agency responsible for
attracting investment to Thailand by offering a wide range of tax and non-tax incentives to
investors to engage in specific kinds of projects.
The following are the most common incentives granted by BOI.
1. Corporate income tax exemption, reductions and special carry forward loss
provision.
2. Custom duties reductions and exemptions for law materials and machinery.
3. Permission for foreigners to own land in order to carry out.
4. Special rights with regard to the issuance of work permits and visas
5. Special rights with regard to operating as foreign held company.
22
1.2.3.7 Real estate market in Phuket
Phuket is Thailand(s largest and most beautiful island, which connected by
bridges to southern Thailand(s Andaman seacoast. Because of its beautiful nature Phuket is also
known as -The Pearl of the South.. It is surrounded by 32 smaller islands. About 70 percent of
Phuket is mountainous and the remaining 30 percent of the island. The island is divided into 3
districts, Thalang in the north, Kathu in the west, and Muang in the south (Phuket Tourism,
2006). The area of the municipality is 15,640 squared Kilometers with a total population of more
than 264,800 which comprised of who is registered as living in Phuket and thousand of
expatriates. Phuket real estate market started showing the characteristics of a boom around mid
2003 and it had accelerated since then (Bangkok Post, 2006).
According to Kiatnakin housing survey, it showed that the majority of Phuket
residents own town home and single home, which accounted for 38 percent and 33 percent
respectively (Table 1.3). The survey also shows that the price ranges most in demand for Thais
were between 500,000 - 3,000,000 baht. Table 1.4 shows the results of the number of land
transfers, including land with existing buildings during 2005 - 2006 which can be explained that
number of land transfers, including land with existing building in Kathu district was stable.
Unlike, the numbers of land transfers, including land with existing building in Talang district as
there have been many new real estate projects in Talang district during 2005 - 2006.
23
Figure 1.4 Type of Phuket residents housing during 2003 - 2005
Source: Hongyok, 2007
Figure 1.5 The number of land transfers, including land with existing buildings
during 2005 - 2006
Muang Talang District Kathu District
Source: Phuket Land Department, 2007
38%
33%
10%
3%16%
Town House
Single Home
Twin Homes
Shop House
Land
24
Although individuals have been constructuring holiday homes in Phuket for
many years, the first significant development targeting foreign purchasers was Allamanda
condominium launched in Bang Tao Bay in 1991 and marketed overseas by CB Richard Ellis.
The majority of purchasers were based in Hong Kong and Singapore. The financial crash in 1997
halted development in resorts, but activity resumed in 2000 and has been growing rapidly ever
since (The Nation, 2006). However, Simister (2007) discussed that the market has changed since
early days, with more first-time buyers from Europe and the UK.
According to Property Report (2007), there is growing demand for villas and
condominium particularly for long stay tourists. There is also a growing demand from tourists to
own their own resort properties in Thailand. Ellis (2007) revealed that resort property
development is an extension of the tourist industry and is an important element in attracting high
income short and long-term stay tourists.
There is a huge range of sizes, prices and qualities of properties in Phuket. The
land price will almost certainly be the most significant part of the cost. Beachfront or ocean view
properties command significant premiums, and one can expect to pay over 30 million baht for a
quality beachfront house. But despite the high cost, these properties continue to be one of the best
investments and are always the easiest to resell, even during periods of market weakness.
The cheapest properties to be found on the island, such as small 2 bedrooms
homes, can be found for under 4 million baht and are found in the housing estates in the east and
central part of the island. The low prices are achieved through a very small land plot size, simple
construction and basic finishing. Phuket has a great deal to offer to the foreign investor looking to
purchase property in Phuket. Its natural charm and beauty combined with a superior geographic
location set in an enchanting island paradise, afford an enviable lifestyle. Moreover, there are
many factors that influence the foreign investor to buy the real estate in Phuket as below (Tropical
Living, 2006).
Yachting: There are three marinas in Phuket and more currently under
construction. Moreover, the import and luxury taxes on foreign flagged vessels were reduced,
greatly increasing the number of boats in Thai waters. A full range of services is available for
25
yachts and owners find Phuket much more affordable than elsewhere in the world with lower
costs for labor, fuel and maintenance.
Golf: There are currently five golf courses on Phuket. Although Phukets golf
course clubhouses lack the luxury amenities to accommodate high-end players, most of Phuket(s
golfers are satisfied with the facilities available.
Other water sports: Diving, snorkeling, water-skiing and jet skiing all make for
a great day(s entertainment and Phuket(s unique geographical position means year round diving
and snorkeling are possible.
Spa: There are many luxurious spas that provide unrivalled pampering for
women and men. Thailand(s wealth of natural ingredients, holistically minded therapists, and
tourism-focused capitalism has resulted in a boom for the spa industry
Natural Beauty: Phuket has beaches, islands, jungle and waterfalls. These
entire make for a fantasy island and it is also the kind of beauty that Europe cannot offer.
The Thai people: Thailand is the land of smiles. Thailand serves its own brand
of hospitality that is renowned worldwide.
Dining, Wine and gourmet foods: Phuket has a good range of international
cuisine available. Wine stores, bakeries and imported foods can be found in many shops.
Service: Due to the increased demand in Phuket for home services for foreign
home owners, there is growing availability of qualified people in home management. There are
some human resources training which help Phuket(s work force meet the challenge of catering to
a more upscale and demanding market.
Health: Thailand has excellent medical services for a fraction of the costs of
western institutions. In Phuket, cosmetic surgery, optometry and dentistry are widely available
and extremely affordable when compared to Western prices.
Access: Phuket International Airport connects the island to Asia(s biggest hub,
Bangkok, by way of numerous daily flights and international connections are increasing.
In conclusion, Phuket has many attractive features for foreign investors to live
here.
26
Figure 1.6 The number of high-end villa market and unit sold in Phuket
0
100
200
300
400
2000 2001 2002 20003 2004
Available units Sold units
Source: Nexus Property Consultants, 2005
1.2.4 Marketing for Real Estate
Research that attempts to classify people(s internal motives and behavior is
called psychographic research (Chon & Sparrowe, 2000). Hospitality promoters use of
psychographic research data to decide which market segments to target and what kinds of
amenities to offer at a location. All psychological motives can be classified as either basic or
secondary. Basic motives influence everyone and include unlearned needs such as thirst, hunger,
sex, fear, and avoidance of pain. Secondary motives are learned needs and include achievement,
desire for power, and other specialized needs. Secondary motives usually vary from person to
person.
The marketing concept has been defined as a process of achieving organizational
goals through determining in the needs and wants of target markets and delivering the desired
satisfaction more effectively and efficiently than competitors do (Kotler, 2003). Marketing
strategy serves two purposes: (1) it helps determine the nature of business the firm should engage
27
in now and future, and (2) It provides a plan to allocate resource to compete successfully in
chosen market (Hawkins, Roger and Kenneth, 1983).
Allardyce (2003) identified that marketing strategies can help establish a
business framework which can put the business to faster track to growth. Moreover, Sussman
(2006) discussed some marketing strategies for real estate as bellows,
Marketing Strategy 1: Gain Customer Confidence. Customer indecisiveness,
skepticism, indifference, or confusion is the obstacle in real estate sale. Therefore, the real estate
firm should clearly communicated and add value to the target customers in order to win their
confidence.
Marketing Strategy 2: Penetrate awareness of the target audience by using
integrated marketing. In other words, the more ways the public hears about the real estate firm,
the better chances are for achieving brand recognition, credibility, and greater market share.
Marketing Strategy 3: Sincere enthusiasm. If the real estate(s marketers deeply
believe in their products, services, company, and themselves, then their customer will pick up on
that passionate attitude and feel confident and optimistic about doing business with them.
Marketing Strategy 4: Dispel distrust. Gain customer confidence and overcome
potential feelings of distrust by offering written guarantees of satisfaction whenever possible,
customer testimonials, references, and by joining respected and well-known professional
organizations, such as Chambers of Commerce, and industry associations.
Marketing Strategy 5: Create a business marketing plan to identify and capitalize
on the strengths and opportunities. The marketing plan should also take into account factors such
as weaknesses, external threats, real estate firm(s marketing mix strategy.
The marketing mix was originally developed by Professor Neil Borden of
Harward in what have come to known, through subsequent alteration, as the -Four Ps.. Borden(s
six original elements are product planning, pricing, distribution, promotion, servicing and
marketing research. It were later reduces to four elements by McCarthy (Chambers and Lewis,
2000). Nevertheless, the marketing mixes later were expanded to -Seven Ps. by Booms and
Bitner (Gronroos, 2006). The 3 additional Ps to the original marketing mix are people, process
and physical evidence. The marketing mix involves the developing and implementing of an
appropriate mix of marketing activities direct toward market segments and target markets. This
28
activity includes the creation and presentation of products and services; the method used to get
the customer through this products and services (or vice versa) for an appropriate price; and the
various techniques employed to communicate with customers. Therefore, marketing mix is
comprised of seven sub mixes as below:
1.2.4.1 Product mix
It is the combination of product and services, whether free or for sale, that are
aimed at satisfying the needs of the target market. Kotler (2003) devised a very interesting
concept of benefit building with a product. Kotler suggested that a product should be viewed in
three levels.
Level 1: Core Product. What is the core benefit your product offers?. Customers
who purchase a camera are buying more then just a camera they are purchasing memories.
Level 2 Actual Product: All cameras capture memories. The aim is to ensure that
your potential customers purchase your one. The strategy at this level involves organizations
branding, adding features and benefits to ensure that their product offers a differential advantage
from their competitors.
Level 3: Augmented product: What additional non-tangible benefits can you
offer? Competition at this level is based around after sales service, warranties, delivery and so on.
John Lewis a retail departmental store offers free five year guarantee on purchases of their
Television sets, this gives their `customers the additional benefit of Fpiece of mind( over the five
years should their purchase develop a fault.
1.2.4.2 Price
Pricing is one of the most important elements of the marketing mix, as it is the
only mix, which generates a turnover for the organization. It is difficult and must reflect supply
29
and demand relationship. Pricing a product too high or too low could mean a loss of sales for the
organization.
An organization can adopt a number of pricing strategies. The pricing strategies
are based much on what objectives the company has set itself to achieve (Keegan and Green,
2000).
1. Penetration pricing: Where the organization sets a low price to increase sales
and market share.
2. Skimming pricing: The organization sets an initial high price and then slowly
lowers the price to make the product available to a wider market. The objective is to skim profits
of the market layer by layer.
3. Competition pricing: Setting a price in comparison with competitors.
4. Product Line Pricing: Pricing different products within the same product range
at different price points. An example would be a video manufacturer offering different video
recorders with different features at different prices. The greater the features and the benefit
obtained the greater the consumer will pay. This form of price discrimination assists the company
in maximizing turnover and profits.
5. Bundle Pricing: The organization bundles a group of products at a reduced
price.
6. Psychological pricing: The seller here will consider the psychology of price
and the positioning of price within the market place.
7. Premium pricing: The price set is high to reflect the exclusiveness of the
product. An example of products using this strategy would be Harrods, first class airline services,
Porsche etc.
8. Optional pricing: The organization sells optional extras along with the product
to maximize its turnover. This strategy is used commonly within the car industry.
30
1.2.4.3 Place or distribution
Lowe and Doole (2001) refers place as how an organization will distribute the
product or service they are offering to the end user. The organization must distribute the product
to the user at the right place at the right time. Efficient and effective distribution is important if
the organization is to meet its overall marketing objectives. If organization underestimates
demand and customers cannot purchase products because of it profitability will be affected.
Distribution Strategies depend on the type of product being distributed there are
three common distribution strategies available:
1. Intensive distribution: Used commonly to distribute low priced or impulse
purchase products. For example, chocolates, soft drinks etc.
2. Exclusive distribution: Involves limiting distribution to a single outlet. The
product is usually highly priced, and requires the intermediary to place much detail in its sell. An
example of would be the sale of vehicles through exclusive dealers.
3. Selective Distribution: A small number of retail outlets are chosen to
distribute the product. Selective distribution is common with products such as computers,
televisions household appliances, where consumers are willing to shop around and where
manufacturers want a large geographical spread.
1.2.4.4 Promotion
This includes advertising, sales promotion, publicity, and personal selling, and
refers to the various methods of promoting the product, brand, or company
Palmer (2001) stated that an organizations promotional strategy consists of five
different methods as belows:
1. Advertising: Any non-personal paid form of communication using any form
of mass media. The advertising objective is a specific communication task to be accomplished
with a specific target audience during a specific period of time.
31
2. Public relations: Involves developing positive relationships with the
organization media public. The art of good public relations is not only to obtain favorable
publicity within the media, but it is also involves being able to handle successfully negative
attention.
3. Sales promotion: Sales promotion commonly used to obtain an increase in
sales of short-term incentives. It could involve using money off coupons or special offers. Sellers
may use consumer promotions to urge short-term customer buying or to enhance long-term
customer relationships.
4. Personal selling: Personal selling is the most effective tool at certain stages of
the buying process, particularly in building up buyer(s preferences, convictions, and actions. It
involves personal interactive between two or more people, so each person can observe the other(s
needs and characteristics and make quick adjustments.
5. Direct Mail: Direct mail is a direct marketing, which allows an organization to
use their resources more effectively. This can be done by sending publicity material to a named
person within their target segment by personalizing advertising, response rates increase thus
increasing the chance of improving sales.
1.2.4.5 People
People is any person coming into contact with customers can have an impact
overall satisfaction. It is the most important element of any service or experience. Services tend to
be produced and consumed at the same moment, and aspects of the customer experience are
altered to meet the 'individual needs' of the person consuming it. Most of us can think of a
situation where the personal service offered by individuals has made or tainted a tour, vacation or
restaurant meal.
32
1.2.4.6 Physical evidence
Unlike a product, a service cannot be experienced before it is delivered, which
makes it intangible. This, therefore, means that potential customers could perceive greater risk
when deciding whether or not to use a service. To reduce the feeling of risk, thus improving the
chance for success, it is often vital to offer potential customers the chance to see what a service
would be like. There are many examples of physical evidence, including packaging, Internet/web
pages, paperwork (such as invoices, tickets and dispatch notes), brochures, furnishings, uniforms,
business cards and the building itself (such as prestigious offices or scenic headquarters)
1.2.4.7 Process
Process is another element of the extended marketing mix, or 7P's.There are a
number of perceptions of the concept of process within the business and marketing literature.
Some see processes as a means to achieve an outcome, for example - to achieve a 30% market
share a company implements a marketing planning process (Chambers and Lewis, 2000).
Another view is that marketing has a number of processes that integrate together
to create an overall marketing process, for example - telemarketing and Internet marketing can be
integrated. A further view is that marketing processes are used to control the marketing mix, i.e.
processes that measure the achievement marketing objectives. All views are understandable, but
not particularly customer focused.
For the purposes of the marketing mix, process is an element of service that sees
the customer experiencing an organization(s offering. It's best viewed as something that your
customer participates in at different points in time. For example, booking a flight on the Internet -
the process begins with the customer visiting an airline's website. Then the customer enters details
of their flights and books them. The ticket/booking reference arrives by e-mail or post. Therefore,
33
the customer catches their flight on time, and arrive refreshed at their destination. This is all part
of the marketing process.
1.2.5 Consumer markets and buyer behavior
Successful marketing begins with understanding why and how consumers
behave as they do. Berkowitz (1994) refers that consumer behavior is the actions a person takes in
purchasing and using products and services, including the mental and social processes that
precede and follow these actions. Wood (1994) said that -Behavior. is characteristic of each
person influences and reflects a society(s values, beliefs and preferred ways of organizing social
life based on the social significance of being male or female. As individuals are socialized into
their culture, they learn to express their masculinity or femininity in social interactions.
The starting point for understanding consumer behavior is stimulus response model. Marketing
and environmental stimuli enter the buyer(s consciousness. The buyer(s characteristics and
decision processes lead to certain purchase decision. The marketer(s task is to understand what
happens in the buyer(s consciousness between the arrival of outside stimuli and the purchase
decisions.
Figure 1.7 Model of buyer behavior
Marketing
stimuli
Other
stimuli
Buyer(s
characteristic
Buyer(s
Decision process
Buyer(s
decisions
Product
Price
Place
Promotio
n
Economic
Technologic
al
Political
Cultural
Cultural
Social
Personal
Psychologic
al
Problem
recognition
Information search
Evaluation of
alternatives
Purchase decision
Post purchase
Product
Brand choice
Dealer choice
Purchase
timing
Purchase
amount
34
behavior
Source: Kotler, (2003).
1.2.5.1 Stimuli factors
Jain (2003) stated that there are six majors force: demographic, economic,
natural, technology, political-legal and social-cultural, which lead to certain purchasing decision
as below.
1. Demographic environment
The first macro environmental force that marketers monitor is population,
because people make up markets. Marketers are keenly interested in the size and growth rate of
population in cities, regions and nations; age distribution and ethic mix; educational level;
household patterns; and regional characteristics and movement.
2. Economic environment
Markets require purchasing power as well as people. The available purchasing
power in an economy depends on current income, prices, saving, debt and credit availability.
Marketers must pay close attention to major trends in income and consumer-spending patterns.
3. Natural environment
The deterioration of the natural environment is a major global concern.
Therefore, marketers need to be aware of the threats and opportunities associated with four trends
in the natural environment: the shortage of raw materials, especially water; the increased cost of
energy; increased pollution levels and the changing role of government.
4. Technological environment
35
Every new technology is a force for creative destruction. The economy(s growth
rate is affected by how many major new technologies are discovered. New technology also
creates major long run consequences. Therefore, the marketer should monitor the following trends
in technology changed.
5. Political-legal environment
Marketing decisions are strong affected by developments in the political and
legal environment. This environment is composed of laws, government agencies and pressure
groups that influence and limit various organization and individuals. Sometimes these laws also
create new opportunities for business
6. Social-cultural environment
Society shapes our beliefs, values and norms. People absorb almost
unconsciously a worldview that defines their relationship to themselves to others, to
organizations, to society, to nature and to universe.
1.2.5.2 The factor influence buyer behavior
Collins (1984) revealed that a consumer(s buying behavior is influenced by
cultural, social, personal, and psychological factors.
1. Cultural factors
Cultural is the fundamental determinant of a person(s wants and behavior. Each
culture consists of smaller subcultures that provide more specific identification and socialization
for their member. Subcultures include nationalities, religions, racial groups and geographic
region. When subcultures grow large and affluent enough, companies often design specialized
marketing program to serve them.
36
2. Social factors
A consumer(s behavior also influences by social factors as the reference groups,
family and social roles and statuses. These factors have a large influence in consumer decision-
making process (Reid, 2001).
a. Reference groups: These groups serve as direct (face to face) or indirect point
of comparison or reference in the forming of a person(s attitude and behaviors.
b. Family: Family members have a strong influence on buyer behavior. The
family remains the most important consumer-buying organization. Marketers are interested in the
roles and influence of the husband, wife, and children on the purchase of the different products
and services.
c. Roles and Status: A person belongs to many groups: family, clubs, and
organizations. An individual(s position in each group can be defined in terms of role and status. A
role consists of the activities that person is expected to perform according to the persons around
him or her. Each role carries a status reflecting the general esteem given to it by society. People
often choose products that show their status in society.
3. Personal factors
These include the buyers( age and stage in the life cycle, occupation, economic
circumstances, lifestyle, personality and self-concept.
a. Age and life cycle stage: The type of good and service people buy change
during their lifetime. As people grow older and mature, the products they desire change. The
makeup of the family also affects purchasing behavior.
b. Occupation: A person(s occupation affects the goods and services buying.
c. Economic situation: A person(s economic situation greatly affects products
choice and the decision to purchase a particular product.
d. Lifestyle: Lifestyles profile a person(s whole pattern of acting and inter-acting
the world. The lifestyle concept can help the marketer understand changing of consumer values
and how they affect buying behavior.
e. Personality and self-concept: Each person(s personality influences his or her
buying decision. Therefore, many marketers use this concept to personalize its product to each
individual.
37
4. Psychological factors
A person(s buying choices are influenced by four majors psychological factors,
which are motivation, perception, learning and beliefs and attitudes
4.2.1 Motivation
People have many needs at any given time. Some needs are biogenic, which
arises from physiological states of tension such as hunger, thirst or discomfort. Other needs are
psychogenic which rise from psychological states of tension such as the need for recognition,
esteem or belonging.
Psychologists have developed theories of human motivation, and three of the
best known are those of Sigmund Freud, Abraham Maslow and Frederick Herzberg. Those
theories carry quite different implications for consumer analysis and marketing strategy. Freud(s
Theory assumed that the psychological forces shaping people(s behavior are largely unconscious
and that a person cannot fully understand his or her own motivations. When a person examines
specific brands, he or she will react not only their stated capabilities but also to other less
conscious cues. Shape, size, weight, material, color, and brand name can all trigger certain
association and emotions.
Customer needs is the main point of marketing. Maslow(s hierarchy of needs is
one important theory as described by Abraham Maslow that there are five levels of human needs
(Chon and Sparrowe, 2000).
1) Physiological needs: Physiological needs are basic to survival and must be
satisfied first included shelter, clothes, and foods.
2) Safety needs: These second-level needs are concerned with protection and
physical well-being.
3) Social needs: Once needs at the lower levels are satisfied, consumers look
toward achieving social acceptance and association with others.
38
4) Esteem needs: It is represented by the need for achievement, ego, status,
prestige and self-respect.
5) Self-actualization needs: The highest-level needs focus on realizing maximum
potential and emotional well being. Maslow(s level of needs move from basic motive to
secondary motive (Berkowitz, 1994).
Figure 1.8 Maslow(s hierarchy of needs
Source: Adapted from Chon and Sparrowe, (2000; p.85).
Sukhothaithammatirat University (1996) indicated that customer needs is the
first point of persuasion process. Customer needs is divided by many levels and Maslow set
hypothesis about customer needs as follow (Setkit, 2004):
1. Customer needs is infinite: when one need is responded already, the new one
will occur endlessly.
2. Customer needs is still persuasive when it has not responded yet on the other
hand, which has responded already will be persuasive anymore.
