"Hua Hin" - A Holiday Destination for Thais and Foreigners

            It is well known that ‘Hua Hin’ is a popular tourist city for Thais, often targeted as a getaway destination for Bangkok residents during long weekends for many decades. However, beyond its popularity among Thais, ‘Hua Hin’ is also a favored destination for relaxation and investment among foreigners.

Tourism Potential and Job Opportunities from a Foreign Perspective

            The tourism figures for ‘Hua Hin’ have been steadily growing each year. Statistics from the tourism department of Prachuap Khiri Khan province for the years 2017-2018 show a continuous growth rate of 1.41% in the number of both Thai and foreign tourists, with an average stay of 3 days, typically during long weekends or public holidays. In 2018, approximately 8 million tourists visited Prachuap Khiri Khan, comprising 5.94 million Thais who spent an average of 2,395 THB per person per day, and 1.23 million foreigners who spent an average of 3,620 THB per person per day. Additionally, the hotel occupancy rate reached 65.43%, resulting in an income of 42.987 billion THB from visitors in 2017.

            Besides tourism figures, the number of foreigners working in Prachuap Khiri Khan is also noteworthy. According to the Department of Employment, as of September 2019, there were 818 foreign workers in the province, including 746 under Section 59 (general category) typically holding positions such as department managers, educators, and executives, and 72 under Section 62 (investment promotion category) in roles such as managers and technicians. This indicates that Prachuap Khiri Khan is also a significant destination for foreign employment.

Breaking Down Hua Hin's Tourism Revenue of 7.8 Billion THB

            Delving deeper into Hua Hin, statistics from the Ministry of Tourism and Sports for 2018 show that in the first quarter (January-March), Hua Hin welcomed 2,515,380 tourists, a 3.87% increase from the previous year, with an average stay of 2-3 days. Thai tourists spent an average of 2,565 THB per person per day, while foreigners spent an average of 3,984 THB per person per day.

    

            In addition to the number of tourists indicating diverse demand in Hua Hin, it is noted that there are 11,896 hotel rooms in Hua Hin with an average occupancy rate of 68.74% throughout the year. Thai visitors typically spend around 700-800 THB per person per night, while foreigners spend approximately 1,000-1,200 THB per person per night. In 2018, Hua Hin generated tourism revenue of 7.8 billion THB.

            The top ten foreign countries visiting Hua Hin include China, Germany, Norway, the Netherlands, Finland, Denmark, Japan, the UK, Sweden, and Russia, viewing Hua Hin as an excellent place for both short and long-term stays, especially for retirees.

Prachuap Khiri Khan's GPP Grows at an Average of 5.15% and GPP Per Capita Grows at an Average of 5.12%

            Over the past ten years, Prachuap Khiri Khan has seen an average GPP growth of over 5.15% per year. According to the latest data from the National Economic and Social Development Office, the GPP for 2017 was 92.112 billion THB, surpassing the average for the western region (average GPP per capita for the western region = 89.852 billion THB), reflecting the value of final goods and services produced in the area, as well as income from various production factors such as compensation, labor, land rent, interest, and profits in Prachuap Khiri Khan.

            In terms of GPP per capita, the average income of Prachuap Khiri Khan residents in 2017 was 198,433 THB, which is 32.4% higher than the average for the western region (average GPP per capita for the western region = 149,827 THB), with an average growth of 5.21% over the past ten years.

Land Prices in Hua Hin Reach Hundreds of Thousands THB per Square Wah

            “Hua Hin” has become a beloved tourist city for both Thais and foreigners, and the city's development has significantly influenced land price assessments. Did you know? The assessed land prices along Hua Hin's coastline have reached hundreds of thousands THB per square wah since the assessment period of 2012-2015. For instance, Naresdamri Road, Dechanuchit Road, Damen Kasem Road, and Naeb Kehakhan Road have average assessed prices of 60-120k THB per square wah, comparable to main roads in several areas of Bangkok, such as Srinakarin Road at 94-110k THB per square wah, Pattanakarn Road at 95-140k THB per square wah, and On Nut Road at 45-120k THB per square wah.

            Similarly, along Highway No. 4 (Phetkasem Road), the main route to the south, land prices have consistently increased along the entire stretch, and “Hua Hin” is also the district with the highest assessed land prices at 7-140k THB per square wah (assessment period 2012-2015) compared to other districts in Prachuap Khiri Khan.

Hua Hin Condominiums as a “Second Home” and “Holiday Retreat”

            The search for a “second home” or “holiday retreat” at an affordable price for Hua Hin condominiums not only meets the needs of Thais but also attracts interest from foreigners. Many view Hua Hin as a potential “retirement living location” for various reasons, including low living costs, complete basic amenities, safety, and 24-hour medical services.

            Currently, the average selling price of second-hand condominiums in Hua Hin ranges from 82,000 to 95,000 THB per square meter, generating a Capital Gain averaging 6.02%, reflecting the continuous growth of condominium prices from presale to current second-hand prices.

            These condominiums, when looking back seven years ago during their new project phase, have seen a consistent increase in presale prices, with an Average Presale Growth of about 4.72%, indicating ongoing price growth for new condominium projects in Hua Hin.

            Additionally, there are condominiums managed in conjunction with hotels, which can be beneficial for investor tenants, as professional management assists in rental operations with guaranteed annual returns, making condominium investment easier. For example, Carapace Hua Hin by One Place Estate guarantees a 5% return for five years with free common area fees for five years.

            Overall, Hua Hin condominiums can yield an average Rental Yield of 4.5-6.5% per year, calculated based on an occupancy rate of eight months per year, considering seasonal impacts such as the rainy season (July-October) that may affect occupancy. Currently, Hua Hin condominiums are listed for rent at an average of 450-670 THB per square meter per month, depending on the type of unit. For instance, a studio unit of 25-30 square meters averages 13,000-18,000 THB per month, a one-bedroom unit of 30-45 square meters averages 15,000-30,000 THB per month, and a two-bedroom unit of 55-65 square meters averages 32,000-45,000 THB per month.

            All of this highlights the potential of “Hua Hin” from various perspectives, including the foundational data of Prachuap Khiri Khan reflected in GPP figures and land price assessments, as well as the growth of tourism and private investment projects. It is no surprise that Hua Hin condominiums are becoming a preferred choice for both Thais and foreigners seeking a “second home” and “holiday retreat”.