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 (
The projects started when 20-year-old Caesar Park Hotel Kenting (
Leofoo Development Co (
PHOTO: KUO FANG-CHI, TAIPEI TIMES
Chateau Beach Resort Kenting (
The motivating factor behind the large investment projects is the perception that there is an unsatisfied demand for recreational facilities in Kenting.
"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 (
PHOTO: JULES QUARTLY, TAIPEI TIMES
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.
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.
PHOTO COURTESY OF SMALL PATH
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.
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 (
"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 (
"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 (
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 (
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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