3. Customer needs line up in importance: when which need is responded already,
higher one will occur continued.
Physiological
Safety
Social
Self-
Actualization
Esteem
39
4.2.2 Perception
Perception is the process by which an individual selects, organizes and interprets
information input to create a meaningful picture of the world (Berelson and Steiner, 1964)
Perception depends not only on the physical stimuli but also on the stimuli(s relation to the
surrounding field and on conditions within the individual. This is because 3 selective processes as
below (McCarthy and Perreault, 2002).
a. Selective exposure: It occurs when people pay attention to message that is
consistent with their attitudes and beliefs and ignores messages that are inconsistent.
b. Selective perception: It involves the consumer interpreting information or
modifies ideas and messages that conflict with previously learned attitudes and beliefs so that it is
consistent with their current attitudes and beliefs.
c. Selective retention: Selective retention mean that consumers do not remember
all the information they see, read, or hear, even minutes after exposure to it (Berkowits, 1994).
This affects the internal and external information search stage of the purchase decision process.
This is why real estate developers often give consumers product brochures to take home after they
leave the presentation.
4.2.3 Learning
When people act, they learn. Learning involves changes in an individual(s
behavior arising from experience. Most human behavior is learned. Learning theorists believe that
learning is produced through the interplay of drives, stimuli, cues, responses and reinforcement.
Learning process can be categorized into 3 groups as below (Berkoits, 1994).
a. Behavioral learning: Behavioral learning is the process of developing
automatic responses to a situation built up through repeated exposure to it.
40
b. Cognitive learning: Cognitive learning involves making connections between
two or more ideas or simply observing the outcomes of others( behaviors and adjusting according
to individual.
c. Brand royalty: Brand royalty is a favorite attitude toward and consistent
purchase of a single brand over time. Brand royalty results from the positive reinforcement of
previous actions.
4.2.4 Beliefs and attitudes
Through doing and learning, people acquire beliefs and attitudes. These in turn
influence buying behavior. Kotler (2006) stated that A belief is a descriptive throught that a
person holds about something. Beliefs may be based on real knowledge, opinion, or faith and may
or may not carry an emotional charge. People(s beliefs about a product or brand influence their
buying decision as it can make up product or brand image. Attitude describes a person(s relatively
consistent evaluations, feeling, and tendencies toward an objects or idea. Attitudes are difficult to
change. A person(s attitudes fit into a pattern, and to change one attitude may require difficult
adjustment in many others. Thus, a company should usually try to fit its product into existing
attitudes rather than attempt to change attitudes.
1.2.5.3 Buyer decision making.s process
The biggest factor underlying the industry(s growth, however, was the ability of
the major competitors to understand and cater to the differing needs, desires and purchase criteria
of different customer segments (Walker, 2005). The more marketers know about the factors
affecting their customer(s buying behavior, the greater their ability to design attractive product or
41
service offering, to define and target meaningful market segments, and to develop marketing
programs to fit the concerns and desires of those segments.
When purchasing high involvement product or service, consumers go through a
problem solving process involving five mental steps: problem identification, information search,
evaluation of alternatives, purchase and post purchase evaluation.
Figure 1.9 Model of buying decision process
Need Information Evaluation Purchase Post Purchase
Recognition search of decision behavior
alternative
Source: Kotler et al (2003)
a. Need recognition: The buying process starts with need recognition. The buyer
recognizes a problem or need. The need can be triggered by internal stimuli. Marketers must
determine the factor and stimulations that trigger consumer problem and markets can identify the
most often trigger interest in the product and develop marketing program that involve these
stimuli.
b. Information search: An interested consumer may or may not search for more
information. If the consumer(s drive is strong then the consumer is likely to buy the product. If
not, the consumer may store the need in memory or undertake an information search related to the
need. The amount of searching will depend on the strength of one(s drive, the amount of initial
42
information, the ease of obtaining more information, the value placed on additional information
and the satisfaction one get from the searching.
c. Evaluation of alternative: It is how the consumer processes information to
arrive at brand choices. Generally, the consumer use several evaluation processes in all buying
decision, which depends on the individual consumer and the specific buying situation. Then the
consumer ranks brands and forms purchase intentions.
d. Purchase decision: Generally, the consumer(s purchase decision will be to buy
the most preferred brand. Nevertheless, attitudes of others and unexpected situation factors may
change the purchase intention. Thus, preferences and even purchase intentions do not always
result in actual purchase choice.
e. Post purchase behavior: After purchasing the product, the consumer will be
satisfied or dissatisfied and will engage in post purchase behavior of interest to the marketer. The
determinant whether the buyer is satisfied or dissatisfied with a purchase lies in the relationship
between the consumer(s expectations and the product(s perceived performance. If the product
falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is
satisfied; if it is exceeds expectations, the consumer is delighted.
1.2.6 Related Research
Kasikorn Research Center (2006) housing market survey revealed that the
housing market still has a room to grow in 2006-2008, since a survey found people(s demand for
houses remains high. Moreover, the survey also revealed the demand for houses continue to grow.
However, the property business expansion and purchasing power of people depend on economic
conditions. KRC projected the economy would pick up next year since negative factors to a
decision on property buying including hefty interest and inflation rates, and political uncertainties,
had eased.
However, should the economic growth in 2008 outpace that in 2007, more
potential homebuyers such as those who are confident of their income stability in the future
would enter the market. The survey showed most people, who want to have their own residences,
43
are aged between 25-30 and 31-40 years, representing 38.9 and 35.7 per cent respectively. The
key factors to the purchasing decision include location of projects and prices. Single houses with
a price range of 1-3 million baht remain in the greatest demand in the market (MCOT, 2006).
Property Report (2007) also revealed that Pattaya alone reported sales of more
than US $ 230 million (Bt7.95 billion) in beachside condominiums last year, many of them
brought by foreigners. And properties are also selling briskly in many of the Kingdom(s other
beach resorts, such as Phuket, Samui and Hua Hin. More developers, as it happens, are targeting
retirees who are considering staying in Thailand permanently or seasonally.
Furthermore, Black and Sirmans (2002) studied Strategic Orientation and
Marketing Strategy: An analysis of Residential Real Estate Brokerage Firms. This thesis analyzes
marketing strategy concepts as they apply to real estate brokerage firms. The researcher has
examined the characteristics and performance of real estate firms, knowledge of the underlying
marketing strategies used and the relationship of these strategies to market shared is limited. The
study utilizes data for the residential real estate market in Baton Rouge, Louisiana. Information
for sales of single family dwellings was obtained through the Multiple Listing Service (MLS)
database.
It was found that the groups could be differentiated and firms classified by the
relative amount of marketing effort they expanded on the various marketing mix elements.
Second, it was demonstrated that the effectiveness of marketing strategy tools differed for firms
which different strategies orientation. Result also suggest that for maximum market performance
firms must make efforts across the range of marketing mix components and not concentrate on a
limited set of activities.
44
1.2.7 Conceptual Research Framework
The conceptual research framework is designed after the researcher reviewed the
literature, related concepts and theories. The concept of this study is shown as follows:
The proposed marketing strategies and guideline
for real estate developers targeting long stay
tourists and expatriates in Phuket.
Study the factor that
influence Consumer
Behavior
which affected decision
making toward
marketing mix (7’Ps)
• Gender
• Age
• Marital status
• Income
• Education level
• Occupation
• Nationality
Marketing Strategies
• Target Market
1. Long stay tourists
& Expatriates in
Phuket
2. Real estate develops
• Marketing Mix
1. Product
2. Price
3. Place
4. Promotion
5. People
6. Physical evidence
7. Process
45
1.3 Objectives of the Study
1.3.1 To gain an insight in the market for real estate by long stay tourists and
expatriates in Phuket
1.3.2 To identify the factors influencing the decision - making process of long
stay tourists and expatriates
1.3.3 To propose effective marketing strategies for real estate develops targeting
long stay tourists and expatriates in Phuket
1.4 Significance of the Study
1.4.1 To recommend successful marketing strategies aimed at increasing the
value added to the real estate
1.4.2 To be a guideline for real estate developer in applying the effective
marketing strategy as a sale tool
1.5 Data sources
Primary data:
1. Owner or marketing managers of real estate development
2. Long stay tourists in Phuket
3. Expatriates
Secondary data:
1. Tourism Authority of Thailand (T.A.T)
2. Provincial Government office
3. World Tourism Organization
4. Thailand Real Estate Association
46
5. National Association of Real Estate
6. Immigration Office
7. Department of Lands
8. Thai Appraisal Foundation
9. National Statistical Office
1.6 Limitations of the Study
1.6.1 The numbers of long stay tourists and expatriates in Phuket are not up to
date and not systematic.
1.7 Scope of the Study
The study was tailored and designed by employing quantitative methods. The
quantitative method for this study is two sets of questionnaires. The first one was collected from
long stay tourists and expatriates. The second questionnaire was collected from the real estate
developer or sales and marketing persons from qualified property projects. The data collection
period was in March and April 2007.
1.8 Definitions
In order to understanding of specific terms that were used in this study, the
following definitions are to be clarified.
1. Real estate: Land, including all inherent natural attributes and man-made
improvements of a permanent nature placed thereon.
2. Freehold Title: This type of title gives you ownership of land or apartment of
condominium, which you can lease or sell at your own discretion.
47
3. Property tax: There are two kinds of property tax in Thailand, namely, house
and land tax, and local development tax. House and land tax is imposed on the owners of a house,
building, structure or land, which is rented or otherwise put to commercial use. The tax rate is
12.5 per cent of actual or assessed annual rental value of the property.
A local development tax is imposed upon any person who either owns land or is
in possession of land. The tax rates vary according to the appraised value of the property being
determined by the local authorities. There is an allowance granted for land utilized for personal
dwellings, the raising of livestock and the cultivation of crops by the owner. The extent of the
allowance differs according to the location of the land.
4. Marketing strategy: specifies target market and a related marketing mix. It is
a big picture of what a firm will do in some market. Two interrelated parts are needed which are
target market and marketing mix (Perreault and Mcchathy, 1993)
5. Target market: A set of buyers sharing common needs or characteristics that
the company decides to serve (Kotler and Armstrong, 2006)
6. Differentiated marketing: A market-coverage strategy in which a firm
decides to target several market segments and designs separate offers for each (Kotler and
Armstrong, 2006)
7. Competitive advantage: A firm has a marketing mix that the target market
sees as better than a competitor(s mix (Perreault and Mcchathy, 2002)
8. Segmented pricing: the company sells a product at two or more prices to
accommodate the different customer, product forms, locations, or times (Kotlet, 2003)
9. Public relations: Communication with noncustomers- including labor, public
interest groups, stakeholder, and the government (Perreault and Mcchathy, 2002).
10. Foreign investor: for the purposes of this study, this includes foreign
citizens investing in real estate in Thailand for private or business purposes
11. Long stay tourists: Long stay tourists are mainly overseas visitors who
come to Thailand to spend their leisure time in the country for over one month to six months in a
year. They have no desire to make a living or to earn incomes in Thailand (TAT, 2007).
12. Expatriate: a person temporarily or permanently residing in a country and
culture other than that of the person's upbringing or legal residence
48
(Wikipedia, 2007).
13. Place: The definition of place factor according to marketing concept, place
represents channel of distribution. For this study, place factors indicate the location of property
development.
14. Customer relationship management: A broad term that covers concepts
used by companies to manage their relationships with customers, including the capture, storage
and analysis of customer, vendor, partner, and internal process information.
15. High-end: Top of the line. It refers to the most sophisticated, and typically
the most expensive, product in a line.
1.9 Marketing mix for the study
The study decided to use the 7Ps of marketing mix by Booms and Bitner concept
(1981). It includes product, price, place, promotion, people, process and physical evidence to be
the factors for purposing the important level that influence long stay tourists and expatriates
decision making in choosing real estate in Phuket
46
CHAPTER 2
METHODOLOGY
The research methodology to be employed for this research project ought to
be considered upon three essential issues. They are: (1) the specific objectives of this research, (2)
the availability of data sources, and (3) the completeness of data sources with the reliability of
final results and their respective analysis.
2.1 Target population
The populations of this survey study comprise of two distinct groups.
1. The population of real estate developer in Phuket was drawn from the availability
of the data, which were found from Real Estate Club, Department of Land and World Wide Web.
Therefore, the total population of real estate developer in Phuket is 76 projects.
Table 2.1 Target population of real estate developer in Phuket
Location Target Population
Phuket town and Kathu 15
Patong and Kalim 7
Kata and Karon 6
Kamala, Chengtalay, Sunrin 19
Rawai, Naiharn, Chalong 17
Talang, Pa-kok, Ao-por 4
Naiyang and Maikao 6
Panwa and Ao Makam 2
Total real estate develop 76
Source: Phuket Real Estate Club (2006) and Department of Land (2006)
47
2. The foreigner stays in Phuket, which can categorize into 2 groups as long stay
tourists and expatriates. The number of long stay tourists in Phuket from Phuket Immigration
Office in Phuket Town is estimated to be around 7,227 people in 2006. Whereas, number of
expatriates in Phuket is estimated to be around 12,000 people (Immigration Office, 2006).
2.2 Sample size
The sample size for real estate developers in Phuket as the representative for entire
population is 44 projects. The researcher chooses the real estate project, which set their property9s
selling price of more than 10 million Thai baht per unit as the property target its market on long
stay tourists and expatriates, who seek western standard with good quality finishing. The
properties are defined by their ocean views and proximity to the water (Exclusive Homes, 2007).
Moreover, the researcher applies Taro Yamane9s theory (1967) to calculate the
sample sizes for long stay tourists and expatriates in Phuket with the confidence interval at 95%.
Therefore, the population variable or (e) is 5 percent and the total number of long stay tourists and
expatriates in Phuket is 19,227.
According to the formula:
e = Confidence interval at 95%, so e = 0.05
N = number of population = 19,227
n = sample size
Substituting the equation:
n = 392
Therefore, the sample size for long stay tourists and expatriates is 392.
46
1+19,227(0.05)2
19,227
n
=
n
= 1 +
N(e)2
N
48
Table 2.2 Sample size of long stay tourists and expatriates in Phuket
Type of Population No: of
Population
No: of
actual
sample
Adjusted Number
of Sample
Percentage (%)
1. Long stay tourists 7,227 147.35 147 37.59
2. Expatriates 12,000 244.65 245 62.41
Total 19,227 392 392 100.00
2.3 Sampling method
The judgment sampling was used as sampling method for real estate develop,
which each sample respondents target its market on long stay tourists and expatriates in Phuket
and also set their property9s selling price of more than 10 million Thai baht per unit.
Moreover, the researcher selected convenience sampling method, which is
convenient and inexpensive for the sample of 392 long stay tourists and expatriates in Phuket
from 19,227 people.
2.4 Instrument Selection
Tools for data collecting processes were designed as the questionnaires for both
long stay tourists and expatriates group and real estate developer and salesperson group. The
questionnaires used in the study for long stay tourists and expatriates consisted of 4 parts as
following.
1. The first part is closed - end question to categorize the respondents in
49
group and to measure the correspondent9s behavior.
2. The second part is rating scale, which measured the influential factor on
the customer9s decision making in choosing real estate in Phuket.
3. The third part is opened - end question, which gather the respondent9s
recommendation to real estate developer and Thai government.
4. The fourth part is also closed - end question which gather the
4. respondent9s social and demographic data pertaining to race, gender, age
group, marital status, family size, occupation, educational qualification, and
monthly household income range.
Whereas, the questionnaires used in the study for real estate developer and sale
person consisted of 3 parts as following.
1. The first part is closed - end question to gather the information of each
real estate project.
2. The second part is rating scale, which measured the important factor on
the customer9s decision making in choosing their real estate in Phuket.
3. The third part is opened - end question, which gather the respondent9s
recommendation or suggestions about the issue in real estate and their
opinion toward the long stay tourists and expatriates market in Phuket.
2.5 Data Collection
Both primary and secondary data have been collected for this study
2.5.1 Primary data:
The research methodology is survey method by questionnaires. The questionnaire
to real estate developer or sale person was given to 44 real estate projects in Phuket. The purpose
of this questionnaire is to gain an inside knowledge of how real estate developer analyze their
marketing mix and their project.
50
Moreover, the second questionnaires were distributed to the long stay tourists and
expatriates in Phuket. The respondents were requested to fill in the questionnaires in accordance
to their perception. The researcher collected the questionnaire from the Immigration Office from
in Phuket Town from March 12 - April 16, 2007.
2.5.2 Secondary data:
The objective was to get the statistic information of the number of tourist arrival
and revenue from tourism in Phuket from Tourism Authority of Thailand, as well as statistics of
long stay tourists and expatriates in Phuket from Phuket Immigration at Phuket Town. The
researcher also sought the information from websites, magazines and textbooks as to gain more
information on the number of real estate, which have been developing and its trends.
2.6 Data Analysis
The analysis is based on quantitative features. The SPSS (Statistical Package for
the Social Science) was employed to analyze the final result of quantitative method as following.
2.6.1 The questionnaire for long stay tourists and expatriates
1. Part 1 Analyzing the need for real estate of the sample population by
analyzing the frequency and percentage
4. Part 2 Analyzing the factor that influence the buyer to purchase the real
estate by mean and standard deviation
5. Part 3 Analyzing the demographic information of the sample population by
analyzing the frequency and percentage
6. Part 4 Analyzing by T-test and one-way ANOVA testing at 0.05 as to
comparing the demographic factor influence to the buyer decision
making.
2.6.2 The questionnaire for real estate developer and sale person
1. Part 1 Analyzing the nature of real estate9s sample population by
51
analyzing the frequency and percentage
2. Part 2 Analyzing the important factor that influence the buyer to purchase
their real estate by mean and standard deviation
3. Part 3 Collecting the recommendation and suggestion from real estate
develop and sale person regarding to real estate issues.
2.7 The level of importance to be measured
The searcher can range important factor in 5 levels with the interval of 5-(1/5) =
0.80 as follows:
Score 1.00 - 1.80 points very low important factor level
Score 1.81 - 2.60 points low important factor level
Score 2.61 - 3.40 points intermediate important factor level
Score 3.41 - 4.20 points high important factor level
Score 4.21 - 5.00 points very high important factor level
To compare the opinion of long stay tourists and expatriates relating to
marketing mix, T-test at 0.05 significance level (95% significance level) was the tool to indicate
the significance level among the groups.
52
CHAPTER 3
RESULTS
3.1 Introduction
This chapter focuses on the results obtained from the quantitative studies. The
analysis of the quantitative data derived from two sets of questionnaires. The first one is for the
long stay tourists and expatriates in Phuket for analyzing the factors influence their decision
making in purchasing real estate. The second questionnaire is for the real estate developer, which
was analyzed their customer�s decision making in choosing their real estate. The result will be
presented briefly as shown in tables and by figures. Data was analyzed using mainly descriptive
statistics. Software SPSS was used to analyze and present the result.
3.2 Research findings
3.2.1 Factors that influence long stay tourists and expatriate$ decision making in
choosing real estate in Phuket
There were 147 questionnaires for long stay tourists and 245 questionnaires for
expatriates who have been working in Phuket. The second set of questionnaires was given out to
44 real estate developers in Phuket. Therefore, the result was divided into two groups, which are
long stay tourists and expatriates, and real estate developer.
53
Socio-demographic profile of long stay tourists and expatriates
The sample groups consisted of 147 long stay tourists and 245 expatriates, living
or working in Phuket. The sample respondents were collected from Phuket immigration during 15
March - 16 April, 2007 belonged to these characteristics
(1) Individual factors
The primary purpose of these questionnaires were to examine the personal data
of respondents in order to analyze the relation with marketing mix factors that influence long stay
tourists and expatriates� decisions to choose the real estate project in Phuket. The survey showed
that most of the samples were from the male gender for both long stay tourists and expatriates
(Table 3.1).
In regard to the marital status of long stay tourist respondents, the result showed
that single status respondents were the highest ratio at 45.58 percent whereas married 23.8
percent, and married with children 18.37 percent, and divorce or widow 12.24 percent
respectively. Whereas, the marital status of expatriates respondents showed that single status was
also the highest ratio at 40.00 percent, and married 34.29 percent, and married with children
13.88 percent, and divorce or widow 11.84 percent respectively
The age of long stay sample respondents were mostly over 60 years at 23.13
percent, and then 51 - 60 years at 22.45 percent, and 41 - 50 years at 20.41 percent, and 21-30
years at 19.73 percent respectively. Whereas, the age of expatriates sample respondents mostly
were 31-40 years at 33.88 percent, and secondly 41-50 years at 22.45 percent, and 51-60 years at
21.22 percent, and 21-30 years at 17.14 percent respectively.
The majority of long stay tourists had an education level lower than bachelor
degree at 36.05 percent, bachelor degree 33.33 percent and higher than bachelor degree 30.61
percent respectively. Whereas, the majority of expatriates had bachelor degree at 48.57 percent,
52
54
and lower than bachelor degree 26.53 percent and higher than bachelor degree 24.90 percent
respectively
Moreover, most of long stay tourists� respondents were unemployed/retired at
41.50 percent, whereas self-employed at 25.17 percent, company employed at 11.56 percent and
professional at 10.88 percent. Whereas, most of expatriates� respondents were company employee
at 30.61 percent, self-employed at 23.27 percent, professional at 17.14 percent, company owner at
14.69 percent and unemployed at 12.65 percent.
Most of the long stay respondents had income per year between
30,001 - 40,000 US$ at 27.21 percent, less than 30,000 US$ per year at 21.09 percent, 40,001 -
50,000 at 20.41 percent, and more than 70,001 at 14.97 percent. Whereas, most of expatriates
respondents had income per year between 40,001 - 50,000 US$ at 24.90 percent, 30,001 - 40,000
US$ per year at 24.08 percent, less than 30,000 us$ at 21.22 percent and more than 70,001 at
13.06 percent.
Moreover, Table 3.2 shows respondents� behavior, the purpose of these
questions is to examine the respondents� behavior. Most of long stay tourists spent more than 10-
20 weeks in Thailand, accounted for 37.43 percent, less than 10 weeks at 26.52 percent, more
than 20-30 weeks at 23.81 percent and more than 30 weeks for each visit at 12.24 percent.
