Samui Hoteliers Fear Competition.

Since early 2005, Samui hotels enjoyed a boom in booking, but it was at the expense of Andaman beach destinations that were hit by the december 2004 Tsunami. Muang Samui Spa Reort assistant managing director Chedtha Premananda said: "It seems like the season is now year-round on Samui island".

While Samui enjoys strong bookings throughout the year, hoteliers are concerned they will lose out to Phuket as business picks up for Andaman coast resorts.

"For our property, the occupancy year round is around 90%, while we find it difficult to meet demand for rooms, especially the high-end category from Asia Pacific markets," said Mr.Chedtha.

However, he voiced concern that the rates 10 to 20% higher than what hotels quote in Phuket could be problem in the future.

Sala Resort and Spa group director of sales, Omapatt Nuntapanish, noted that Phuket hoteliers are working hard to recover market share after teo years of losses, while it seems that overseas tour operators are getting more interested in competitive deals in Phuket now that the threat of a Tsunami has receded.

A hotelier who asked not to be identified, said he hoped the island would rise to the challenge and continue its endeavours to attract the up-scale market, he said international chains are providing management for more hotels on the island than ever before and local investors are going up-market when building new properties.