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Kenting resorts going upscale

By Jackie Lin
STAFF REPORTER
Monday, Aug 21, 2006, Page 11

Coral reproduce by by ejecting large quantities of eggs and sperm into the surrounding water at night. PHOTO: KUO FANG-CHI, TAIPEI TIMES

A new era of hotel competition started on the southern tip of Taiwan this summer, as three large companies began pumping funds into new projects in order to gain bigger share of the recreation business in Kenting (墾丁).

The projects started when 20-year-old Caesar Park Hotel Kenting (墾丁凱撒) concluded the first round of its large-scale renovation in late May. The newly remodeled facilities target a more sophisticated clientele.

Leofoo Development Co (六福開發), which runs The Westin Taipei and the Leofoo Village (六福村) amusement park, decided to extend its operations to the south and launched a "soft" opening for its new Leofoo Resort in late June.

Chateau Beach Resort Kenting (墾丁夏都), which runs two hotels along Dawan Beach (大灣), is preparing to open its third hotel in the second half of the year, and has plans for a fourth.

The motivating factor behind the large investment projects is the perception that there is an unsatisfied demand for recreational facilities in Kenting.

Kenting Coast Hotel is one of the more stylish independent hotels in Kenting. PHOTO: JULES QUARTLY, TAIPEI TIMES

"Kenting's tourism has been booming so much that even with our offering of nearly 100 rooms in the new project, we still only occupy a tiny bit of the market," said Tu Cheng-chung (涂振中), vice general manager of Chateau.

Kenting's popularity continues to grow -- 3.2 million tourists visited Kenting National Park in 1999, and the number surged 56.25 percent to 5 million last year, according to government statistics.

A guest looks at the Small Path hotel in Kenting. PHOTO COURTESY OF SMALL PATH

Most local operators believe the figure will keep growing.

"The only problem here is that no rooms are available in peak seasons. As long as there's a place to sleep, more people would come," Tu said while waving his hands about to indicate Kenting's hustle and bustle.

Boasting a 2km-long exclusive beach as its main attraction, Chateau has spent NT$480 million (US$14.6 million) to build the Positano, its new Caribbean-themed hotel. The Positano stands next to the company's Mediterranean-themed Provence and the Spanish-themed Marbella hotels. The Positano will boost the number of Chateau's hotel rooms to 293, Tu said.

"Over 90 percent of our rooms face the sea. Where else can someone sit on the bed, watching the sunset?"

-- Charles Hsu, Leofoo Resort

After completing its NT$500 million remodeling, Caesar Park boasts 280 rooms. The market veteran made the investment in order to maintain market share and generate more profits.

"Setting aside the new rivalry from Leofoo Resort and Chateau, Kenting's guest houses and independent hotels have already offered 4,000 rooms in total. As the popular market has been nibbled up, it's essential to set a new direction, instead of becoming mired in price wars that hurt the company's bottom line," said Gary Pee (皮金營), general manager of Caesar Park.

After the remodeling, the hotel's average room rate was increased by NT$1,200, or 31.58 percent, to more than NT$5,000 a night, he said.

Revenues are expected to jump as well. Last year, Caesar Park's 250 rooms generated NT$360 million in sales. The 280 new rooms are estimated to bring in an additional NT$500 million, or a staggering growth rate of 40 percent, Pee said.

Caesar Park expects to complete its second phase of renovation in February next year. At that time, Pee said, four to 20 -- depending on how much land can be purchased -- premium stand-alone villas, each measuring 100 pings (330m2), will be offered to affluent guests.

The concept of offering higher-priced, upper-tier services and facilities is also shared by Leofoo Resort, which has increased room rates at its 11-story hotel from NT$5,800 to as much as NT$16,800 per night. To justify the increase, the hotel offers jacuzzis, hot springs, steam rooms, outdoor swimming pools filled with sea water or fresh water, a gym and a children's playroom.

"With per capita income greatly increasing in recent years, people's attitudes have changed and they want to stay at comfortable hotels which provide a wide array of entertainment choices," said Charles Hsu (徐清晃), general manager of Leofoo Resort.

"The goal is making our guests to want to come back again and again, like in Thailand. Tourists make repeated visits as long as you've got good facilities," he said.

Nevertheless, Leofoo Resort knows its strengths and weaknesses.

Nestled by Haikou Harbor (海口港) in Checheng (車城), Pingtung County, the resort is a 30-minute drive from Kenting's main street, where hundreds of stores and stands attract visitors. As a result, Leofoo has come to realize that it must enhance its indoor entertainment options.

"Over 90 percent of our rooms face the sea. Where else can someone sit on the bed, watching the sunset? We want customers to know that the Kenting main street is not the only place to visit. We offer new choices for tourists," Hsu said.

Leofoo will arrange for shuttle buses to Kenting and expects local bus services to expand their networks to service guests staying in Checheng, he added.

With the most beautiful beaches and sunny weather in Taiwan, Kenting has a mushrooming number of guest houses and small hotels on every road and small alley, with quality, services and room rates that vary dramatically.

Some hostels are known for their stylish designs, such as the Mediterranean-themed Small Path (小徑), the log cabin design of Sen Hushi (森呼吸) and the Moroccan atmosphere of Papa Garden B&B, to name just a few.

While some have expressed concern about the fast-developing hotel business in Kenting, officials with the Pingtung County Government have said they are not worried about over-development that could destroy the environment.

Chen Chun-che (陳俊綺), the chief of the county government's tourism section, said that Kenting National Park also keeps a close eye on construction licenses that are issued.

Chen, whose section has made ecotourism its priority for the area, cited the example of last month, when a local tour agency's plan to begin helicopter tours over Kenting was annulled by the park's headquarters due to the fear of disturbing migratory birds.

If the tourism business in Kenting suffers from anything, it is a lack of international exposure.

"Kenting has all the qualities to attract foreign tourists. But without the government's help, businesses' efforts alone will be difficult to achieve that goal," Hsu said.
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