The majority of expatriates have been working in Thailand for 1-5 years at 71.05
percent, 6-10 years at 17.96 percent, 11-15 years at 7.35 percent and more than 20 years at 1.63
percent.
55
Table 3.1 Social-demographic profiles of respondents
Variable Long stay Expatriate Total
N % N % N %
Gender
Male 115 78.23 178 72.65 293 74.74
Female 32 21.77 67 27.35 99 25.26
Total 147 100.00 245 100.00 392 100.00
Marital status
Single 67 45.58 98 40.00 165 42.09
Married 35 23.81 84 34.29 119 30.36
Married with child 27 18.37 34 13.88 61 15.56
Divorced/widowed 18 12.24 29 11.84 47 11.99
Total 147 100.00 245 100.00 392 100.00
Age
20 - 30 years old 29 19.73 42 17.14 71 18.11
31 - 41 years old 21 14.29 83 33.88 104 26.53
41 - 50 years old 30 20.41 55 22.45 85 21.68
51 - 60 years old 33 22.45 52 21.22 85 21.68
Over 61 years old 34 23.13 13 5.31 47 11.99
Total 147 100.00 245 100.00 392 100.00
56
Table 3.1 (Continued)
Variable Long stay Expatriate Total
N % N % N %
Education level
Lower than Bachelor
degree 53 36.05 65 26.53 118 30.10
Bachelor degree 49 33.33 119 48.57 168 42.86
Higher than bachelor
degree 45 30.61 61 24.90 106 27.04
Total 147 100.00 245 100.00 392 100.00
Occupation
Self Employed 37 25.17 57 23.27 94 23.98
Unemployed/Retired 61 41.50 31 12.65 92 23.47
Company employee 17 11.56 75 30.61 92 23.47
Business Owner 12 8.16 36 14.69 48 12.24
Professional 16 10.88 42 17.14 58 14.80
Others 4 2.72 3 1.22 7 1.79
Volunteer 0 0.00 1 0.41 1 0.26
Total 147 100.00 245 100.00 392 100.00
Income per Year (US$)
Less than 30,000 31 21.09 52 21.22 83 21.17
30,001 - 40,000 40 27.21 59 24.08 99 25.26
40,001 - 50,000 30 20.41 61 24.90 91 23.21
50,001 - 60,000 12 8.16 21 8.57 33 8.42
60,001 - 70,000 12 8.16 20 8.16 32 8.16
More than 70,001 22 14.97 32 13.06 54 13.78
Total 147 100.00 245 100.00 392 100.00
57
Table 3.2 Tourism behaviors among long stay tourists and expatriates
Long stay Variable
Frequency (%)
Time spent each visit in Thailand
Less than 10 weeks 38 26.52
10-20 weeks 56 37.43
20-30 weeks 34 23.81
More than 30 weeks 19 12.24
Total 147 100.00
Expatriates Variable
Frequency (%)
No: of Years working in Thailand
1-5 years 174 71.02
6-10 years 44 17.96
11-15 years 18 7.35
16-20 years 5 2.04
More than 20 years 4 1.63
Total 245 100.00
From table 3.3, the results showed that most of long stay tourists come from
Europe at 23.81 percent, USA and Canada at 16.33 percent, the same as from England at 16.33
percent. The third is from Scandinavia at 15.65 percent, Germany at 10.20 percent, Switzerland
at 8.16 percent, Asia at 5.44 percent and from Australia and New Zealand at 4.08 percent.
Whereas, the majority of expatriates come from UK at 26.12 percent, followed by from Asia at
15.92 percent, USA and Canada at 13.06 percent, Germany at 6.53 percent and Switzerland at
2.04 percent.
58
Table 3.3 Country of residence among long stay tourists and expatriates in Phuket
Variable Long stay Expatriate Total
N % N % N %
Country
Asia 8 5.44 39 15.92 47 11.99
USA and Canada 24 16.33 32 13.06 56 14.29
UK 24 16.33 64 26.12 88 22.45
Switzerland 12 8.16 5 2.04 17 4.34
Germany 15 10.20 16 6.53 31 7.91
Scandinavian 23 15.65 8 3.27 31 7.91
Others in Europe 35 23.81 58 23.68 93 23.73
Australia and New Zealand 6 4.08 23 9.39 29 7.40
Total 147 100.00 245 100.00 392 100.00
Table 3.4 showed the result of the area, which area that long stay tourists and
expatriates have been living. The result showed that the majority of long stay tourists stayed at
Rawai and Chalong at 34.69 percent, followed by Kata and Karon at 15.65 percent matching
Phuket town at 15.65 percent, Kamala and Surin at 14.29 percent and Patong and Kalim at 12.24
percent. Whereas, most of expatriates have been living in Phuket town at 25.71 percent, Rawai
and Chalong at 22.04 percent, Kamala and Surin at 16.73 percent and Patong and Kalim at 12.65
percent.
Moreover, most of long stay tourists think that Rawai and Chalong is the most
desire place to stay, accounted 36.05 percent, Kata and Karon at 23.13 percent, Naiyang and
Maikao at 20.4 percent and Kamala and Surin at 17.01 percent. Expatriates think that the most
desirable place to stay is Kamala and Surin at 28.98 percent, Rawai and Chalong at 24.08 percent,
Kata and Karon at 13.47 percent and Phuket town 11.43 percent.
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Table 3.4 Area of residence among long stay tourists and expatriates in Phuket
Variable Long stay Expatriate Total
N % N % N %
In which area of Phuket do you live currently
Phuket town and Kathu 23 15.65 63 25.71 86 21.94
Patong and Kalim 18 12.24 31 12.65 49 12.50
Kata and Karon 23 15.65 25 10.20 48 12.24
Kamala and Surin 21 14.29 41 16.73 62 15.82
Rawai and Chalong 51 34.69 54 22.04 105 26.79
Talang 4 2.72 20 8.16 24 6.12
Naiyang 3 2.04 5 2.04 8 2.04
Panwa and Ao-Makam 2 1.36 6 2.45 8 2.04
Others 2 1.36 0 0.00 2 0.51
Total 147 100 245 100 392 100
In which area of Phuket would you consider most desire to stay
Phuket town 13 8.84 28 11.43 41 10.46
Patong and Kalim 14 9.52 16 6.53 30 7.65
Kata and Karon 34 23.13 33 13.47 67 17.09
Kamala and Surin 25 17.01 71 28.98 96 24.49
Rawai and Chalong 53 36.05 59 24.08 112 28.57
Talang 2 1.36 12 4.90 14 3.57
Naiyang 3 2.04 12 4.90 15 3.83
Panwa and Ao-Makam 3 2.04 13 5.31 16 4.08
Others 0 0.00 1 0.41 1 0.26
Total 147 100 245 100 392 100
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Table 3.5 shows that both long stay tourists and expatriates prefer the Thai style
accommodation at 50.30 percent by long stay tourists and 39.18 percent by expatriates. Second is
Modern for both long stay tourists and expatriates at 15.65 percent and 20.41 percent
respectively. Third is Contemporary for both groups at 12.24 percent and 19.59 percent, followed
by Balinese style at 8.84 percent by long stay tourists and 10.61 percent by expatriates.
Most of long stay tourists and expatriates spend less than 15,000 baht per month
for their accommodation rental, accounted to 63.95 percent by long stay tourists and 40.00
percent by expatriates. Second is the 15,001 - 30,000 baht per month bracket at 27.89 percent by
long stay tourists and 24.49 percent by expatriates and 30,001 - 45,000 baht at 5.44 percent by
long stay tourists and 8.16 percent by expatriates. Moreover, 21.63 percent of expatriates do not
have to spend for rental as they own their own house in Phuket.
Table 3.5 Favorite styles of architecture and expense per month for accommodation
Variable Long stay Expatriate Total
N % N % N %
Favorite style of architecture
Thai style 74 50.34 96 39.18 170 43.37
Modern 23 15.65 50 20.41 73 18.62
Bali 13 8.84 26 10.61 39 9.95
European 12 8.16 16 6.53 28 7.14
Country 4 2.72 6 2.45 10 2.55
Contemporary 18 12.24 48 19.59 66 16.84
Others 3 2.04 3 1.22 6 1.53
Total 147 100.00 245 100.00 392 100.00
How much rent do you pay per month (Baht)
None (Home Owners) 53 21.63 35 8.93
less than 15,000 94 63.95 98 40.00 199 50.77
15,0001 - 30,000 41 27.89 60 24.49 110 28.06
30,001 - 45,000 8 5.44 20 8.16 29 7.40
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45,0001 - 60,000 1 0.68 6 2.45 7 1.79
More than 60,001 3 2.04 8 3.27 12 3.06
Total 147 100.00 245 100.00 392 100.00
1) The access to information for accommodation
The main purpose of these questions is to examine how long stay tourists and
expatriates access information relating to real estate. From Table 3.6, the result showed that most
long stay tourists and expatriates found out about their accommodation from family and friends at
64.63 percent and 49.39 percent by expatriates. The second is via the Internet at 11.56 percent for
long stay tourist and by driving around at 13.88 percent for expatriates. The third for long stay
tourists is by driving around at 5.44 percent and 11.02 percent by Internet for expatriates. The
least media access is from advertising signs for both long stay tourists and expatriates.
Table 3.6 The access to information of the accommodation by long stay tourists and
expatriates
Variable Long stay Expatriate Total
N % N % N %
How did you find out about your accommodation
Friends and family 95 64.63 121 49.39 216 55.10
Internet 17 11.56 27 11.02 44 11.22
Drive around 8 5.44 34 13.88 42 10.71
Marketing staff or sale
executive 6 4.08 15 6.12 21 5.36
Magazine 5 3.40 7 2.86 12 3.06
Brochure and poster 5 3.40 8 3.27 13 3.32
from work 4 2.72 3 1.22 7 1.79
Newspaper 3 2.04 15 6.12 18 4.59
others 3 2.04 10 4.08 13 3.32
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Advertising sign 1 0.68 1 0.41 2 0.51
Property show - - 1 0.41 1 0.26
Total 147 100.00 245 100.00 392 100.00
2) The importance of marketing mix$s factors that influence tourist$s
decision making in choosing the real estate
For product factor, The study of the long stay tourists sample shown high
important level of product factors that influences long stay tourists� decision making in choosing
real estate in Phuket were credibility of the developer, interior design, space in each room,
telephone line, layout of the house, overall size of the house, enough parking space and own
garden area (Table 3.7). In overall, the importance of product factors to long stay tourists�
decision making in choosing the real estate in Phuket was high important level (Mean = 3.64) and
very high important level for expatriates (Mean = 3.77). The result of independent samples T-test
indicated that expatriates gave more level of important significantly difference regarding to
credibility of the developer, interior design, overall size of the accommodation, space in each
room and own garden area.
For price factor, the study shown that very high importance level of price factors
that influence both long stay tourists and expatriates decision making in choosing real estate in
Phuket was valuable for money (Table 3.8). The average importance of price factors to long stay
tourists and expatriates� decision making in choosing the real estate in Phuket was high important
level. The result of independent samples T-test also indicated that expatriates gave more level of
important significantly difference regarding to value for money factor.
For place factor, the study of the both long stay tourists and expatriates sample
showed high important level of place factors that influences their decision making in choosing
real estate in Phuket was location by sea (Table 3.9). The average important of place factors to
long stay tourists and expatriates� decision making in choosing the real estate in Phuket was
intermediate important level. The mean scores were at 3.04 and 3.10 respectively. The result of
independent samples T-test indicated that expatriates gave more level of important significantly
difference regarding to location of the property near by the working place.
63
For promotion factor, the study showed that promotion factors which are
advertising sign, knowledge and presentation of sale representative, advertising on newspaper and
website promotion were the intermediate important level for both long stay tourist and
expatriates� decision making in choosing real estate in Phuket (Table 3.10). Moreover, the
average important of overall promotion factors to long stay tourists� decision making in choosing
the real estate in Phuket was intermediate important level
(Mean = 2.82) as well as expatriates (Mean = 2.79).
For people, the study showed that people factors, which are efficient/courteous
of service staffs, convenience in contacting staffs and easy communication with staffs were high
important level for both long stay tourist and expatriates� decision making in choosing real estate
in Phuket (Table 3.11). Moreover, the important of overall people factors to long stay tourists�
decision making in choosing the real estate in Phuket was also high important level (Mean =
3.79).as well as expatriates (Mean = 4.06). The result of independent samples T-test also
indicated that expatriates gave more level of important significantly difference regarding to
efficient/courteous of service staffs, convenience in contacting staffs and easy communication
with staffs.
For physical evidence, the study showed that physical evidence factors which
are atmosphere around the property and surrounding and general appearance of the property were
high important level for long stay tourist and very high important level for expatriates� decision
making in choosing real estate in Phuket (Table 3.12). The important of overall physical evidence
factors to long stay tourists� decision making in choosing the real estate in Phuket was high
important level (Mean = 4.01) and very high important level for expatriates (Mean = 4.31). The
result of independent samples T-test also indicated that expatriates gave more level of important
significantly difference regarding atmosphere around the property and surrounding and general
appearance of the property
For process, the study showed that security service was the high important level
for both long stay tourist and expatriates� decision making in choosing real estate in Phuket.
Moreover, the important of overall process factors to long stay tourists� decision making in
choosing the real estate in Phuket was intermediate important level
(Mean = 3.25) as well as expatriates (Mean = 3.33) (Table 3.13).
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Table 3.7 Importance level of Product factors among Long stay tourists and expatriates respondents
Long Stay Tourist Expatriate Total
Mean S.D.
Level of
Importance Mean S.D.
Level of
Importance Mean S.D.
Level of
Importance Sig.
Product
Creditability of the developer 4.07 0.88 High 4.34 0.93 Very High 4.24 0.92 Very High 0.00*
Interior design 3.74 0.85 High 3.96 0.85 High 3.88 0.85 High 0.02*
Overall size of the accommodation 3.63 0.89 High 3.90 0.77 High 3.80 0.82 High 0.00*
Space in each room 3.70 0.83 High 3.98 0.76 High 3.87 0.80 High 0.00*
Telephone line connected to high speed internet 3.89 1.08 High 3.79 1.07 High 3.83 1.07 High 0.38
Enough parking 3.58 0.94 High 3.64 0.94 High 3.62 0.94 High 0.52
House included pool 3.01 1.15 Intermediate 2.92 1.18 Intermediate 2.95 1.17 Intermediate 0.47
Own garden area 3.45 0.98 High 3.65 0.96 High 3.58 0.97 High 0.04*
Layout of the house 3.73 0.92 High 3.84 0.82 High 3.80 0.86 High 0.22
Total 3.64 High 3.77 High 3.73 High
Remark: 1. T-test was performed to identify statistically significant differences between groups.
2. * indicates statistically significant differences between groups (p ≤ 0.05).
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Table 3.8 Important level of Price factors among Long stay tourists and expatriates respondents
Long Stay Tourist Expatriate Total
Mean S.D.
Level of
Importance Mean S.D.
Level of
Importance Mean S.D.
Level of
Important Sig.
Price
Value for money 4.14 0.84 Very High 4.42 0.80 Very High 4.32 0.83 Very High 0.00*
Availability of finance 3.33 1.12 Intermediate 3.51 1.15 High 3.44 1.14 High 0.12
Favorable payment term 3.29 1.08 Intermediate 3.44 1.10 High 3.39 1.09 Intermediate 0.18
Electric and water rate 3.57 1.03 High 3.46 1.06 High 3.50 1.05 High 0.31
Total 3.58 High 3.71 High 3.66 High
Remark: 1. T-test was performed to identify statistically significant differences between groups.
2. * indicates statistically significant differences between groups (p ≤ 0.05).
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Table 3.9 Important level of Place factors among Long stay tourists and expatriates respondents
Long Stay Tourist Expatriate Total
Mean S.D.
Level of
Importance Mean S.D.
Level of
Importance Mean S.D.
Level of
Importance Sig
Place
Its location by the sea or nearby 3.76 0.99 High 3.63 1.03 High 3.68 1.01 High 0.25
Its location in the golf course or nearby 2.36 1.16 Low 2.36 1.14 Low 2.36 1.14 Low 0.98
Near by working place 2.69 1.16 Intermediate 3.26 1.04 Intermediate 3.05 1.12 Intermediate 0.00*
Near by community and shopping mall 3.11 1.01 Intermediate 3.10 0.95 Intermediate 3.10 0.97 Intermediate 0.95
The convenience of transportation 3.29 1.11 Intermediate 3.16 1.06 Intermediate 3.21 1.08 Intermediate 0.28
Total 3.04 Intermediate 3.10 Intermediate 3.08 Intermediate
Remark: 1. T-test was performed to identify statistically significant differences between groups.
2. * indicates statistically significant differences between groups (p ≤ 0.05).
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Table 3.10 Important level of Promotion factors among long stay tourists and expatriates respondents
Long Stay Tourist Expatriate Total
Mean S.D.
Level of
Importance Mean S.D.
Level of
Importance Mean S.D.
Level of
Importance Sig
Promotion
Sale promotion ex: discount, gift voucher etc 2.52 1.15 Low 2.58 1.05 Low 2.56 1.09 Low 0.60
Advertising sign 2.61 1.05 Intermediate 2.46 1.00 Intermediate 2.51 1.02 Intermediate 0.16
Knowledge and presentation from sale representative 3.20 1.12 Intermediate 3.34 1.16 Intermediate 3.29 1.15 Intermediate 0.25
Advertising on newspaper 2.74 1.08 Intermediate 2.66 0.99 Intermediate 2.69 1.03 Intermediate 0.45
Website promotion 3.04 1.10 Intermediate 2.93 1.06 Intermediate 2.97 1.07 Intermediate 0.33
Total 2.82 Intermediate 2.79 Intermediate 2.80 Intermediate
Remark: 1. T-test was performed to identify statistically significant differences between groups.
2. * indicates statistically significant differences between groups (p ≤ 0.05).
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Table 3.11 Important level of People factors among long stay tourists and expatriates respondents
Long Stay Tourist Expatriate Total
Mean S.D.
Level of
Importance Mean S.D.
Level of
Importance Mean S.D.
Level of
Importance Sig
People
Efficient/courteous service staff 3.71 0.98 High 4.03 0.84 High 3.91 0.91 High 0.00
Convenience in contacting staff 3.78 0.94 High 4.00 0.86 High 3.91 0.90 High 0.02
Easy communication with staff 3.87 0.88 High 4.15 0.86 High 4.05 0.87 High 0.00
Total 3.79 High 4.06 High 3.96 High
Remark: 1. T-test was performed to identify statistically significant differences between groups.
2. * indicates statistically significant differences between groups (p ≤ 0.05).
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Table 3.12 Important level of Physical evidence factors among long stay tourists and expatriates respondents
Long Stay Tourist Expatriate Total
Mean S.D.
Level of
Importance Mean S.D.
Level of
Importance Mean S.D.
Level of
Importance Sig.
Evidence Physical
Atmosphere around the property and surrounding 4.10 0.81 High 4.35 0.76 Very High 4.25 0.78 Very High 0.00*
General appearance of the property 3.99 0.79 High 4.26 0.76 Very High 4.16 0.78 High 0.00*
Total 4.01 High 4.31 Very High 4.21 Very High
Remark: 1. T-test was performed to identify statistically significant differences between groups.
2. * indicates statistically significant differences between groups (p ≤ 0.05).
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Table 3.13 Important level of Process factors among long stay tourists and expatriates respondents
Long Stay Tourist Expatriate Total
Mean S.D.
Level of
Importance Mean S.D.
Level of
Importance Mean S.D.
Level of
Importance Sig.
Process
Cleaning service provided 3.19 1.13 Intermediate 3.20 1.15 Intermediate 3.19 1.14 Intermediate 0.96
Security service provided 3.60 0.99 High 3.61 1.06 High 3.61 1.03 High 0.90
Availability of service/maintenance 3.39 0.99 Intermediate 3.57 1.00 High 3.50 1.00 High 0.08
Spaces common area 3.11 0.97 Intermediate 3.22 0.99 Intermediate 3.18 0.99 Intermediate 0.30
Additional service 2.94 1.15 Intermediate 3.03 1.13 Intermediate 3.00 1.14 Intermediate 0.43
Total 3.25 Intermediate 3.33 Intermediate 3.30 Intermediate
Remark: 1. T-test was performed to identify statistically significant differences between groups.
2. * indicates statistically significant differences between groups (p ≤ 0.05).
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From table 3.14, the long stay tourists were asked to range the marketing mix
factors in order of what are the most important criteria effecting their decision in buying or
renting the property in Phuket from 1 = most important to 7 = least important. The result showed
that the first important marketing mix factor is place. Second is price factor. Third is product
factor. Fourth is Physical factor. Fifth is person factor. Sixth is process factor and seventh is
promotion factor.
From table 3.15, the expatriates were asked to range the marketing mix factors in
order of what are the most important criteria effecting their decision in buying or renting the
property in Phuket from 1 = most important to 7 = least important. The result showed that the first
important marketing mix factor is place. Second is price factor. Third is product factor. Fourth is
physical evidence factor. Fifth is person factor. Sixth is process factor and seventh is promotion
factor. In conclusion, both groups are ranking the marketing mix factors in the same order.
75
Table 3.14 Important level of each marketing mix factors among long stay tourists
respondents in choosing real estate in Phuket
Factors 1 2 3 4 5 6 7 Total Mean Ranking
Product N 33 37 52 16 5 4 0 147 2.56
% 22.45 25.17 35.37 10.88 3.40 2.72 - 100 3
Price N 39 53 37 16 0 0 2 147 2.27
% 26.53 36.05 25.17 10.88 - - 1.36 100 2
Place N 70 43 25 7 0 1 1 147 1.85
% 47.62 29.25 17.01 4.76 - 0.68 0.68 100 1
Promotio
n N 0 2 4 14 23 34 70 147 5.99
% - 1.36 2.72 9.52 15.65 23.13 47.62 100
7
Person N 2 6 7 21 42 43 26 147 5.23
% 1.36 4.08 4.76 14.29 28.57 29.25 17.69 100 5
Physical N 6 11 18 51 27 25 9 147 4.31
% 4.08 7.48 12.24 34.69 18.37 17.01 6.12 100 4
Process N 1 4 5 20 47 35 35 147 5.40
% 0.68 2.72 3.40 13.61 31.97 23.81 23.81 100 6
Remark: 1. Likert scale of 1 to 7 was used to rank the level of importance
(1 = most important and 7 = least important)
76
Table 3.15 Important level of each marketing mix factors among expatriates respondents in
choosing real estate in Phuket
Factors 1 2 3 4 5 6 7 Total Mean Ranking
Product N 59 65 75 25 14 5 2 245 2.56 3
% 24.08 26.53 30.61 10.20 5.71 2.04 0.82 100
Price N 66 89 59 25 3 2 1 245 2.27 2
% 26.94 36.33 24.08 10.20 1.22 0.82 0.41 100
Place N 106 74 51 10 1 2 1 245 1.92 1
% 43.27 30.20 20.82 4.08 0.41 0.82 0.41 100
Promotion N 2 1 1 22 36 51 132 245 6.14 7
% 0.82 0.41 0.41 8.98 14.69 20.82 53.88 100
Person N 3 2 9 42 75 76 38 245 5.30 5
% 1.22 0.82 3.67 17.14 30.61 31.02 15.51 100
Physical N 5 13 41 81 45 37 23 245 4.43 4
% 2.04 5.31 16.73 33.06 18.37 15.10 9.39 100
Process N 4 1 10 40 71 71 48 245 5.36 6
% 1.63 0.41 4.08 16.33 28.98 28.98 19.59 100
Remark: 1. Likert scale of 1 to 7 was used to rank the level of importance
(1 = most important and 7 = least important)
77
3.2.2 Real Estate Developer
The sample group consists of 44 qualified real estate developments in Phuket
which provide the accommodation per unit of more than 10 millions baht. The questionnaires
were collected from each qualified real estate development during
May 1 - May 14, 2007 belonged to these characteristics (Table 3.16).
1) Characteristic factors and motive factors
The result showed that the majority of the qualified real estate developments are
located at Kamala, Surin and Chengtalay area at 22.73 percent, and Phuket town and Kathu at
20.45 percent, and Rawai, Niharn and Chalong area as well as Patong and Kalim at 13.64 percent.
Panwa and Ao Makam area has least qualified real estate development which was accounted only
2 projects at 4.55 percent (Table 3.16).
Table 3.16 Data collection�s areas of real estate development
Variable Number Percent
In which area of Phuket is your project located
Kamala, Chengtalay and Surin 10 22.73
Phuket town and Kathu 9 20.45
Patong and Kalim 6 13.64
Rawai, Niharn and Chalong 6 13.64
Naiyang and Mai kao 5 11.36
Kata and Karon 4 9.09
Talang, Pakok and Ao-por 2 4.55
Panwa and Ao Makam 2 4.55
Total 44 100.00
78
Table 3.17 shows the result that the majority type of property was single
house at 43.18 percent, followed by villa at 34.09 percent, and apartment or condominium at 22.73
percent, and twin house at 9.10 percent, and town house at 6.82 percent and time share at 2.27
percent. Whereas, the majority of property price was ranged between 10.1 - 15 millions baht, and
15.1 - 20 millions baht and 20.1 - 30 millions baht were 25.00 percent each, and 30.1 - 40 million
baht at 11.36 percent and more than 40 million baht per unit at 6.82 percent.
Table 3.17 Characteristics of qualified real estate development in Phuket
Variable Frequency Percent
Type of Property
Single house 19 43.18
Villa 15 34.09
Apartment or condominium 10 22.73
Twin house 4 9.10
Town house 3 6.82
Time share 1 2.27
Total 44 100.00
Variable Frequency Percent
Your property price per unit
10.1 - 15 millions 14 31.82
15.1 - 20 millions 11 25.00
20.1 - 30 millions 11 25.00
30.1 - 40 millions 5 11.36
More than 40.1 millions 3 6.82
Total 44 100.00
79
Table 3.18 shows the result that the majority of architecture style of real estate
project were modern style as well as contemporary style at 31.82 percent each. Second is Thai
style at 15.91 percent, and Bali style at 18.18 percent, and European style at 2.27 percent.
Table 3.18 The architecture style of the qualified real estate development in Phuket
Variable Frequency Percent
Architecture style
Modern 14 31.82
Contemporary 14 31.82
Bali 8 18.18
Thai style 7 15.91
European 1 2.27
Total 44 100.00
2) The advertisement methods employed by real estate companies
The main purposes of this set of questions are to examine how each real estate
companies advertise their project. Table 3.19 shows the result that most of the real estate projects
advertised their projects by Internet at 93.18 percent, and property show at 88.64 percent, and
brochure at 70.45 percent, and magazine at 65.91 percent, and friends and family at 59.09
percent, and newspaper at 45.45 percent, and radio at 22.73 percent, and marketing staffs at 15.91
percent and television at 4.55 percent respectively.
80
Table 3.19 The advertisement method employed by real estate development
Variable Frequency Percent
Sources of Advertising
Internet 41 93.18
Property Show 39 88.64
Poster and Brochure 31 70.45
Poster and Brochure 31 70.45
Magazine 29 65.91
Friends and family 26 59.09
Newspaper 20 45.45
Radio 10 22.73
Marketing staff or sale executive 7 15.91
Television 2 4.55
3) The importance of marketing mix$s factors that influences the
customer decision making when choosing the real estate project
Product
The result showed that the very high importance level of product factors that real
estate developer thought influenced their customer decision making in choosing real estate in
Phuket were credibility of the developer (Table 3.20). And high important level of product
factors were layout of the house, interior design, space in each room, enough parking, overall
81
size of the house, own garden area, telephone line and house including swimming pool.
Moreover, the average important of product factors to customer decision making in choosing the
real estate in Phuket was high important level
(Mean = 3.87).
Table 3.20 Important level of product factors to real estate developer
Real Estate Developer Variable
Mean Std. Level of
Importance
Product
Credibility of the developer 4.59 0.62 Very High
Layout of the house 4.02 0.79 High
Interior design 3.98 1.00 High
Space in each room 3.89 0.75 High
Enough parking 3.86 0.90 High
Overall size of the house 3.80 0.76 High
Own garden area 3.64 1.06 High
Telephone line 3.59 0.79 High
House inc. swimming pool 3.48 1.30 High
Average 3.87 High
Price
The study showed that very high important level of price factors that influence
real estate project�s customer decision making in choosing real estate in Phuket were valuable for
money. Whereas, high important levels was favorable payment term and availability of finance
(Table 3.21).
In the consideration of importance levels of the real estate project�s customer,
price factors was high important level (Mean = 3.89) which influence their decision making in
choosing real estate in Phuket.
82
Table 3.21 Important level of price factors to real estate developer
Real Estate Developer Variable
Mean Std. Level of
Importance
Price
Value for money 4.68 0.56 Very High
Favorable payment term 3.80 0.82 High
Availability of finance 3.77 1.01 High
Electric and water rate 3.30 0.79 Intermediate
Average 3.89 High
Place
The study of the real estate developer respondents showed high important level
of place factors that influences their customer decision making in choosing real estate in Phuket
were the convenience of transportation, its location by sea and nearby community, shopping area
and nearby working place (Table 3.22). Moreover, the avarage important of place factors to real
estate�s customer decision making in choosing the real estate in Phuket was high important level
(Mean = 3.59).
Table 3.22 Important level of place factors to real estate developer
Real Estate Developer Variable
Mean Std. Level of
Importance
Place
The convenience of transportation 4.02 0.93 High
Its location by the sea or nearby 3.93 0.95 High
Near by community and shopping mall 3.57 0.93 High
83
Near by working place 3.43 0.85 High
Its location in the golf course or nearby 2.98 1.05 Intermediate
Average 3.59 High
Promotion
From Table 3.23 the study showed that very high important level of promotion
factors were knowledge and presentation of sale representative. Whereas, high important level
were website promotion, advertising signs and sale promotion. Moreover, the importance of
overall promotion factors to real estate�s customer decision making in choosing the real estate in
Phuket was high important level (Mean = 3.70).
Table 3.23 Important level of promotion factors to real estate developer
Real Estate Developer Variable
Mean Std. Level of
Importance
Promotion
Knowledge and presentation from sale
representative
4.23 0.74 Very High
Website promotion 3.89 1.02 High
Advertising sign 3.64 0.94 High
Sale promotion 3.50 1.05 High
Advertising on newspaper 3.23 1.05 Intermediate
Average 3.70 High
People
The study showed that people factors which are efficient/courteous of service
staffs, convenience in contacting staffs and easy communication with staffs were very high
important level for real estate�s customer decision making in choosing real estate in Phuket (Table
84
3.24). Moreover, the important of overall people factors was also very high important level (Mean
= 4.40).
Table 3.24 Important level of person factors to real estate developer
Real Estate Developer Variable
Mean Std. Level of
Importance
Person
Efficient/courteous service staff 4.48 0.63 Very High
Convenience in contacting staff 4.39 0.72 Very High
Foreign language speaking staff 4.32 0.71 Very High
Average 4.40 Very High
Physical evidence
The study showed that physical evidence factors which are general appearance
of the property and atmosphere around the property and surrounding were very high important
level for real estate�s customer decision making in choosing real estate in Phuket (Table 3.25).
Moreover, the important of overall physical evidence was also very high important level (Mean =
4.50).
Table 3.25 Important level of physical evidence factors to real estate developer
Real Estate Developer Variable
Mean Std. Level of
Importance
Physical Evidence
General appearance of the property 4.61 0.54 Very High
Atmosphere around the property 4.39 0.69 Very High
Average 4.50 Very High
85
Process
The study showed that very high important level of process factors were security
service provided. Whereas, high important level were cleaning service provided, availability of
service/maintenance, space common areas and additional service such as restaurants, spa, fitness
Moreover, the importance of overall process factors to real estate�s customer decision making in
choosing the real estate in Phuket was high important level (Mean = 4.11).
Table 3.26 Important level of process factors to real estate developer
Real Estate Developer Variable
Mean Std. Level of
Importance
Process
Security service provided 4.45 0.66 Very High
Additional service 4.09 0.96 High
Spaces common area 4.09 0.77 High
Availability of service/maintenance 4.05 0.83 High
Cleaning service provided 3.89 1.02 High
Average 4.11 High
The real estate developers were asked to range the marketing mix factors in
order of what they considered the most important criteria effecting their customer decision in
buying or renting the property in Phuket from 1 = most important to 7 = least important. The
result showed that the first important marketing mix factor is place factor. Second is product
factor. Third is price factor. Fourth is physical evidence factor. Fifth is process factor. Sixth is
promotion factor and seventh is person factor (Table 3.27).
86
Table 3.27 Important level of each marketing mix factors among real estate developer
respondents toward long stay tourists and expatriates regarding choosing the
real estate in Phuket
Factors 1 2 3 4 5 6 7 Total Mean Ranking
Product N 18 6 8 4 4 1 3 44 2.66
% 40.91 13.64 18.18 9.09 9.09 2.27 6.82 100 2
Price N 7 14 7 11 2 1 2 44 2.95
% 15.91 31.82 15.91 25.00 4.55 2.27 4.55 100 3
Place N 14 15 9 3 1 1 1 44 2.30
% 31.82 34.09 20.45 6.82 2.27 2.27 2.27 100 1
Promotion N - 2 6 6 8 10 12 44 5.23
% 0.00 4.55 13.64 13.64 18.18 22.73 27.27 100 6
Person N - - 3 9 13 12 7 44 5.25
% 0.00 0.00 6.82 20.45 29.55 27.27 15.91 100 7
Physical N 1 5 10 3 9 10 6 44 4.55
% 2.27 11.36 22.73 6.82 20.45 22.73 13.64 100 4
Process N 4 2 2 8 8 7 13 44 4.98
% 9.09 4.55 4.55 18.18 18.18 15.91 29.55 100 5
Remark: 1. Likert scale of 1 to 7 was used to rank the level of importance
(1 = most important and 7 = least important)
87
5. The relation of marketing mix factors and personal factors
To find the relationship of demographic variables (personal factors) with
marketing mix, T-test and One-Way Anova were applied at 0.05 significance level.
The result from T-test showed that female long stay tourists gave high important
level to place more than male long stay tourists, significantly difference at 0.00. At the same time,
expatriates female gave high important level more than male to price, place, person and physical
evidence factors. Moreover, both groups are most interested in physical evidence factors and
promotion was least interesting marketing mix factor
(Table 3.28).
For age (Table 3.29), from one way Anova testing, it found that the result of
relationship between importance level of marketing mix factors and age both long stay tourists
and expatriates indicated that age of long stay tourists has relationship with place factor. Long
stay tourists age 31-41 years old gave high important level to place more than other age groups.
Age of expatriates has relationship with product and price factor. Expatriate age 51-60 years old
gave high important level to product more than other age groups and 41-50 years old age group
gave high important level to price
(mean = 4.19) than other age groups.
For marital status (Table 3.30), there was only significantly difference with
marketing mix, that is married long stay tourists were gave high important level to price
(mean=4.06) more than other marital status groups.
For education level (Table 3.31), from one way Anova testing, there was no
relationship between education level with marketing mix at 0.05 significant level.
For occupation (Table 3.32), from one way Anova testing, there was no
relationship between occupation level with marketing mix at 0.05 significant level.
For income per year (Table 3.33), from one way Anova testing, it found that
there was one significantly difference with marketing mix, that is long stay tourists who earn
more than 70,001 US$ per year gave high important level to product factor (mean = 4.43) more
than other income groups. While income per year of expatriates has relationship with product,
physical evidence and process factors. Expatriates who earn more than 70,001 US$ per year gave
88
high important level to product, physical evidence and process factors more than other income
groups.
For country group (Table 3.34), the result of relationship between importance
level of marketing mix factors and nationality/hometown both long stay tourists and expatriates
indicated that nationality/hometown of expatriates has relationship with product and physical
evidence factor. Expatriates who come from Oceania gave high important level to product factor
(mean=4.48) and physical evidence factors (mean=4.54) more than other countries groups.
Table 3.28 The relation of important level of marketing mix factors and gender
Gender
Male Female Total
Mean Std. Mean Std. Mean Std. Sig.
Long Stay
Product 3.92 0.81 3.84 0.71 3.90 0.79 0.64
Price 3.84 0.76 3.91 0.76 3.86 0.76 0.68
Place 3.42 0.75 3.89 0.81 3.52 0.78 0.00
Promotion 2.78 0.96 2.80 0.79 2.78 0.93 0.92
Person 3.78 0.86 3.83 0.84 3.79 0.86 0.77
Physical 4.06 0.72 3.97 0.76 4.04 0.73 0.53
Process 3.03 0.93 3.17 0.93 3.06 0.93 0.46
Total 3.55 0.83 3.63 0.80 3.57 0.82
Expatriate
Product 4.08 0.70 4.11 0.70 4.0918 0.70 0.78
Price 3.83 0.67 4.23 0.76 3.9408 0.72 0.00
Place 3.33 0.76 3.58 0.81 3.398 0.78 0.02
Promotion 2.78 0.84 2.71 0.89 2.7571 0.85 0.59
Person 4.01 0.79 4.31 0.82 4.0918 0.81 0.01
Physical 4.24 0.70 4.47 0.67 4.3041 0.70 0.02
Process 3.09 0.94 3.17 0.97 3.1143 0.94 0.56
Total 3.62 0.77 3.80 0.80 3.67 0.78
89
Remark: 1. T-test were performed to identify statistically significant differences between group.
2. * indicates statistically significant differences between groups (p 0.05).
90
90
Table 3.29 The relation of important level of marketing mix factors and age of sample respondents
Age
20 - 30 years old 31 - 41 years old 41 - 50 years old 51 - 60 years old over 61 years old Total
Marketing Mix
Mean Std. Mean Std. Mean Std. Mean Std. Mean Std. Mean Std. Sig.
Long Stay
Product 3.74 0.86 4.26 0.60 3.90 0.87 3.89 0.74 3.82 0.78 3.90 0.79 0.21
Price 3.91 0.70 4.19 0.77 3.92 0.70 3.70 0.78 3.71 0.80 3.86 0.76 0.12
Place 3.60 0.69 3.83 0.66 3.53 0.78 3.61 0.92 3.16 0.71 3.52 0.78 0.02*
Promotion 2.97 0.82 2.95 0.95 2.82 0.96 2.73 0.99 2.54 0.89 2.78 0.93 0.38
Person 3.93 0.85 4.05 0.80 3.70 0.82 3.88 0.86 3.50 0.88 3.79 0.86 0.12
Physical 3.98 0.74 4.21 0.56 4.03 0.66 4.12 0.82 3.91 0.77 4.04 0.73 0.58
Process 3.12 0.99 3.48 0.98 2.83 1.02 3.12 0.68 2.91 0.91 3.06 0.93 0.13
Total 3.61 0.81 3.85 0.76 3.53 0.83 3.58 0.83 3.37 0.82 3.57 0.82
Expatriate
Product 3.83 0.65 4.02 0.67 4.16 0.73 4.31 0.69 4.19 0.69 4.09 0.70 0.01*
Price 3.99 0.81 3.80 0.65 4.19 0.66 3.88 0.73 3.88 0.79 3.94 0.72 0.03*
Place 3.44 0.76 3.39 0.77 3.53 0.79 3.31 0.74 3.15 0.99 3.40 0.78 0.46
Promotion 2.88 0.83 2.80 0.87 2.85 0.76 2.56 0.88 2.50 0.94 2.76 0.85 0.22
Person 4.15 0.73 4.15 0.79 4.17 0.79 3.88 0.91 4.04 0.72 4.09 0.81 0.28
91
91
Physical 4.29 0.65 4.28 0.72 4.36 0.74 4.28 0.68 4.35 0.72 4.30 0.70 0.95
Process 3.24 0.76 3.07 0.96 3.21 0.98 3.02 0.99 3.00 1.15 3.11 0.94 0.07
Total 3.69 0.74 3.64 0.78 3.78 0.78 3.60 0.80 3.59 0.86 3.67 0.78
Remark: 1. Anova test were performed to identify statistically significant differences between group
2. * indicates statistically significant differences between groups (p ≤ 0.05).
Table 3.30 The relation of important level of marketing mix factors and marital status of sample respondents
Marital status
Single Married Married with children Divorced/widowed/separated Total
Marketing Mix
Mean Std. Mean Std. Mean Std. Mean Std. Mean Std. Sig.
Long Stay
Product 3.86 0.86 4.00 0.75 3.72 0.74 4.14 0.64 3.90 0.79 0.29
Price 3.89 0.77 4.06 0.76 3.46 0.57 3.94 0.80 3.86 0.76 0.02*
Place 3.60 0.77 3.46 0.86 3.37 0.56 3.56 0.98 3.52 0.78 0.57
Promotion 2.84 1.01 2.86 0.79 2.59 0.87 2.72 0.97 2.78 0.93 0.65
Person 3.78 0.94 3.96 0.75 3.54 0.65 3.86 0.95 3.79 0.86 0.28
Physical 4.08 0.70 4.16 0.68 3.72 0.79 4.14 0.70 4.04 0.73 0.08
Process 3.13 1.01 3.13 0.85 2.98 0.71 2.83 1.04 3.06 0.93 0.62
Total 3.60 0.86 3.66 0.78 3.34 0.70 3.60 0.87 3.57 0.82
Expatriate
92
92
Product 4.06 0.72 4.11 0.69 4.00 0.70 4.24 0.65 4.09 0.70 0.54
Price 3.95 0.76 3.89 0.73 3.99 0.62 4.00 0.65 3.94 0.72 0.37
Place 3.42 0.79 3.36 0.83 3.44 0.64 3.40 0.76 3.40 0.78 0.94
Promotion 2.73 0.86 2.79 0.81 2.62 0.95 2.90 0.81 2.76 0.85 0.59
Person 4.21 0.77 4.00 0.84 3.93 0.93 4.16 0.64 4.09 0.81 0.19
Physical 4.35 0.64 4.27 0.75 4.22 0.75 4.33 0.70 4.30 0.70 0.77
Process 3.10 0.97 3.07 1.00 3.19 0.84 3.21 0.83 3.11 0.94 0.87
Total 3.69 0.79 3.64 0.81 3.63 0.78 3.75 0.72 3.67 0.78
Remark: 1. Anova test were performed to identify statistically significant differences between group
2. * indicates statistically significant differences between groups (p ≤ 0.05).
Table 3.31 The relation of important level of marketing mix factors and education level of sample respondents
Education level
Lower than Bachelor degree Bachelor degree Higher than bachelor degree Total
Marketing Mix
Mean Std. Mean Std. Mean Std. Mean Std. Sig.
Long Stay
Product 3.78 0.81 3.89 0.81 4.06 0.74 3.90 0.79 0.23
Price 3.77 0.87 3.93 0.64 3.88 0.74 3.86 0.76 0.58
Place 3.46 0.78 3.64 0.79 3.46 0.79 3.52 0.78 0.41
Promotion 2.95 0.94 2.61 0.91 2.77 0.90 2.78 0.93 0.18
93
93
Person 3.66 0.97 3.94 0.82 3.78 0.73 3.79 0.86 0.26
Physical 3.91 0.82 4.13 0.68 4.10 0.64 4.04 0.73 0.23
Process 3.10 0.94 2.99 0.99 3.10 0.85 3.06 0.93 0.79
Total 3.52 0.88 3.59 0.81 3.59 0.77 3.57 0.82
Expatriate
Product 4.01 0.74 4.07 0.68 4.22 0.67 4.09 0.70 0.21
Price 3.98 0.73 3.94 0.75 3.89 0.64 3.94 0.72 0.78
Place 3.43 0.75 3.44 0.74 3.28 0.88 3.40 0.78 0.39
Promotion 2.83 0.84 2.79 0.84 2.61 0.86 2.76 0.85 0.27
Person 4.04 0.87 4.10 0.79 4.13 0.78 4.09 0.81 0.30
Physical 4.20 0.73 4.28 0.74 4.46 0.56 4.30 0.70 0.10
Process 3.15 0.92 3.12 0.92 3.07 1.03 3.11 0.94 0.37
Total 3.66 0.80 3.68 0.78 3.67 0.78 3.67 0.78
Remark: 1. Anova test were performed to identify statistically significant differences between group
2. * indicates statistically significant differences between groups (p ≤ 0.05).
Table 3.32 The relation of important level of marketing mix factors and occupation of sample respondents
Occupation
Self Employed Retired Employee Owner Professional Others, Volunteer Total
Marketing Mix
Mean Std. Mean Std. Mean Std. Mean Std. Mean Std. Mean Std. Mean Std Mean Std. Sig.
94
94
Long Stay
Product 4.05 0.86 3.85 0.73 3.88 0.76 3.54 0.89 3.94 0.77 4.25 0.87 3.90 0.79 0.43
Price 3.89 0.85 3.72 0.71 4.09 0.67 3.71 0.58 4.00 0.80 4.50 1.00 3.86 0.76 0.18
Place 3.59 0.85 3.36 0.76 3.85 0.58 3.50 0.64 3.47 0.90 4.13 0.85 3.52 0.78 0.14
Promotion 2.85 0.96 2.61 0.98 3.06 0.85 2.88 0.64 2.75 0.73 3.50 1.22 2.78 0.93 0.26
Person 3.80 1.04 3.67 0.80 3.76 0.79 3.96 0.69 4.03 0.76 4.13 1.03 3.79 0.86 0.63
Physical 4.24 0.69 3.96 0.79 4.00 0.68 3.88 0.53 4.00 0.66 4.25 0.96 4.04 0.73 0.46
Process 3.12 1.16 2.99 0.79 3.18 0.75 3.04 0.92 3.00 1.06 3.50 1.00 3.06 0.93 0.89
Total 3.65 0.92 3.45 0.79 3.69 0.73 3.50 0.70 3.60 0.81 4.04 0.99 3.57 0.82
Expatriate
Product 4.05 0.69 4.15 0.78 4.09 0.67 4.15 0.72 4.10 0.71 3.50 0.50 4.50 . 4.09 0.70 0.79
Price 3.88 0.73 4.03 0.81 3.97 0.68 3.83 0.73 4.01 0.69 3.67 1.04 4.00 . 3.94 0.72 0.84
Place 3.41 0.79 3.47 0.81 3.35 0.81 3.39 0.74 3.43 0.69 3.00 1.50 4.50 . 3.40 0.78 0.75
Promotion 2.70 0.86 2.92 0.78 2.86 0.82 2.82 0.90 2.49 0.84 2.33 1.15 3.50 . 2.76 0.85 0.21
Person 3.96 0.84 3.97 0.80 4.19 0.72 4.03 0.88 4.25 0.81 3.50 1.32 5.00 . 4.09 0.81 0.24
Physical 4.36 0.72 4.23 0.75 4.32 0.68 4.26 0.68 4.32 0.67 3.67 1.26 5.00 . 4.30 0.70 0.63
Process 3.13 1.01 3.08 1.12 3.11 0.93 3.19 0.87 3.05 0.88 3.17 0.29 3.00 . 3.11 0.94 1.00
Total 3.64 0.81 3.69 0.83 3.70 0.76 3.67 0.79 3.66 0.76 3.26 1.01 4.21 3.67 0.78
Remark: 1. Anova test were performed to identify statistically significant differences between group
95
95
2. * indicates statistically significant differences between groups (p ≤ 0.05).
Table 3.33 The relation of important level of marketing mix factors and income per year of sample respondents
Income per year (US$)
Less than 30,000 30,001 - 40,000 40,001 - 50,000 50,001 - 60,000 60,001 - 70,000 More than 70,001 Total Marketing
Mix Mean Std. Mean Std. Mean Std. Mean Std. Mean Std. Mean Std. Mean Std. Sig.
Long Stay
Product 3.77 0.73 3.69 0.78 3.97 0.73 3.71 0.84 4.00 1.02 4.43 0.58 3.90 0.79 0.01*
Price 3.90 0.81 3.90 0.81 3.77 0.67 3.63 0.88 3.79 0.84 4.00 0.62 3.86 0.76 0.76
Place 3.48 0.80 3.53 0.71 3.37 0.83 3.71 0.69 3.42 0.95 3.73 0.81 3.52 0.78 0.61
Promotion 2.90 0.81 2.83 0.81 2.72 1.00 2.50 1.15 3.04 0.94 2.64 1.06 2.78 0.93 0.65
Person 3.68 0.81 3.70 0.83 3.85 0.87 3.71 1.21 4.08 0.79 3.91 0.78 3.79 0.86 0.70
Physical 3.82 0.71 3.99 0.74 4.10 0.72 4.08 0.87 4.25 0.72 4.23 0.61 4.04 0.73 0.34
Process 3.03 1.01 3.10 0.83 2.97 0.79 2.96 0.94 3.50 1.02 3.00 1.11 3.06 0.93 0.65
Total 3.51 0.81 3.53 0.79 3.53 0.80 3.47 0.94 3.73 0.90 3.70 0.80 3.57 0.82
Expatriate
Product 3.96 0.75 3.96 0.70 4.17 0.69 4.07 0.66 4.13 0.72 4.39 0.52 4.09 0.70 0.05*
Price 4.04 0.77 4.01 0.70 3.90 0.67 3.76 0.78 3.78 0.77 3.95 0.66 3.94 0.72 0.54
Place 3.26 0.84 3.52 0.65 3.52 0.71 3.17 0.90 3.43 0.59 3.30 0.99 3.40 0.78 0.22
Promotion 2.64 0.96 2.74 0.89 2.85 0.69 2.69 0.81 2.70 0.70 2.88 0.98 2.76 0.85 0.77
96
96
Person 4.02 0.86 4.02 0.89 4.20 0.70 4.05 0.76 4.13 0.63 4.16 0.91 4.09 0.81 0.32
Physical 4.20 0.74 4.13 0.71 4.48 0.64 4.26 0.78 4.20 0.86 4.55 0.43 4.30 0.70 0.02*
Process 2.74 1.00 3.21 0.97 3.04 0.87 3.17 0.87 3.38 0.79 3.48 0.91 3.11 0.94 0.01*
Total 3.55 0.84 3.64 0.79 3.71 0.72 3.58 0.81 3.68 0.75 3.80 0.78 3.66 0.79
Remark: 1. Anova test were performed to identify statistically significant differences between group
2. * indicates statistically significant differences between groups (p ≤ 0.05).
Table 3.34 The relation of important level of marketing mix factors and nationality/hometown of sample respondents
Country Group
Asia USA Canada UK
Switzerlan
d Germany Scan
Others
Europe Ocenia
Total Marketi
ng
Mix Mea
n
Std
.
Mea
n Std.
Mea
n Std.
Mea
n Std.
Mea
n
Std
.
Mea
n Std.
Mea
n Std.
Mea
n Std.
Mea
n Std. Sig.
Long
Stay
Product 3.83 0.76 3.91 0.64 4.38 0.62 4.29 0.58 4.00 0.71 3.75 0.80 3.56 0.73 4.48 0.63 3.90 0.79 0.48
Price 4.06 0.71 3.87 0.69 3.88 0.70 3.99 0.74 4.20 0 .76 3.72 0.71 3.69 0.84 4.04 0.72 3.86 0.76 0.25
Place 3.32 0.77 3.43 0.76 3.44 0.76 3.42 0.83 2.80 0.76 3.34 0.79 3.56 0.56 3.43 0.84 3.52 0.78 0.29
Promotio
n
3.00 0.70 2.91 0.75 2.41 0.85 2.76 0.93 2.70 1.30 2.50 0.89 2.94 0.62 2.59 0.87 2.78 0.93 0.89
97
97
Person 4.03 0.83 4.07 0.81 4.09 0.77 4.16 0.83 3.80 1.30 3.81 0.79 3.75 0.76 4.46 0.60 3.79 0.86 0.97
Physical 4.19 0.83 4.18 0.72 4.45 0.59 4.44 0.62 4.30 0.84 4.13 0.74 3.75 0.93 4.54 0.47 4.04 0.73 0.31
Process 3.45 0.75 2.97 0.88 2.98 1.07 3.14 0.99 2.60 0.96 2.78 0.84 3.69 0.88 3.17 1.03 3.06 0.93 0.31
Total 3.70 0.76 3.62 0.75 3.66 0.76 3.74 0.79 3.49 0.95 3.43 0.79 3.56 0.76 3.82 0.74 3.57 0.82
Expatri
ate
Product 3.83 0.76 4.38 0.62 4.29 0.58 4.00 0.71 3.75 0.80 3.56 0.73 3.91 0.64 4.48 0.63 4.09 0.70 0.00*
Price 4.06 0.71 3.88 0.70 3.99 0.74 4.20 0.76 3.72 0.71 3.69 0.84 3.87 0.69 4.04 0.72 3.94 0.72 0.55
Place 3.32 0.77 3.44 0.76 3.42 0.83 2.80 0.76 3.34 0.79 3.56 0.56 3.43 0.76 3.43 0.84 3.40 0.78 0.78
Promotio
n
3.00 0.70 2.41 0.85 2.76 0.93 2.70 1.30 2.50 0.89 2.94 0.62 2.91 0.75 2.59 0.87 2.76 0.85 0.06
Person 4.03 0.83 4.09 0.77 4.16 0.83 3.80 1.30 3.81 0.79 3.75 0.76 4.07 0.81 4.46 0.60 4.09 0.81 0.22
Physical 4.19 0.83 4.45 0.59 4.44 0.62 4.30 0.84 4.13 0.74 3.75 0.93 4.18 0.72 4.54 0.47 4.30 0.70 0.03*
Process 3.45 0.75 2.98 1.07 3.14 0.99 2.60 0.96 2.78 0.84 3.69 0.88 2.97 0.88 3.17 1.03 3.11 0.94 0.06
Total 3.70 0.76 3.66 0.76 3.74 0.79 3.49 0.95 3.43 0.79 3.56 0.76 3.62 0.75 3.82 0.74 3.67 0.78
Remark: 1. Anova test were performed to identify statistically significant differences between group
2. * indicates statistically significant differences between groups (p ≤ 0.05).
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6. Respondents$ comments from long stay tourists and expatriates
The respondents were also asked in two open-ended questions regarding to their
recommendation to real estate developer and the Thai government. The high levels of
recommendation are home and garden should be spacious at 10.74 percent, followed by quality of
construction at 9.73 percent, accurate detailed knowledge of sale representative at 9.06 percent
and sustainable development at 8.72 percent (Table 3.35).
Table 3.35 Recommendation to real estate developer
Factor Frequency Percentage
Home and garden should be spacious 32 10.74
Quality of construction 29 9.73
Accurate detailed knowledge of sale representative 27 9.06
Sustainable development and Eco friendly housing 26 8.72
Be honest and straight forward 25 8.39
Sales representative should speak fluency English 24 8.05
Designed should be modern and various designs 18 6.04
Efficient service and available for contact 17 5.70
Installed electrical to international standard 17 5.70
Maintained price and one price for foreigners and Thais 13 4.36
Have a clear rented agreements 12 4.03
Not over build space between house area and green area 12 4.03
Lower running costs 8 2.68
Should not develop areas along the coastline 8 2.68
Less billboard advertising 6 2.01
More magazines advertising 6 2.01
Needed professional agents 5 1.68
Response time to customer 5 1.68
Do not clear property plots of all foliage 4 1.34
Streamline communication process 4 1.34
Total 298
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Other comments included:
IMinimize noise and dirt from nearby construction site.J
ILonger warranty on constructionJ
IQuite different which culture or nations to whom you are targeting. For
example, Koreans are accustomed to live in modernized house so they need a
minimum facilities such as Internet, car parking and interiors.J
IMore objects in the north side of Phuket. More Thai/Bali style objects.J
ISilent air conditioning.J
IThink about upper and middle class instead of targeting only upper class of
people.J
IThey should try to make more prospections and maintain good relation
between the customers and other real estates companies.J
ISome agents should work harder to meet clients wish.J
IMore single floor house with larger rooms, area of greenery around house.J
IStop producing glossy brochures with pretty pictures and little information and
always no location map.J
IPhuket needs housing that is affordable to Thais as well as farangJ
Some comments from long stay tourists and expatriates in Phuket to real estate
developer showed the environmental awareness of the respondents toward real estate
development.
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IIf developers does his research and know his market, all the needs to do is to act
responsively with regard to the environment and water supply.J
ITake care of the natural environment, reduce use of cemented areas. Do not cut
down local trees.
IThink about the future of Phuket (many projects do not take a good care of
environmental and people around the area), respect tradition (Phuket is not
Bali).J
Some of the comments also showed the important of efficiency staffs in real
estate business.
IAccept that when a customer gives a maximum price, this is their maximum
price and not try to show/sell houses at a higher price.J
IMake sure the staff understand all aspects of the property and the law so they
can explain to the customer. This also needs a high level of English language
skills.J
II think there are already a lot of advertisings. Having a good staffs who explains
everything is also very important.J
The result of the recommendation from long stay tourists and expatriates in
Phuket to Thai government shows that the recommendation was high on developing clarity
regarding legal ownerships rules for property at 21.72 percent, followed by providing every
related document to English version at 17.60 percent, maintained a consistent policy at 14.60 and
offering loans to foreigner at 12.73 percent (Table 3.36).
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Table 3.36 Recommendation to the Thai government
Factor Frequency Percentage
Developed clarity regarding legal ownerships rules 58 21.72
Provided government document in English 47 17.60
Maintained a consistent policy 39 14.60
Offered house loan to foreigners 34 12.73
Allowed foreigners to own land for residential purpose 27 10.11
Allowed foreigners to own property without Thais 18 6.74
Increased land lease agreement to 90 years 17 6.37
Law enforcement regarding to development in protected areas 15 5.62
Extended visa for long stay tourists 12 4.49
Total 267
Moreover, many of the comments showed dissatisfaction with the present laws
in Thailand regarding the real estate in Phuket.
IWith the current Foreign Business Act, it is very difficult for foreigners to feels
secure making a large investment in property. If foreigners have lived in Thailand for long time,
they should be allowed to own their properties/land.J
IGuarantee of protection from bad/corrupt business practices.J
IMake the situation clear. Better still allow foreign ownership rather than create
a confusing situation where the foreigner has to lie to own.J
INeed for proper planning, avoid incompatible developments or uncontrolled
development, infrastructure needs to keep pace with development ie. Roads,
electricity, telecommunications.J
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Respondents$ comments from real estate developer
The respondent was asked three open-end questions regarding to areas that
require improvement, the recommendation to the Thai government regarding real estate issues
and the respondents� opinion toward long stay tourists and expatriates market in Phuket. Table
3.37 shows the recommendation from real estate developer regarding to the real estates� issue that
require improvement.
The recommendations� result was high on land ownership and illegal proprietary
at 30.14 percent, set a clear policy in real estate business at 16.44 percent, following by housing
loans available for foreigner at 10.96 percent, and allow long lease hold and lack of enforcement
of building regulation at 9.59 percent.
Table 3.37 The recommendation from real estate developer of real estate�s problem
Factor Frequency Percentage
Land ownership and illegal proprietary right 22 30.14
Set a clear policy in real estate business 12 16.44
Housing loans available for foreigners 8 10.96
Allows long lease hold 7 9.59
Lack of enforcement of building regulations 7 9.59
Helped in maintaining the land price 6 8.22
The difficulty in ownership transferring 5 6.85
The cost of housing materials in Phuket 3 4.11
High competition for real estate markets 3 4.11
Total 73
Some of other comments that are concerned with the real estate issues in Phuket
are as below.
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IThe foreigner feels insecure owning the property in Thailand.J
IThe government policies and laws are unstable. Moreover, the exchange rate is
unpredictably.J
IThe policy of 30% money assure for the foreigner is delayed their decision in
buying the real estate in Thailand.J
IThe bank checks the source of income too much.J
IThe government should promote more oversea marketing.J
IThe government should promote Thailand as the center of real estate
development in Asia and promote on advertising.J
IThe government should make a clear understand of the situation in Thailand to
other countries and build a positive image.J
IThe government should give more confidence to the investor in purchasing and
investing in Thaiand.J
ITAT should actively promote Thailand as an ex-pat friendly place.J
The result of table 3.38 showed the developer opinion toward how important of
long stay tourists and expatriates supported the real estate market in Phuket. The result showed
both positive and negative sides. The highest result was on the positive side as long stay tourists
market and expatriates helps booth up the economic at 30.67 percent, followed by the negative
side of this market as it increased the real estate price at 22.67 percent, next positive side was to
create more career to local at 18.67 percent, and customers have more choices at 17.33 percents,
and Thais cannot effort to purchase the land at 10.67 percent was the other negative sides.
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Table 3.38 The opinion of real estate developer toward long stay tourists and expatriates to
real estate market in Phuket
Factor Frequency Percentage
Boost up the economic 23 30.67
Increased in real estate price 17 22.67
Created more career to local 14 18.67
Customers have more choices 13 17.33
Thais cannot effort to purchase the land 8 10.67
Total 75
Moreover, many developers revealed that long stay tourists and expatriates are
their potential market as below.
IThe long stay markets and expatriates is a good market in Phuket as they are
also our main target market too.J
IThis market is good for real estate development as the market has a chance to
expand more.J
IMore than 80% of our customer is foreigners. Therefore, the long stay market
and expatriates is our important target market. We can see that this market give
many benefits to the real estate market in Phuket.J
IReal estate market in Phuket is opened for the foreigner as Phuket has a good
location which attracts many investors.J
Furthermore, some of the comments showed the negative outcome of long stay
tourists market and expatriates market toward the real estate in Phuket as below.
IThe price of real estate has incredibly increasing which effects to Thais as
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they could not afford to purchase the land.J
IWe do not want the foreigner to hold the land right as it will effect to Thais in
the future .J
IWe should sell land to the foreigner in a good proportion as if all belong to the
foreigner then Thais cannot afford the land later on. The government should set a
clear policy. Although, freehold policy is good for the real estate developer but
there are both good and bad foreigner. Some of them might just want to come to
Thailand for illegal business.J
IThai government needs to think much of what is the most important products of
Thailand itself, why Thailand is attractive for the foreigners from developed
country, and better to keep them all unspoiled so they can keep Thailand as one
of the most attractive destination in the world as well.J
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CHAPTER 4
SUMMARY
4.1 Introduction
The aim of this chapter is to illustrate conclusion, discussion, and
recommendation derived from the research findings. A total of 392 usable surveys were collected
comprising 147 long stay tourists who were traveling in Phuket and 245 expatriates who have
worked in Phuket. From the study, can be discussed the result of the research purpose with 3
objectives: firstly, to gain an insight in the market for real estate by long stay tourists and
expatriates in Phuket. Secondly, to identify the factor influencing the decision making process of
long stay tourists and expatriates, and thirdly, to gain the information of effective real estate
marketing strategies for long stay tourists and expatriates. Lastly, recommendations for marketing
strategies guideline and further study on relevant topics are also mentioned.
4.2 Summary
In this study, the researcher collected data from 2 population groups, which are
long stay tourists and expatriates, and real estate developer. The result can conclude as follows:
4.2.1 Conclusion of the study result from long stays tourists and expatriates
in Phuket group
The data that collected from long stay tourists and expatriates are demographics,
behavior, access to the information of real estate, and factors that influence long stay tourists and
expatriates on choosing the real estate project.
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From 147 long stay tourists sample, more than half of the samples were from the
male gender with age mostly over 51 years old and come from Europe. Mostly were single, with
lower than bachelor degree, unemployed/retired, earned
30,001 - 40,000 US$ per year. While from 245 expatriates, more than half of the samples were
male with age mostly from 31 - over 40 years old and come from United Kingdom. Mostly were
single, with bachelor degree, company employee, earned 40,000 - 50,000 US$ per year.
In consideration of tourism behavior, most of long stay tourists spent time in
Thailand more than 10 - 20 weeks a year. The majority of long stay tourists live in Chalong and
Rawai area, as it is quieter than any other places. They also prefer to live in this area in the future.
Moreover, most of expatriates have been working in Thailand 1-5 years. The majority of them
currently live in Chalong and Rawai areas. They prefer to live in Kamala and Surin areas more
than Chalong and Rawai area, as it is closer to their working places. Both groups of sample like
Thai style architecture and pay less than 15,000 baht per month for their rental accommodation.
Whereas, many expatriates have already own the house in Phuket.
The access to the information of real estate, most of long stay tourists and
expatriates got the information from friends and family, and Internet. Moreover, many expatriates
also prefer to drive around to look for the property project. Below is the result of the important of
marketing mixs.
Product: The overall importance level of product factors to long stay tourists8
decision making in choosing the real estate in Phuket was at moderate importance level.
Credibility of the developer was the highest importance level of product factors that influences
long stay tourists and expatriates8 decision making in choosing real estate in Phuket. While the
overall importance level of product factors to expatriates8 decision making in choosing real estate
in Phuket was high importance level.
Price: Value for money was the highest importance level of price factors among
long stay tourists and expatriates. And the average importance level of price factors for long stay
tourists was at moderate, and the average importance level of price factors for expatriates was at
high level.
100
102
Place: Its location by the sea or nearby was at high important level in both long
stay tourists and expatriates for choosing the real estate in Phuket. And the average importance
level of place factors for both groups was moderate.
Promotion: Knowledge and presentation from the sale representative was the
highest importance level of promotion factors for both groups. And the average importance level
of promotion factors was at moderate level.
People: In consideration of people factors, easy communication with the staff
was the highest important level of people factors for both long stay tourists and expatriates.
Moreover, the average importance level of people factors for both groups was at high level.
Physical evidence: For physical evidence factors, the highest importance factor
in both long stay tourists and expatriates was atmosphere around the property and surrounding.
And the average importance level of this factor was at high importance level.
Process: The highest importance level of process factors in both long stay
tourists and expatriates was security service provided. And the average important level of this
factor was at moderate important level.
The relationship between important level of marketing mix factors (7Ps) and
personal factors
By using Chi-Square test and one way Anova at 5% (0.05) significance level as
a tool for analyzing the relationship between important levels of marketing mix factors that are
product, price, place, promotion, people, process, physical evidence, and personal factors from
147 long stay tourists respondents and 245 expatriates respondents in Phuket which included
gender, marital status, age, education level, income per year, occupation and
nationality/hometown. The results found that there are 15 cases of statistically significant
differences at 0.05 significance level and are summarized as follows:
1. Female long stay tourists gave high important level (mean=3.89) to place than male
at moderate level (mean=3.42)
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2. Female expatriates rated price at high importance level (mean=4.23) than male
(mean=3.83).
3. Female expatriates rated place at high importance level (mean=3.58) than male
(mean=3.33).
4. Female expatriates rated person at high importance level (mean=4.31) than male
(mean=4.01).
5. Female expatriates rated physical evidence at high importance level (mean=4.47)
than male (mean=4.24).
6. Long stay tourists who are between 31-41 years old rated place at high importance
level (mean=3.83) more than other age groups.
7. Expatriates who are between 51-60 years old rated product at high importance level
(mean=4.31) more than other age groups.
8. Expatriates who are between 41-50 years old rated price at high importance level
(mean=4.19) more than other age groups
9. Married long stay tourists gave high importance level (mean=4.06) to price more
than other marital status groups.
10. Long stay tourists who earn income per year more than 70,001 US$ gave high
importance level (mean=4.43) to product factors more than other income groups.
11. Expatriates who earn income per year more than 70,001 US$ gave high importance
level (mean=4.39) to product factors more than other income groups.
12. Expatriates who earn income per year more than 70,001 US$ gave high importance
level (mean=4.55) to physical evidence factors more than other income groups.
13. Expatriates who earn income per year more than 70,001 US$ gave high importance
level (mean=3.48) to process factors significantly difference more than other income
groups.
14. Expatriate from Oceania rated product at high importance level (mean=4.45) more
than other nationalities.
15. Expatriate from Oceania also rated physical evidence at high importance level
(mean=4.54) significantly difference more than other nationalities.
104
4.2.2 Conclusion of the study result from real estate developer
The researcher collected 44 questionnaires from each real estate developers,
which have its target market as long stay tourists and expatriates, and provide the accommodation
per unit of more than 10 millions baht. The data that collected are the development type,
advertisement method, and factors that influence long stay tourists and expatriates on choosing
the real estate project.
From 44 real estate developers, many real estate projects are located at Kamala,
Chengtalay and Surin, and Phuket town and Kathu areas. The majority type of property are single
house and Villa (72.27%) with the price of 10.1 - 30 millions (81.82%). More than half of the
qualified real estate developments have modern architecture style. Most of the development
employed their advertisement method by property show and Internet.
For the product factor, credibility of the developer was at the highest importance
level (mean=4.59) of product factors that real estate developers8 thought influenced their
customer decision making in choosing real estate in Phuket. And the average importance level of
product factors to real estate developers in Phuket was at high importance level.
Furthermore, value for money was at the highest importance level (mean=4.68)
of price factors among real estate developers. And the overall importance level of price factors for
real estate developer was at high importance level. For place factors, the convenience of
transportation and its location by the sea or nearby were rate at a high important level that real
estate developers8 thought influenced their customer decision making in choosing real estate in
Phuket. And the overall importance level of place factors for real estate developer was at
moderate importance level.
In promotion factors, knowledge and presentation from the sale representative
was rated at high importance level (mean=4.23) of promotion factors for real estate developers.
And the overall importance level of promotion factors was high level. In consideration of people
factors, efficient/courteous service staff was at the highest important level of people factors for
real estate developers. Moreover, the overall importance level of people factors was at high level.
105
For physical evidence factors, the highest importance factor was general
appearance of the property. And the overall importance level of this factor was at high importance
level (mean=4.50). Finally, the highest importance level of process factors for real estate
developers was security service provided. And the overall important level of this factor was at
high importance level (mean=4.11).
In conclusion, the real estate developers8 thought most important factors
influenced their customer decision making in choosing real estate in Phuket were place, product
and price in order.
4.3 Discussion
4.3.1 Objective 1 To gain an insight in the market for real estate by long
stay tourists and expatriates in Phuket
Phuket Island is one of Asia8s most desirable dream home destinations, with
magnificent scenery, stunning beaches, diving reefs, as well as some of the world8s most
exclusive recreational facilities including spas, world class golf courses, marinas and a wealth of
fine restaurants and shops. Phuket has established itself as a world class tourist destination and
has been renowned as one of the fastest growing property market in Asia but it now faces the
possibility of falling behind as other destinations open up their resort property markets. Hence,
the real estate developers need to develop new products and services to match the expectations of
their purchasers. From the finding, many long stay tourists and expatriates want beachfront
property, of either condominium or villa types, which are provided high standard property
management. One solution to resolve this concern is to develop residential units for sale in
conjunction with a hotel operator so that property owners can leverage on the marketing and
management skills of the hotel operator while entitled to the full range of hotel services.
It found that Hong Kong buyers account for about half of all luxury property
sales in Phuket, with the rest mainly coming from Europe. But since it8s much more difficult and
expensive to hold road shows or advertise in Europe, Hong Kong is the obvious place to launch a
106
project. Hong Kong residents are also looking for an escape as more pollution seeps across from
industrial zones in Southern China. For those who can afford it, a direct flight to Phuket8s clean
air, beautiful sea and laid-back lifestyle is an appealing way to flee the hectic urban center (Kate,
2007). Moreover, potential future demand in Phuket property market will likely come from within
the region such as China, Singapore and Hong Kong. The real estate market in Phuket will
become more competitive as a growing number of countries start to target this market, such as
Vietnam where developers such as Banyan Tree and Laguna are developing residential products
targeting foreigners looking for retirement and/ or second homes.
Land prices have been increasing in Phuket during past few years. The buyer
expects to pay around 2 million baht per rai in south coast Phuket and around 3-4 million baht in
west coast of Phuket. Nevertheless, land price along the coastline can be very expensive above 10
million baht per rai. There are a lot of properties for sale around the island. The price starts from
1.5 million baht up to high end market at 50-150 million baht. The research found that there were
608 units of luxury resorts in Phuket launched in 2004-2005, 431 units were sold prior to the
tsunami, 61 units were sold during January-April, 2006 and 110 units were sold during May-
December, 2006. An average property price was 15,749,038 baht, making the total value of the
development during 2004-2005 9.254 billion baht (Pornchokchai, 2006).
As the global competition of real estate for long stay tourists and expatriates are
getting competitive, Thai governments should examine ways to lower the bar on foreign property
ownership, provide financing for foreign property purchasers and offer new visa rules, which are
directly linked with property investment. The key to Thailand maintaining its position as Asia8s
leading resort property market will be a combination of thoughtful environmental control and less
restrictive ownership regulations with greater foreign quota available for the sale of
condominiums, provision of leasehold terms with lengths of up to 90 years and permission
granted to foreign purchasers to finance property acquisitions.
107
4.3.2 Objective 2 To identify the factors influencing the decision-making
process of long stay tourists and expatriates
From the literature review, young and old people had more free time for
traveling (Mill&Morrison, 1992) is supported the findings that the majority of long stay tourists
in Phuket are people mostly over 51 years old and partly below 30 years old as well as
unemployed/retired accounted for 41.50% of long stay tourists. The reason is that young people
would like to explore and go to new places, whereas, old people who are normally already retired
would like to take a long vacation and learn something new during their annual vacation
(Natthakan, 2005)
The majority of long stay tourists and expatriates live at Rawai and Chalong
areas as it is quiet than other parts of Phuket and also near by the beach. The most preferable
place to stay for long stay tourists is still Rawai and Chalong areas, whereas, expatriates thought
that the most desire place to stay nowadays is Kamala and Surin. From the literature review,
Kasikorn Research Center survey (2006) showed that the key factor to the purchasing decision is
location of projects. As we can see that people will choose the location of the property to satisfy
their need. Long stay tourists will want to relax and stay close to the beach, whereas, expatriates
will want the accommodation where is nearby their working place and out of traffic problem.
The favorite style of architecture for long stay tourists and expatriates is Thai
style. Therefore, the developer should emphasize on Thai style as to satisfy the need of the
customer. The majority of long stay tourists and expatriates pay less than 15,000 baht per month
for their rental accommodation. Most of them stay in the apartment or rental house. Whereas, 53
percents of expatriates have already purchased the house in Phuket. Most of them are the
company owner who has their income of 70,000 US$ per year. This can be explained by
Maslow8s hierarchy of needs as people firstly wants the physiological need which are shelter,
cloths and food. Then their purchasing behavior will be persuaded by secondary motive of safety
needs, social needs as to associated with others and esteem needs for fulfillment of ego and status
(Chon and Sparrowe, 2000). That is one of the reasons why the real estate developer should target
their market to the business owner who has high income.
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From the theory of consumer8s buying behavior by Kotler (2003), it stated that
consumer8s buying behavior also influences by social factors as the reference groups, family and
social roles and statuses. These have supported the finding of how long stay tourists and
expatriates found real estate information in Phuket. Most of them found the information by word
of mouth as from their friends and relative and driving around. Therefore, the real estate
developer should emphasize more on customer after sale service by making the present customer
happy with their product.
From the findings, we found that the important factor that effect long stay
tourists and expatriates in choosing real estate in Phuket are the same. The most important factor
for both groups is place, price, product, physical evidence, person, process and promotion
respectively which conforms with the finding of Patcha (2005) that the factor influencing on
apartment selection in Kathu district of Phuket are place, price and product. The finding is also
agreed with the Tanom (2004) that the factor influencing high class and medium class income in
choosing the apartment in Bangkok are place, price and product.
The study also showed that the most important product factors for long stay
tourists and expatriates in choosing the real estate in Phuket is credibility of developer. Most of
them thought that the project with high credibility is more reliable and secure their investment.
These have supported the beliefs and attitudes from Frederick Herzberg model that a belief is a
descriptive thought that a person holds about something. People8s beliefs about a product or brand
influence their buying decision (William, 1966). From the literature review, Kotler and Gertner
(2002) stated that all successful brands have social, emotional and identity value to users: they
have personalities and enhance the perceived utility, desirability and quality of a product.
The most important price factor is value for money. Whereas, expatriates
emphasizes in this factor more than long stay tourists. Besides, married or female are also
interested in price factors. The most important place factor is its location by the sea or nearby.
Moreover, long stay tourists are more interested this factor than expatriates. Natthakan (2005)
stated that sea, sun and sand have always been popular with the international tourists, especially
snowbirds group who come from cold countries during their winter season. One of the latest
major growth markets are the USA and northern Europe who were inspired by climatic
motivation which normally are dominated by older people.
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The most important promotion factor is knowledge and presentation from sale
representative. Expatriates and female are more interested this factor than long stay tourists and
male. Therefore, the real estate company should make sure that their sale staffs fully understand
the project, well presented as well as can speak foreign language fluently. This is because easy
communication with the staff is the most important person factor. Therefore, if the real estate
companies hire the staff, who can speak several foreign languages, it will be benefit to the
company later on. The result also showed that long stay tourists thought that easy communication
with the staff is highly important than expatriate. As we can see that the majority of long stay
tourists have their education level lower than bachelor degree, therefore, they might not all speak
fluently in English and prefer someone to talk in his or her own language.
The most important physical evidence factor is atmosphere around the property
and surrounding. Furthermore, the result showed that female expatriates with income of more
than 70,000 US$ are more interested in physical evidence factor than male expatriates as well as
expatriates who come from Australia and New Zealands. Finally, the most important process
factor is safety and security for both long stay tourists and expatriates groups. Moreover, safety is
the second needs of human needs (from Maslow8s theory Ihierarchy of needs). People want to
satisfy their needs and safety is the second important of basic need. Even the property looks very
beautiful and is situated in a stunning location, but it is not worthwhile to purchase if it is not safe
enough to stay. Expatriates with family emphasize in safety than others.
Furthermore, the factor influencing long stay tourists and expatriates in choosing
the real estate in Phuket is also different by personal factor, which are people who has high
education level and high income are interested in overall marketing mix factors than people who
have low education level and low income. This is because people with high education and high
income highly expect the quality of product and services, as they want to satisfy their need.
Moreover, the accommodation can also express their status.
4.3.3 Objective 3 To propose effective marketing strategies for real estate
developer targeting long stay tourists and expatriates.
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The findings showed that the majority of real estate projects are located at
Kamala, Surin and Chergtalay area. The real estate develop choose try to attract expatriate as their
target market as the result from long stay tourists and expatriates revealed that Kamala, Surin and
Chergtalay is the preferable area for them to purchase the real estate. Moreover, the development
in Chalong and Rawai areas should attract long stay tourists market to purchase their second
homes in this area as this specific group prefer quiet, sea, sun and sand with affordable price.
The real estate product is intangible so that consumer cannot experience it and
try it before they decide to buy. Therefore, the real estate developer will need to encourage their
target market to purchase the product on the basis of an image and information. According to this
study, most of real estate developer employed its advertising methods by Internet and property
show. In contrast, majority of long stay tourists and expatriates found the real estate information
from their friends and family, Internet and driving around by themselves.
Therefore, the real estate developer might reconsider about their advertising
methods by property show as it is costly and less effective. The Internet is one of the most
effective way but it should be easy to access, various information and interactive possibly.
Moreover, the developer should always create a pleasant look in and around the developing area
as both long stay tourists and expatriates also prefers to drive around and get their feeling with the
property before making the decision. Hence, the marketer should consider the advantage,
limitation and cost before choosing the advertising methods.
From the findings, the result showed that the important factor for real estate
developer is place, product, price, physical evidence, process, promotion and person respectively.
Whereas, the important factor that effect long stay tourists and expatriates in choosing real estate
in Phuket is place, price, product, physical evidence, person, process and promotion respectively.
From this study, we can see that real estate developer underestimates the value
of price and person factors. In this case, the real estate developer should concentrate more on
price factor. The groups of market, which are interested in price factor, are expatriates, female,
married and with age 41-50 years old. Moreover, the group of market that they should be
regarded for person factors are female expatriates.
From the study of important level of marketing mix factors (7Ps) for real estate
develop and comparing to the long stay tourists and expatriates, the result showed as below.
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Product factors: Credibility of the developer was the highest importance level
of product factors that real estate developers8 thought influenced their customer decision making
in choosing real estate in Phuket which is same result from long stay tourists and expatriates in
Phuket.
Price factors: Value for money was the highest importance level of price factors
among real estate developers, which is also the same result from long stay tourists and expatriates
in Phuket.
Place factors: The convenience of transportation was the highest importance
level of place factors for real estate developer, whereas, the long stay tourists and expatriates
thought that its location nearby sea was the highest important. In this case, we can see that both
long stay tourists and expatriates prefer to live nearby the seaside, especially, long stay tourists
group. Any development nearby seaside or lake would sell its property better than the
development where far from the seaside. Therefore, the property location is one of the most
important marketing strategies for each develops.
Promotion factors: In promotion factors, knowledge and presentation from the
sale representative was the highest importance level of promotion factors for real estate
developers the same as the result from long stay tourists and expatriates.
Person factors: In consideration of person factors, efficient/courteous service
staff was the highest important level of people factors for real estate developers. In contrast,
foreign language speaking staff was the highest important level of people factors for long stay
tourists and expatriates. Johan (2007) noticed that many developers have been focusing on Hong
Kong, Singapore and UK customers and also that although most Scandinavians speak great
English they prefer to buy from fellow Scandinavian agents. Therefore, the real estate company
should make sure that their sale representatives know their product well, understand legal matters
and communicate well.
Physical evidence factors: For physical evidence factors, the highest
importance factor was general appearance of the property, which is the same result of long stay
tourists and expatriates in Phuket.
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Process factors: The highest importance level of process factors for real estate
developers was security service provided, which is the same result of long stay tourists and
expatriates in Phuket.
Therefore, the more marketers know about the factors affecting their customer8s
buying behavior, the greater their ability to design attractive product and service offering, to
define and target meaningful market segments, and to develop marketing programs to fit the
concerns and desires of those segments (Walker, 2005).
4.4 SWOT Analysis of Real Estate in Phuket
4.4.1 Strengths
Location within the region: Phuket is Thailand8s largest and most beautiful
island (Phuket Tourism, 2006). It is surrounded by 32 smaller islands. Its natural charm and
beauty combined with a superior geographic location has attracted many foreign investors to own
the property in this beautiful island.
Economic resilience: Even Thailand had the difficulty with economic failed in
1997 and Tsunami in 2004 but the real estate market throughout the island has seen prices in
respect of land and properties increase over the last five years.
Cash market: Most property sales are transacted in cash. Some developers offer
their clients lines of credit from financial institutions outside Thailand.
Domestic infrastructure: The domestic infrastructure, such as electricity, water
supply and telecommunications are well established in Phuket. Moreover, the transportation
network is easy and has been expanding many new domestic routes, which allow Phuket easy to
access to the whole island.
Variety of consumer choices: There is a huge range of size, price, design,
architecture, qualities and location of properties in Phuket.
Quality construction: The vast majority of their developments have been
carefully planned with designs that equal and often surpass similar projects anywhere in the
world, comparing the cost of luxury accommodation in Phuket with similar location.
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Established developers: At the present, there are about 63 international-grade
developments already in place, which buyers can see other projects completed by developers.
Lifestyle: Phuket is offering a luxurious tropical lifestyle at very affordable
prices. There are white sand beaches, aquamarine seas, jungle, waterfalls and marinas.
Pricing: People can holiday or retire in a villa with private pool, cook,
housekeeper and driver at an average cost of living about a third of the UK prices. From an THB
8 million condominium, minutes away from the beach to an exclusive seaside villa. Phuket's
properties sell at a fraction of Mediterranean prices on a direct property-for-property comparison.
4.4.2 Weaknesses
Zoning: Zoning laws pertaining to density, elevation and roof height have only
been introduced over the past 5 years. While buyers cherish these laws, there is little information
available as to how they are implemented and penalties for evasion are not clearly defined.
Monsoon: Heavy downpours during the months of August - November may
slow down construction to some extent. There also power cuts in some areas during the wet
months.
No freehold for foreigners: Under Thai law, foreigners cannot own land but the
foreigners can establish a company with 51% Thai ownership, by investing US$1 million in Thai
securities like stocks or companies or by getting specific approval from the Thailand Board of
Investment (BOI).
No financing for foreigners: The Bank of Thailand has always maintained a
specific directive: no loans to foreigners without work permits. However, some local banks issue
loan to foreigners through his/her established company or foreigners, who have Thai partner.
Moreover, the Bangkok Bank has announced an initiative available from its Singapore branch,
which will enable foreigners to attain financing for leasehold landed property.
Phuket International Airport: It needs to expand its runway in order to take
advantage of the emerging European market. The runway cannot support the amount or size of
crafts that fly direct from Europe.
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Traffic: Traffic is becoming more congested in certain areas of the island.
However, many main roads and arteries are currently being widened but some commercial
districts like Phuket Town and Patong seems difficult to handle the traffic problem as the space is
limited.
4.4.3 Opportunities
Low Cost Airline: The growth of low cost airline carriers such as AirAsia,
Tiger, Nok Air and Jetstar, has helped to revitalize tourism in Phuket. Direct flights to Phuket
from Australia are already operating, Dragon Air is resuming service with direct daily flights to
Hong Kong and there are plans underway for direct flights to the Middle East in 2007.
World standard medical services: Phuket offers excellent medical services for
a fraction of the costs of western institutions such as Bangkok Phuket Hospital and Phuket
International Hospital. Furthermore, Thailand's largest international hospital Bungrumrad
Hospital in Bangkok claims that in 2004 it treated 350,000 foreigners, mainly European and
Middle-Eastern patients.
Location: Phuket's location in the South-East Asian region is convenient for its
major buyer group. Phuket lies within five hours flying time of 32% of the world's population. It
is also connected to Asia's biggest hub, Bangkok by way of numerous domestic flights daily.
Rental yield: Phuket enjoys significant yields from the short-term rental market
during the peak tourist seasons. Rental yields are high and instant but confined to certain times of
the year. A property with sea views can yield up to 8%; without sea views, 4-5%. Many
developments offer rental management as part of the after-sales service package; they market the
properties to holiday makers, handle all the reservations, pick-ups, concierge services etc.
Retiring baby boomers: The number of retiring baby boomers has positive
impact to tourism and real estate market in Phuket as those people have been looking for second
homes or retirement home, where they can enjoy their lifestyle and provides cheaper cost of
living than their own country.
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4.4.4 Threats
Uncertainty and political instability: There are concerns and uncertainties in
Thailand property market today such as the Foreign Business Act, the reserve requirement on
short-term capital flow, property rights for foreigners, and quasi-legal buying of hilly land in
resort destination.
Currency / Economy: The threats to the Phuket property market are similar to
those in any country. The main threats to any market are currency and economy.
Over zealous development
There is some fear among property experts that it is all happening too fast and
that the development of infrastructure cannot maintain the pace.
High competitions: Bali and Malaysia are re-emerging as a formidable
opponent, providing lifestyle and investment opportunities of equal proportions to Phuket.
Natural disasters: The Asian tsunami was the biggest disaster on the island.
While there was no significant physical damage reported to residential developments, events like
these send ripples of concern through the investment market, which is heavily reliant upon
tourism.
Risk of terrorist attacks: There is also a danger of negative impacts of terrorist
attacks in the region to property market and tourist industry in Phuket. Especially, the conflict
between religious adherer in the southernmost part of Thailand could lead negative impact toward
Phuket tourism and expatriate and long stay tourists8 decision making in order to purchase the
property in Phuket. Therefore, the government and real estate developer should have continuity
plan regarding this issue.
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4.4.5 Summary of SWOT analysis
Strengths Weaknesses
• Location within the region
• Economic resilience
• Cash market
• Domestic infrastructure
• Variety of consumer choices
• Quality construction
• Established developer
• Lifestyles
• Pricing
• Zoning
• Monsoon
• No freehold for foreigners
• No financing for foreigners
• Phuket International Airport
• Traffic
Opportunities Threats
• Low cost airline
• World standard medical services
• Location
• Rental yield
• Retiring baby boomers
• Uncertainty/Political instability
• Currency/Economy
• Over zealous development
• High competitors
• Natural disasters
• Risk of terrorist attacks
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4.5 Recommendations
4.5.1 Recommendation of Marketing Strategies for real estate developers
In accordance to the result of the study, the researcher would like to recommend
suitable marketing guideline for real estate developers in Phuket. The recommendations are
presented in regards to each of the seven marketing mix factors as follows.
1. Product: The real estate developer should target its marketing strategies
targeting for long stay tourists and expatriates by market segmentation as different groups of
buyers have different needs, characteristic, or behavior that might require different marketing
mix. This will help the real estate developer build the right relationship and provide the right
product to each target customer. The researcher suggested that the real estate developers could
group its market by geographic segmentation as the result of the study found that most long stay
tourists and expatriates come from Europe, USA & Canada and Asia. The other effective way to
segment the target group is by demographic segmentation. This divides the market into groups
based on variables such as age, gender, family size, income, education and nationality etc. This
will help the real estate developer to understand its target customer better and deliver more
customer value. For example, the respondent recommends that Koreans are accustomed to living
in modernized homes so they have a basic requirement for such as Internet, car parking and
modern interior design.
Moreover, the real estate developer should differentiate and position itself as
providing superior value. This will help the real estate developer gain a competitive advantage
over its competitors. The researcher suggests that the real estate developer should emphasize its
position on quality and differentiate its product on sustainable development. The study found that
many long stay tourists and expatriates are seeking quality and sustainable development. For
example, the respondent commented that the real estate developer should take care of the natural
environment, reduce use of cemented areas and do not cut down local trees.
Furthermore, the result of the study also showed 4 cases of statistically
significant differences at 0.05 significance level on product factors for expatriates who are
between 51-60 years old, long stay tourists and expatriates who earn income per year more than
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70,001 US$ and expatriates from Oceania. Therefore, the real estate developer should maintain its
credibility and make sure that these groups of product factors which are good interior design and
house layout, size and space of accommodation, telephone line connected to high speed internet,
enough parking, swimming pool and garden area are provided to 4 groups of customer. Therefore,
understanding the demand and expectation of long stay tourists and expatriates will aid the
success of the real estate developers business in Phuket.
2. Price: The study found that most respondents concentrated on value for
money. Therefore, the real estate developer should set up a reasonable price by relying on the
demand of target market and value-added services as the main factors. For example, the
additional charges like maintenance of common areas, gardening, water, electricity, housekeeper,
and additional services should not be overpriced. Moreover, the result of the study also showed 3
cases of statistically significant differences at 0.05 significance level on price factors for female
expatriates, expatriates who are between 41-50 years old and married long stay tourists Therefore,
the real estate developer should set the reasonable price and provide favorable payment term and
finance if possible to this group of customer.
The researcher also likes to recommend segmented pricing strategy by location
where real estate developer can charge different prices for a different location. This will help the
real estate developer increase profitability and accommodate the need of long stay tourists and
expatriates. For example, a property with sea views is more expensive than one with garden view.
Furthermore, the real estate developer should not use a discount price strategy like general
products and the setting price should be same for both Thais and foreigners customers.
3. Place: The study found that most of respondents preferred to stay in Rawai,
Chalong, Kamala and Surin areas. Therefore, this area would be a good investment for both Thais
and foreigners. As foreigners are not able to legally own land in Thailand themselves, therefore,
Thais could consider building rental homes for long stay tourists and expatriates around these
areas, as they also prefer to live by the sea or nearby. Moreover, the result of the study also
showed 3 cases of statistically significant differences at 0.05 significance level on place factors
for female expatriates, female long stay tourists and long stay tourists who are between 31-41
years old. Therefore, the real estate developer should emphasize on basic location factors such as
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the convenience of transportation, the location near by the community, shopping mall and
customer8s working place to these specific group.
4. Promotion: The real estate developer should decide how much to spend for
promotion. The most popular approaches are to spend what the company can afford, to use a
percentage of sales or to base promotion on competitors8 spending. Then the real estate developer
can divide its budget to several powerful promotional tools, which are suitable for their project.
The survey showed that most luxury real estate developers in Phuket use property shows to
communicate to the target market, but the study of respondent8s behavior found that many long
stay tourists and expatriates found the information about their accommodation from family and
friends, Internet and driving around. Therefore, the real estate develop should emphasize more on
maintaining their good reputation, creating customer royalty, visible advertising or branding
property and building a good atmosphere around and inside the property at all times as many long
stay tourists and expatriates prefer to drive around themselves.
Moreover, it should have an effective website which is fast, accurate, a good
search facility and provides enough information about the project and services provided, and at
the same time have the sales pitch to sell the product. Furthermore, the researcher would like to
suggest that the real estate developer should concentrate more on public relations which can be
very effective and economical. It can also reach many prospects who avoid salespeople and
advertisements. For example, the respondents commented that there should be less billboard
advertising and stop producing glossy brochures with pretty pictures and little information.
5. Person: The result of statistically significant differences at 0.05 significance
level showed that female expatriates rated people at high importance level. Therefore, the real
estate developer should make sure that their staff are professional speak foreign languages and be
polite and courteous. It should be convenient for the customer to contact the company staff. One
of the expatriate females commented that the real estate developer needs to make sure that the
staff understands all aspects of the property and the law so they can explain this to the customer
clearly. This also requires a high level of English language skills.
Moreover, the staff should be well-trained professionals who work to build and
maintain long-term customer relationships. Therefore, the company should also provide various
120
training programs to their staff such as language skills, selling techniques, interpersonal skills,
updated real estate information regarding property, laws and regulations. Furthermore, the staff
should have good service minded and be honest.
6. Physical evidence: The study showed that physical evidence factors which
are, atmosphere around the property and surroundings and general appearance of the property, is
very important to long stay tourists and expatriates in choosing the real estate in project.
Moreover, the result of the study also showed 3 cases of statistically significant differences at
0.05 significance level on physical evidence factors for female expatriates, expatriates who earn
income per year more than 70,001 US$ and expatriates from Oceania. Therefore, the real estate
developer should maintain attractiveness of its project design, decoration and surroundings at all
times so to gain attention from these specific groups.
7. Process: The study found that security service provided is the most important
process factors for long stay tourists and expatriates in choosing the real estate in Phuket.
Therefore, the property developer should consider security when designing housing and provide
good safety locks. The properties should also provide 24 hour security guard service and CCTV
cameras through the property site.
Moreover, the result of statistically significant differences at 0.05 significance
level showed that expatriates who earn income per year more than 70,001 US$ rated process at
very high importance level. Therefore, the real estate developer should ensure that their property
provide security services, cleaning services, maintenance services, and additional services such as
access to a fitness center, spa, restaurants etc.
4.5.2 Recommendations for the government and provincial
Tourism Thailand has been promoting long stay tourists as it is linked to the
health and holidays concept. Both long stay tourists and expatriates are a high level niche market,
which brings increased revenue to many different tourism activities. Therefore, the government
should actively support long stay tourists and expatriates in regards to ownership of real estate
121
issues. The researcher would like to offer these recommendations based on the result of the study
as follows:
1. The government should develop and promote the good image of Phuket by
conducting advertising and public relation campaigns to increase good consumer perception in
Phuket8s image as a friendly and safe city for long stay tourists and expatriates.
2. The government should make a clear understanding of the situation in
Thailand to other countries and give more confidence to the investor in purchasing and investing
in Thailand.
3. The local government should increase the efficiency of infrastructure, expand
the transportation capability throughout the island and increase supporting services for long stay
tourists and expatriate such as developing a real estate center, which is a partnership between
government and real estate developers in order to facilitate the real estate news to long stay
tourists, expatriates, real estate develops and local people. Moreover, it should create a Phuket
real estate official website to respond to any enquiries regarding to real estate matters.
4. The local government should educate local people about the tourism, foreign
language skills and increase their awareness of being a good host.
5. The local government should shorten and simplify the process for transferring
land and provide visa support for long stay tourists and expatriates.
6. The local government could create special events for repeat tourists and to
increase expatriate8s life style such as Asia8s Expat Golf Tournament.
7. The tourism related organizations should produce a brochure and tourism
manual, which provides information to long stay tourists and expatriates who own property in
Phuket.
4.6 Recommendation for Further study
The result of this study provided the general facts and information on broad
marketing strategies for real estate developers targeting long stay tourists and expatriates in
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Phuket. To make it more accurate, the researcher would like to recommend for further study as
below:
1. It is recommended that each type of property such as house, townhouse,
condominium, serviced apartment etc. should be studied in more detail and specifically for what
factors contribute to the decision of long stay tourists and expatriates to purchase or to rent each
type of property. This is because each type of property is different in nature and style.
2. It should study the impact of foreign real estate market towards the local
community.
3. Laws and limitations in real estate ownership for foreign investors should be
studied. Foreign investment needs to be encouraged and a solution must be a well-planned policy
that specifically dissuades speculation but allows genuine inflows of capital for trading and asset-
based investment that includes property investment (Philips, 2006)
4. From the questionnaire of this thesis, the promotion should be divided into
advertising, sales promotion, public relations, personal selling and direct marketing. This will
help the researcher collect more accurate results for the study.
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Appendix A: General information of Phuket (Source: Tourism information from Tourism Authority of Thailand, Phuket)
Phuket is Located approximately 862 kilometers south of Bangkok is Phuket, Thailand's largest island, which is often dubbed as the pearl of the Andaman, or the pearl of the south. Its natural resources- rocky peninsular, limestone cliffs, white powdery beaches, tranquil broad bays and tropical in-land forests contribute to making it the South's wealthiest, busiest, most visited and most popular island and province.
Nestled in the tropical zone off the west coast of the southern part of Thailand in the Andaman Sea and the Indian Ocean, the province covers an area of approximately 543 square kilometers (excluding small islets). It is estimated that Phuket Province covers an area of approximately 590 square kilometers if its 39 other small islands are included. The islands total length, from north to south, is estimated at 48.7 kilometers and approximately 21.3 kilometers wide. Phuket is divided into 3 administrative counties namely Amphoe Muang, Amphoe Thalang and Amphoe Kathu
Boundary Phuket borders on Phang-nga Province to the north. The other 3 sides are
encircled by the Andaman Sea the place where many of the best diving sites are located. The island is connected to Phang-nga Province by Sarasin Bridge and Thep Krasattri Bridge.
Climate
Staying on the island is easy, as there are only two seasons in a year - the rainy season (May to October) and the hot season (November to April). The low season of phuket is between September and October as they are the wettest months. The best period for a visit, is from November to February, when it is possible to see the clear blue sky, feel the fresh sea breeze
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and marvel at the crystal clear water while lying on powdery, palm-fringed beaches. Average temperatures ranges between 23°C and 33°C.
Phuket's topology is exceptional with 70 percent of its area covered with mountains which stretch from north to south and the remaining 30 percent being plains located in the central and eastern parts of the island. The island does not have any major rivers except for a total of 9 brooks and creeks. Historical background of Phuket
Most geologists believe that the area known as Phuket today was once a cape that extended into the Andaman Sea. Geographical formations gradually changed the capes location, finally detaching it from the mainland. A famous Greek philosopher, Claudius Ptolemy, was the first person who mentioned the cape in his book written in the year 157. The cape was locally referred to as Jung Ceylon, which was located between latitudes 6 N and 8 N (the present site of Phuket Island).
During the 16th century, the island was a popular trading port for tin with Chinese, Portuguese, Dutch, English and French traders flocking to the island. Apart from serving as a meeting point for traders from Europe, Central Asia and China, Phuket also attracted ambitious immigrants, especially those from Portugal and China, to work in the tin mines. With its colorful history, visitors admire the Sino-Portuguese style architecture in the city especially those buildings located along the Thalang and Yaowarat Roads.
Thalang town was surrounded by Burmese troops who invaded the coastal area in 1785. It was under the leadership of Chan, the widow of the governor, and her sister, Muk, who united local residents and successfully fought and drove the invaders out of Phuket. It took over 30 days for the defending troops of Phuket, under the command of Chan and Muk, to claim their victory. As a result of such heroic deeds, noble titles were granted to Chan and Muk as Thao Thep Krasattri and Thao Si Sunthon respectively. To honor them, a monument was established at Tha Ruea Intersection, 12 kilometers to the north of Phuket City in 1966. They are still highly respected by Phuket residents even today.
When Phuket was elevated to a town in 1850, it attracted more immigrants from Thalang and nearby communities. In 1894, Phuket was promoted to be a Monthon administrative unit under the supervision of the central administrative body (located in Bangkok). In 1902,
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Phraya Ratsada Korsimbi, a Sino-Thai businessman who contributed to developing the modern city of Phuket was appointed Governor of Phuket. He also helped to improve the welfare of local residents and set up the market system in the countryside. In 1916, Phuket became a province.
The tin mining industry has gradually failed to generate economic growth in Phuket, especially after 1985 when the price of tin fell by half. However, with its natural resources, Phuket later emerged as a tourist destination with great potential. This polished pearl of the Andaman is truly a destination that provides visitors with memorable experiences. The islands long history has shaped the distinctive Phuket of the present with its diverse ethnic groups, culture, architectural influence, and fine cuisine. With approximately 35 percent of the population being comprised of Thai-Muslims, it is possible to see an equal number of Wats (Thai temples) located next to Mosques.
Tourist attractions
� Amphoe Krathu Hat Kalim (Kalim Beach) Located north of Patong Beach is a secluded beach dotted with rocks and coral
reefs. Accommodations and restaurants are available. Another interesting stopover is Freedom Beach, which is located around the head of Laem Ka Sai Rot and is accessible by a chartered long-tailed boat.
Hat Kamala (Kamala beach) Located approximately 26 kilometers from Phuket City, Hat Kamala is a
relatively secluded 2-kilometer beach that is suitable for total relaxation. Accommodations are available.
Hat Patong (Patong Beach) This Beach is the most developed, most vibrant, most visited beach of Phuket
that never fails to impress visitors. Located approximately 15 kilometers from the city, the beach has a wide range of accommodations and shopping arcades, and provides magnificent leisure activities and energetic night-time entertainment. It is a picture perfect postcard view of a 3-
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kilometer long white sandy beach that is perfect for swimming, lazing, and enjoying challenging water sports such as jet skiing, windsurfing snorkeling, sailing, and parasailing. In addition, Patong offers gastronomical delights for seafood lovers. There are plenty of good restaurants located along the beach.
Krathu Cultural Conservation Center Located approximately 7 kilometers from Amphoe Kratu town, the center is
located in the compound of Ban Kratu School. This is where a collection of ore, mining equipment, utilities, etc. are put on display. The center opens from 8.30 a.m. to 4.30 p.m. Call 076 321035 for more details.
Namtok Krathu This relatively small waterfall with a simple view but unique atmosphere is
located approximately 4 kilometers from Amphoe Krathu. The entrance to the waterfall is located next to the Log Palm Golf Club. Restaurants and basic tourist amenities are available.
Phuket Fantasea Located on Kamala beach, Phuket Fantasea is dubbed as the ultimate nighttime
cultural theme park of Phuket. It has won several awards from the TAT, among the distinctive ones are Best Attraction Thailand Tourism Award (for the years 2000 to 2003). This large-scale night time amusement center is spread out over an area of 140 acres near the village of Kamala Bay, or just 4 kilometers north of Patong. Attractions include the Culture-Illusion Stage Show, Fantasy of the Kingdom, a spectacular buffet restaurant Golden Kinnaree Restaurant, shopping village the enchanted Festive Village, Cultural Parade & Street Shows, Traditional Games and Carnivals, Handicraft Demonstrations & Live Performances (performed in Palace of the Elephants).
� Amphoe Mueang Ao Chalong This bay, which has the islands largest and most visited pier, is located 11
kilometers south of town. From this pier, holidaymakers can get chartered boats to some nearby islands south of Phuket. The bay area is dotted with dive shops, a few travel agencies and superb
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seafood restaurants. Although the bay has a stunning setting and relaxing ambience, swimming is not recommended here. Accommodations are available at the Phuket Youth Hostel.
Hat Karon (Karon Beach) Located south of Patong Beach, Hat Karon is a curving beach that lies
beautifully in the sun with small sand dunes, casuarinas and palm trees. The crescent bay is the beach's signature that drawing travelers attention. From May to October, the beach may be affected by serious undertows, as the bay open. Watch out for those warning flags before going swimming or surfing at the southern end of the beach. During the high season, the beach is ideal for relaxation, swimming or sunbathing. A wide range of accommodations, from top-end to budget and mid-range, are available. Other facilities such as nightclubs, restaurants and other evening entertainment are located along the beachfront road.
The beach is located approximately 20 kilometers from the town and can be reached by taking either s or buses from Ranong Market in Phuket City. Transportation is available from 7.00 a.m. to 5.00 p.m. and costs approximately 20 baht / person / trip. Taking a taxi to the town is another option. It costs approximately 200 baht to Phuket City and 150 baht to Patong Beach.
Hat Kata (Kata Beach) Located approximately 17 kilometers from Phuket City are Kata Noi (Small
Kata) and Kata Yai (Big Kata) Beaches. Both are renowned for snorkeling to see the coral, tropical fishes and the seas eco-system. Also worth visiting is Ko Pu, a small uninhabited island located off Laem Sai. Most visitors find snorkeling along the islands rich coral reef enjoyable. Diverse beach activities are available on both beaches. Accommodations on Hat Kata are set amidst tropical and cliff settings. Visitors can choose to stay in budget to top end accommodations according to their preference. Well known hotels located here are Club Med and the Boathouse.
Had Nai Harn Located a few kilometers from Kata Beach, next to Phromthep Cape,
approximately 18 kilometers from town is Hat Nai Han, an extra-ordinary beach that has white powdery sand and crystal clear water. The beach borders on two charming landscaped lagoons surrounded by rubber trees and other tropical plants. As the beach has not yet been fully
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developed to its full potential, it is less crowded, more peaceful, thus is ideal for people seeking solitude. Holidaymakers are not recommended to swim during the monsoon season from May to October. Watch out for the red flag! This beach can be reached by songthaeos, which leaves from the intersection of Ranong Road and the fountain circle. The fare is 25 baht / person / trip. In addition, visitors can also charter tuk-tuks which costs a lot more at 150 baht to 200 baht / trip.
Had Rawai Located approximately 17 kilometers from town is the less crowded, more
peaceful and less commercial beach with a second-to-none pristine beach. The Beach is home to a well-established community of Phuket s Chao Le people (sea gypsies). In addition, from this beach visitors can charter boats to explore other offshore islands. Hat Laem Kha, located to the northeast of the beach, is the departure point for those wishing to visit Ko Lon, and Ko He. Laem Phromthep, Phukets landmark, is located at the southern end of the beach. This cape is an ideal spot for diving and snorkeling.
Khao Rang A small hill located northeast of the town, Khao Rang offers a fascinating view
of Phuket City. Inside the park is a fitness park, restaurants and souvenir shops. The statue of Phraya Ratsada Korsimbi, (Ratsada Korsimbi Na Ranong) the Governor of Phuket between 1890 and 1909 is also situated here.
Ko He Located southwest of Cape Panwa, the island is famous for its white powdery
beach and rich coral reefs which are ideal for swimming, snorkeling, scuba diving, fishing and other water sports. As the island is not affected very much by the monsoon, would be visitors can enjoy traveling to the place year round. Ko He has become a popular one-day tour from Phuket as it is only half an hour from the Chalong Pier. It is also dubbed the Coral Island by tourists. Accommodations and basic tourist facilities are available, contact the TAT Phuket Office for more up-to-date information.
Ko Kaeo A small island located approximately 3 kilometers from Rawai Beach, south of
Laem Phromthep where a replica of the Lord Buddha's Holy Footprint is enshrined. This quiet,
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white, sandy beach complimented by rich coral reef is a major tourist attraction. The island can be reached by taking a 30-minute boat trip.
Ko Racha
The island consists of Racha Yai and Racha Noi islands located south of Phuket. Ko Racha Yai (Big Racha) has an enchanting beach located on the west between the valleys that resembles horseshoes. The area is known as Ao Bungalow which is famous for its white powdery beach and crystal clear water. Visitors can marvel at the delightful panoramic view of the whole island from the vantage point at the peak of the mountain located south of the bay.
Ko Racha Yai is the ultimate place to explore the wonders of the underwater world, especially at Ao Siam, Ao Tue and Khon Kae. Accommodations are available.
Ko Racha Noi (Small Racha) is located just 10 kilometers from Big Racha Island. Originating from the accumulation of coral stones, the island has more rocky hills than beaches, thus the island is more suitable for fishing. To get there, visitors can charter long-tailed or speed boats from Chalong Pier. Alternatively, they can buy a package tour from reliable travel agencies.
Ko Si-re An interesting site to visit where visitors can explore the daily life of Chao Le as
it is the oldest and biggest community of Phukets sea gypsies. With an area of approximately 20 square kilometers, the island is located approximately 4 kilometers southeast of Phuket and is separated from the main island only by the small Thachin Canal. The mountain-top temple on the island houses a big Buddha image in the reclining position. The island is not an ideal place for swimming, but is perfect for discovering the sea gypsies' way of life, especially at Laem Tukkae.
Laem Phromthep or Phromthep Cape Literally translate as Brahmas Cape, Laem Phromthep is perhaps one of Phuket's
most important landmarks. There is a saying that you havent been to Phuket unless you visit Laem Phromthep. It is here that visitors soak up the sun and savor the breathtaking panoramic view of the Andaman Sea from the islands southern-most tip. The Cape is crowded especially in the evening, as it is a popular observation point at sunset. Laem Phromthep is located approximately 2 kilometers from Rawai Beach.
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Phuket Butterfly Farm Located approximately 3 kilometers from Phuket City via Yaowarat Road and
the Sam Kong intersection, the farm proudly presents a unique collection of tropical creatures such as butterflies and insects. The farm opens daily from 9 a.m. to 5 p.m. The entrance fee is 150 baht for adults and 60 baht for children. Call tel. 0 7621 5616, or 0 7621 0861 for more information.
Phuket City and old buildings Phuket City is a fascinating city that can be explored on foot or by traditional
means of transportation, tuk-tuk or Sino-Portuguese architecture that is evident in the citys shop houses provides the town with a charming atmosphere and a late 19th century ambience. For visitors interested in strolling along the city, start the trip at the central post office and walk west along Thalang Road, then turn south at the Standard Chartered Bank building and walk towards Yaowarat Road. Continue the trip to Fountain Circle, then head west to Ranong Road and proceed to Patipat Road, which connects with the historic Krabi Road.
Phuket Cultural Center Located in the compound of the Rajabhat Institute of Phuket, the Center features
an exhibition of Phukets intriguing history. Highlights of the daily lifestyles, traditional houses, household utilities and Thailand's history are exhibited. A library is located on the ground floor where books on the history, culture and arts of Phuket can be found. Call 076 211959 for more details.
Phuket Sea Shell Museum Phuket Sea Shell Museum is located near Rawai Beach on the island's
southwestern shores. On display are private collections of seashells from Thai waters (off Phuket Island itself). They are considered the most sought-after shells by collectors. In addition to such the collection, seashells from other parts of Thailand and other parts of the world are also on display. The main attractions at this Museum are the worlds largest golden 140-karat pearl, the worlds earliest known life form seen in sections of sedimentary rock containing shell fossils and a gigantic 250-kilogram shell. The museum is open daily from 8 a.m. to 7 p.m. Call tel. 0 7638 1266 or 0 7638 1274 for more information.
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Phuket Submarine Phuket Submarine operates 5 dives daily and carries forty eight passengers into
the waters southeast of Phuket. The dives will be to a depth of the thirty meters. The submarine is fully air conditioned and boasts the latest technology available in tourist submarines. Large 72 centimeter viewing ports and LCD screens enhance the viewing experience for the passengers. Schools of tropical fish and soft coral formations are a highlight of the dive site.
Phuket Zoo Located on the way to Chalong Bay, the Zoo features a collection of Asian and
African mammals and birds. Elephant and crocodile shows are performed daily. The entrance fee is 400 baht for adult and 200 baht for children. Call 0 7638 1337, 0 7638 1227 for more details.
Saphan Hin public park located by the sea at the end of Phuket Road, Saphan Hin is a
recreational park for both locals and tourists. The Tin Mining Monument dedicated to the memory of Captain Edward Thomas Miles, the Australian who brought the first dredge to Phuket in 1909, is located inside the park. The Saphan Hin Sports Center is also located here.
Thai Village and Orchid Farm Located on Thepkasattri Road, approximately 3 kilometers from Phuket City is
an extraordinary place for culture lovers. The village provides stunning classical Thai dance performances, sword-fighting, Thai boxing, southern customs and elephant shows. Handicrafts and traditional mining techniques are also featured. The orchid farm outside is worth exploring. The performances are at 11.00 a.m., 2.00 p.m. and 5.30 p.m. The fees are 400 baht for adults and 200 baht for children. Call 076 214860 for more information.
The Viewpoint The most famous observation point of the 3 beaches, Kata Not, Kata and Karon,
is located on the road half-way between Nai Harn Beach and Kata Noi Beach. From this spot, an intriguing view of the 3 beaches and Ko Pu has constantly impresses visitors.
Wat Chalong Phukets most popular and famous temple, Wat Chai Tararam, or Wat Chalong,
was built in 1837. Located approximately 8 kilometers from the city, the temple houses the famous Luang Po Cham, a monk who helped the locals fight the Ang Yi rebellion during the
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reign of King Rama V (in 1876). A recent addition to the temple is a 61.4-meter high chedi containing the Phra Borom Sareerikatat relic, a piece of the Lord Buddha's bones brought over from Sri Lanka. The chedi is a mixture of southern, central and northeastern architectural styles and is the first in this region to house the holy Buddha's relic
� Amphoe Thalang Ao Bang Thao A large open bay that is the location of one of Phuket's longest beaches, Ao
Bang Thao has a long history related to the economy of the island. Previously a tin mining area the location has been transformed into an area where Phuket's luxurious resorts and golf courses, especially Laguna complex, are located. Additional accommodations outside Laguna at the bays south end are also available.
Ban Thao Thepkasattri recent discovery has identified the house of Phuket's heroine, Thao
Thepkrasattri. The place is located at Ban Kien, Tambol Thepkrasattri. To get there from the town, travel along Thepkrasattri Road, at kilometer 19 marker, take the road that leads to Ban Riang and proceed for approximately 2 kilometers.
Hat Surin Located approximately 24 kilometers from town and only in a short distance
north of Laem Sing is an enchanting beach lined with casuarinas trees. Isolated and secluded, the beach is ideal for sunbathing and relaxing. The beach, however, is not suitable for swimming as it has a steep sloping beach and the weather fluctuates during the southwest monsoon. In addition, there is a golf course which was established in the reign of King Rama VII.
Several Muslim fishing communities are located nearby and Mosques are situated to the west of the beach. The local Mosque, Matsayit Mukaram, is worth visiting as it is an elegant whitewashed structure with lacquered wooden doors.
Laem Sing
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Located just one kilometer from Surin Beach, Laem Sing is a relatively small quite beach perfect for a break from the crowd. Laem Sing has a white sandy beach that glitters in the sun and is dotted with uniquely shaped rocks.
Sirinat National Park The park is located approximately 30 kilometers from Phuket City. Occupying
an area of 90 square kilometers, the park has a 13-kilometer beach. Formerly known as Nai Yang National Park, it was declared a National Park on 13 July 1981.
Hat Nai Thon Nestled on the rim of a secluded bay south of the park is another popular tourist
attraction, especially for day trippers. Nai Thon Beach has a unique natural setting with both ends of the beach being protected by granite outcrops that serve as a natural shield making the bay a perfect nursery for both marine life and corals. The beach is suitable for swimming. For those seeking utmost solitude, it's not that far. Just walk a few hundred metres to Hin Kruai Bay to savor the moment.
Hat Nai Yang Located to the south of Mai Khao Beach, Hat Nai Yang is a serene and isolated
bay ideal for swimming and family picnics. The beach itself is impressive, as it is fringed by shady pine trees. Nearby coral reefs make explorations into the underwater world worthwhile. In addition, sea turtles are inhabitants in the area. The parks headquarters is located here.
Hat Mai Khao Also known as the Airport Beach (Hat Sanambin), the beach is located at the
northern end of Phuket Island. As Phukets longest beach, Hat Mai Khao is famous for its tranquil beach set in a relaxing ambience. Camping grounds are provided. The beach is not recommended for swimming as it slopes steeply. Hat Mai Khao is home to wonderful creatures such as sea cicadas and turtles. In addition, it is an egg-lying ground for sea turtles.
The Beach can be reached by taking the Thepkasattri Road on to the Thao Thepkasattri Bridge, then taking a left turn at the directional sign pointing to Mai Khao Beach or follow the Thepkasattri Road that passes the Airport intersection. At the Sarasin Bridge, turn left and proceed for approximately 3.5 kilometers.
Hat Sai Kaeo
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Located to the north, next to Mai Khao Beach, Hat Sai Kaeo is a long white powdery beach naturally decorated with groves of pines along the shore. Ideal for relaxation, the beach is Phuket's northernmost beach.
Mangrove Forest Located in the area of Tha Chatchai, the mangrove forest covers an area of
approximately 320 acres. Situated on the islands northern tip, the place offers interesting nature trails for those wishing to learn more about the forest that protects the land and natures sea creatures.
Thalang National Museum Located near the Two Heroines Monument, the museum features a permanent
exhibition of life in old Phuket and ancient artifacts and remains discovered on the coast as well as materials used during war with Burma (Myanmar). It is open daily except national holidays from 8.30 a.m. to 4 p.m. For more information call 076 311426 or 076 311025. Admission fee is 30 baht / person.
The Khao Phra Thaeo Wildlife Sanctuary Located in Thalang District, approximately 20 kilometers from Phuket City, the
sanctuary covers an area of 13,925 rai (5,570 acres) of rich and fertile land which is home to several types of wild animals.
The compound was declared a wildlife sanctuary in July 1969. The special Palm called Chao Mueang Thalang Palm (Lang Khao Palm) can only be seen here. Major attractions in the sanctuary include:
Namtok Ton Sai The waterfall is located approximately 22 kilometers from the town. A relatively
small waterfall that looks its best in the rainy season, Namtok Ton Sai is shaded by big and small trees which make it ideal for relaxation. To get there from Thepkasattri Road, turn left at Amphoe Thalang intersection and proceed for approximately 3 kilometers. Call 076 311998 for more information.
Namtok Bang Pae A relatively small cascade located amidst the dense woods, the waterfall is also
home to the Gibbon Rehabilitation Center. To get there from the town, follow the route to the
142
Two Heroines Monument, then turn right to Tambon Pa Khlok and proceed for approximately 7 kilometers.
For nature enthusiasts, the sanctuary has mapped out some walking trails. Further information may be obtained from the Nature Study Center.
The Two Heroines Monument This monument was established by local residents in 1966 to honor the heroic
deeds of Thao Thepkasattri and Thao Srisunthorn. It is located at the Tha Ruea intersection, Amphoe Thalang.
Wat Phra Thong The temple is a popular attraction for both visitors and local residents. Located in
the temple is the upper half of a large Buddha statue which seems to emerge from the ground. Legend has it that during the invasion of Thalang town in 1785, the Burmese made several attempts to excavate the statue in order to take it back to Burma. Each time they dug into the ground, swarms of hornets would swoop on them and they had to give up in the end. Later, the visible part of the statue was covered with gold by the villagers and has remained as such until today.
The temple is located approximately 20 kilometers from Phuket City. Travel along Thepkrasattri Road, upon reaching the Thalang District Office, turn right and proceed directly to the temple.
143
Appendix B: Phuket Tourist Map
144
Appendix C: Real estate developer in Phuket
Source: phuket index, (2007)
Location Name
Phuket town and Kratue
Ban Prangthong
Baan Rommai Chailay
Horisun Ville
Chesterton Petty
Royal Phuket marina
The Boat Lagoon Park Residence
The Woodlands (Nine Hills)
Baan Suan Loch Palm
The Heritage Suites
Dalaburi
Hole 7
Sri Suchart Grand View
Villa Daorung
Villa California
The Royal Place
Patong and Kalim
Aroonpat
Patong Natural Home
Patong View Talay
LHorchideeH
Piyalai Villa Phuket
Villa Santi
Patong Loft Condominium
Kata and Karon
145
Kata Gardens
Katamanda
The Breakers at Kata Beach
The Heights
Kata Gardens
Mövenpick Residence
Kamala, Chengtalay and Surin
Laguna Phuket Property Sales
Lakewood Hills
Layan Estate
Layan Gardens
Kamala Beach Estate
Orchard Springs
Infinity Height
Tamarind Hills
Laguna Village
The Park Villas
Chom Tawan
Lotus garden
Luna Phuket
The Chava
Baan Talay
Baan Wana
Botanica Villas
The Coolwater
The Plantation
Rawai, Naiharn and Chalong
Baan Rom Yen
Coral Tree Properties
146
The Rawana
East West Properties Co., Ltd.
Land & Houses Park Phuket
Kalita at Rawai Coast
Dartmouth Villas
Na Sai Yuan
Patak Villa
Phu Chao Fa Residence
Phuket Nature Home
Serenity Terraces
Sun Palm Village Co., Ltd.
The Pier
Rawai Villas
Tamarind Valley
Wanphum Estate Co., Ltd.
Talang, Pa-kok and Ao-por
Tawan Views
Panason
Bann Suan Yoo Cha-Roen
Krissana Parkland
Naiyang and Maikao
Turtle Cove
The Estate
Phuri Phimaan
The Village Coconut Island
West Sands
Pearl of Naithon
Panwa and Ao Makan
Sri Panwa
147
Tamarind Phuket
148
Appendix D: Questionnaires for Long Stay Tourist and Expatriates
Questionnaire
Topic : What are the main influences effecting the decision to purchase / rent a property in
Phuket
I am doing research for my Master degree thesis in JBusiness AdministrationK.
My thesis topic is JReal estateHs marketing strategies for long stay tourists and expatriates in Phuket.K
I would very much appreciate your co-operation in completing this short questionnaire. The answers that you give will be used for academic purposes only and will be kept confidential. The entire process should take less than 15 minutes. Thank-you. ______________________________________________________________________________
_
Part 1
Please mark (X) next to the answers that are most applicable to you. Multiple responses are allowed. 1. How would you categorize yourself from the following? ( ) 1. Long Stay Tourist; Non Resident of Thailand but a regular visitor to Phuket. ( ) 2. Expatriate; Living and working in Phuket; spending more than 180 days/year here.
149
2. Are you a full time resident of Phuket? ( ) 1. If yes, How long have you lived in Phuket?_________Years ( ) 2. If No, How many weeks per year do you visit Phuket?________________weeks 3. In what type of accommodation do you stay in? ( ) 1. Own house ( ) 2. Rental house ( ) 3. Hotel room ( ) 4. Apartment or condominium ( ) 5. Time share ( ) 6. Guesthouse or bungalow ( ) 7. Others, please state, ______________ 4. If you are renting your property, how much do you pay per month? ( ) 1. less than 15,000 Baht ( ) 2. 15,0001 - 30,000 Baht ( ) 3. 30,001 - 45,000 Baht ( ) 4. 45,0001 - 60,000 Baht ( ) 5. More than 60,001 Baht 5. How many people stay in your accommodation including yourself? ( ) 1. 1 ( ) 2. 2 ( ) 3. 3 ( ) 4. More than 4 6. In which area of Phuket do you live currently? ( ) 1. Phuket town and Kathu ( ) 2. Patong and Kalim ( ) 3. Kata and Karon ( ) 4. Kamala, Surin and Chengtalay ( ) 5. Rawai, Naihan and Chalong ( ) 6. Talang, Pakok and Ao-por ( ) 7. Naiyang and Mai kao ( ) 8. Panwa and Ao-Makam ( ) 9. Others, please state_______________ 7. Which area of Phuket would you consider most desirable for renting or owning a property? ( ) 1. Phuket town and Kathu ( ) 2. Patong and Kalim ( ) 3. Kata and Karon ( ) 4. Kamala, Surin and Chengtalay
150
( ) 5. Rawai, Naihan and Chalong ( ) 6. Talang, Pakok and Ao-por ( ) 7. Naiyang and Mai kao ( ) 8. Panwa and Ao-Makam ( ) 9. Others, please state _______________ 8. What is your favorite style of architecture? ( ) 1. Thai style ( ) 2. Modern ( ) 3. Bali ( ) 4. European ( ) 5. Country ( ) 6. Contemporary ( ) 7. Others, please state __________________ 9. How did you find out about your accommodation? ( ) 1. Magazine ( ) 2. Television ( ) 3. Internet ( ) 4. Newspaper ( ) 5. Brochure and Poster ( ) 6. Marketing staff or sale executive ( ) 7. Friends and family ( ) 8. Others, please state____________ Part 2 The influential factors on the customer:s decision making in choosing a real estate. Please rate from very important to least important in the table below.
Degree of importance No.
Factors Very
important Important Medium Less
important Least
important Product
2.1 Creditability of the developer 2.2 Interior design 2.3 Overall size of the
accommodation
2.4 Space in each room
151
2.5 Telephone line connected to high speed internet
2.6 Enough parking 2.7 House included swimming pool 2.8 Own garden area 2.9 Layout of the house Price
2.10 Value for money 2.11 Availability of finance 2.12 Favorable payment term 2.13 Electric and water rate Place
2.14 Its location by the sea or nearby 2.15 Its location in the golf course or
nearby
2.16 Near by working place 2.17 Near by community and
shopping mall
2.18 The convenience of transportation
Promotion
2.19 Sale promotion ex: discount, gift voucher etc.
2.20 Advertising sign 2.21 Knowledge and presentation
from sale representative
2.22 Advertising on newspaper 2.23 Website promotion Person
152
2.24 Efficient/courteous service staff 2.25 Convenience in contacting staff 2.26 Easy communication with staff Physical
2.27 Atmosphere around the property and surrounding
2.28 General appearance of the property
Process
2.29 Cleaning service provided 2.30 Security service provided 2.31 Availability of
service/maintenance
2.32 Spaces common area 2.33 Additional service e.g.
swimming pool, fitness center, spa and restaurant etc.
2.34 What are the most important criteria effecting your decision in buying or renting property in Phuket? Please rank in order of importance from 1 = most important to 7 = least important. ( ) 1. Product ( ) 2. Price ( ) 3. Place (location) ( ) 4. Promotion ( ) 5. Person ( ) 6. Physical ( ) 7. Process Part 3 Comments/Suggestions (please, identify).
3.1 Could you make any suggestions or recommendations to real estate developers/real estate agents on elements that they should try to improve upon? __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
153
_____________________________________________________________________________________________________________________________________________ 3.2 Could you make any suggestions or recommendations to the Thai government regarding this issue, on how they can help or improve the current situation? _______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Part 4 Personal Information 1. Gender ( ) Male ( ) Female 2. Marital status ( ) Single ( ) Married ( ) Married with children ( ) Divorced/widowed/separated 3. Age ( ) 20 -30 years old ( ) 31 - 41 years old ( ) 41-50 years old ( ) 51- 60 years old ( ) over 61 years old 4. Education level ( ) Lower than Bachelor degree ( ) Bachelor degree ( ) Higher than bachelor degree 5. Income per year ( ) Less than 30,000 ( ) 30,001 - 40,000 (US$Dollar) ( ) 40,001 - 50,000 ( ) 50,001 - 60,000 ( ) 60,001 - 70,000 ( ) More than 70,001
154
6. Occupation ( ) Self Employed ( ) Unemployed/Retired ( ) Company employee ( ) Business Owner ( ) Freelance ( ) Professional (lawyer, doctor, teacher etc.) ( ) Others, please state........... 7. Which country are you from?..........................
############################################################
Thank you very much for completing this questionnaire. Your assistance is greatly appreciated.
155
Appendix E: Questionnaires for Real Estate Developers (English and Thai)
Questionnaire
Topic : What are the main influences effecting the decision to purchase / rent a property in
Phuket I am doing research for my Master degree thesis in JBusiness AdministrationK.
My thesis topic is JReal estateHs marketing strategies for long stay tourists and expatriates in Phuket.K
I would very much appreciate your co-operation in completing this short questionnaire. The answers that you give will be used for academic purposes only and will be kept confidential. The entire process should take less than 15 minutes. Thank-you. ___________________________________________________________________________ Part 1
Please mark X next to the answers that are most applicable to you. Multiple responses are allowed. 1. In which area of Phuket is your project located? ( ) 1. Phuket town and Kratue ( ) 2. Patong and Kalim ( ) 3. Kata and Karon ( ) 4. Kamala, Chengtalay and Surin ( ) 5. Rawai, Niharn and Chalong ( ) 6. Talang, Pakok and Ao-por ( ) 7. Naiyang and Mai kao ( ) 8. Panwa and Ao Makam ( ) 9. Others, please state_______________ 2. In what type of real estate do you sell? ( ) 1. Single house ( ) 2. Twin house
156
( ) 3. Town house ( ) 4. Apartment or condominium ( ) 5. Time share ( ) 6. Villa ( ) 7. Others, please state_________________ 3. What is your property price per unit? ( ) 1. Below 1 millions ( ) 2. 1.1 - 5 millions ( ) 3. 5.1-10 millions ( ) 4. 10.1- 15 millions ( ) 5. 15.1- 20 millions ( ) 6. 20.1- 30 millions ( ) 7. 30.1- 40 millions ( ) 8. More than 40.1 millions 4. What is your architecture style? ( ) 1. Thai style ( ) 2. Modern ( ) 3. Bali ( ) 4. European ( ) 5. Country ( ) 6. Contemporary ( ) 7. Others, please state__________________ 5. How do you advertise your accommodation? ( ) 1. Magazine ( ) 2. Television ( ) 3. Internet ( ) 4. Newspaper ( ) 5. Brochure and Poster ( ) 6. Marketing staff or sale executive ( ) 7. Friends and family ( ) 8. Others, please state___________
Part 2 Factors that most influence the customers decision making process when choosing a
real estate project. Please rate from very important to least important in the table below.
Degree of importance No.
Factors Very
important
Important
Medium
Less importan
t
Least important
Product
2.1 Creditability of the developer
157
2.2 Interior design 2.3 Overall size of the
accommodation
2.4 Space in each room 2.5 Telephone line connected to
high speed internet
2.6 Enough parking 2.7 House included swimming pool 2.8 Own garden area 2.9 Layout of the house Price
2.10 Value for money 2.11 Availability of finance 2.12 Favorable payment term 2.13 Electric and water rate Place
2.14 Its location by the sea or nearby 2.15 Its location in the golf course or
nearby
2.16 Near by working place 2.17 Near by community and
shopping mall
2.18 The convenience of transportation
Promotion
2.19 Sale promotion ex: discount, gift voucher etc.
2.20 Advertising sign 2.21 Knowledge and presentation
158
from sale representative 2.22 Advertising on newspaper 2.23 Website promotion Person
2.24 Efficient/courteous service staffs
2.25 Convenience in contacting staffs 2.26 Foreign language speaking
staffs
Physical
2.27 Atmosphere around the property and surrounding
2.28 General appearance of the property
Process
2.29 Cleaning service provided 2.30 Security service provided 2.31 Availability of
service/maintenance
2.32 Spaces common area 2.33 Additional service e.g.
swimming pool, fitness center, spa etc.
2.34 What are the most important factors effecting customerHs decision in buying or renting your property? Please rank in order of importance from 1 = most important to 7 = least important. ( ) 1. Product ( ) 2. Price ( ) 3. Place (location) ( ) 4. Promotion ( ) 5. Person ( ) 6. Physical ( ) 7. Process Part 3 Comments/Suggestions (please, identify).
159
3.1 What changes would you most like to see in the real estate industry, or identify areas that require improvement? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 3.2 Could you make any suggestions or recommendations to the Thai government regarding this issue, on how they can help or improve the current situation? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ 3.3 What is your opinion about the real estate market to expatriates and long stay market in Phuket? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ############################################################
Thank you very much for completing this questionnaire. Your assistance is greatly appreciated.
160
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