The face of the eastern seaboard is changing as IBM, Mitsubishi, Esso and other manufacturers move into the neighbouring provinces. Jeffrey Studebaker reports.

PATTAYA is better known as a beach resort destination, but the eastern seaboard is rapidly becoming the Detroit of Asia and major hotels are seeing a steadily growing demand from the corporate segment.

Since the mid-1960s, positive incentives from the Thai government have been encouraging overseas heavy industries to base production facilities on the eastern seaboard and this year, a government statement labelled the automotive sector a core industry of Thailand.

The passage of an investment promotion law in the 1960s, which offered a 50 per cent deduction on import duty, a corporate income tax exemption and greater freedom to bring in overseas technicians, marked the beginning of the boom.

Industry on the eastern seaboard was given another big boost in 1990 by the creation of the country’s largest deep-sea port at Laem Chabang in Chonburi with two basins – at 14m and 16m – which receive more than 5,000 vessels per year.

Port Authority spokesman, Mr Pitakpong Chaluaysri, said the first phase of the project was the opening of the first basin, which can take cargo vessels of up to 50,000 tonnes. “We are now moving into the second phase, seeking private companies to lease the second basin, which can accommodate ships of 80,000 tonnes,” he said.

The eastern provinces of Rayong and Chonburi are now home to 17 major industrial and export processing zones with over 6,500 hectares of industrial land. Petroleum companies, chemical manufacturers and automotive companies have made the east coast their home and are providing an ever-increasing flow of corporate travellers for hotels in Pattaya and Rayong.

Ford, Fiat, Toyota and Nissan were among the first companies to set up shop and they have since been followed both by their competitors and supporters including manufacturers of auto parts and large petroleum processing companies.

Most recently, Nissan targeted Thailand as its new Asian production centre and has invested US$190 million to increase its share from 25 to 75 per cent in both its production and distribution facilities here, and the number of Japanese executives on site has risen from four to 20.

The government’s policies have also encouraged chemical and petroleum companies to move in and the US$600 million Esso Thailand petroleum refinery near Laem Chabang produces 82,000 barrels of oil yearly and has 30 overseas management staff.

Indorama Petrochem from the UK opened a US$400 million processing plant in Rayong this year, with an overseas management staff of more than 40. Another petroleum processing company, Panama’s Star Petroleum, also owns a Rayong facility employing more than 150 foreign staff.

Singapore’s Asia Pacific Chemicals owns a US$10 million plant in Rayong and Worldbest Biochemicals, a Chinese company, recently opened a US$74 million chemical plant with more than 60 of its management positions filled by overseas staff.

All of these companies need accommodation for residents and visiting executives and hotels in Pattaya and Rayong receive the bulk of their business.

Amari Hotels and Resorts vice-president sales and marketing, Mr Duncan Webb, said east coast corporate travel had been increasing steadily for the past 10 years. “There is no doubt the corporate segment has, is and will continue to be important for our Pattaya property,” he said.

According to Mr Webb, corporate travel business follows cycles determined by everything from international economics to the release of a new car model. But on the average, the market is on the rise.

“We have moved the property from being exclusively leisure-based to one that also caters to corporate clients, with high-speed Internet connections and an extensive business centre,” he said.

Accor key account director business Thailand, Ms Siriwan Siritho, said the Novotel Coralia Rimpae in Rayong had also seen an increase in corporate visitors. “Our Rayong property has more incoming requests than any of our other properties in Thailand and this trend is being driven by the corporate market,” she said.

Central Hotels and Resorts vice-president sales and marketing, Mr Chris Bailey, added his company had stationed a dedicated sales team oriented towards the corporate market at its Central Wong Amat Resort in Pattaya.

“The corporate market is particularly strong in Pattaya and we are now doing two feasibility studies; one on a city centre property attached to our shopping centre and one on replacing the Wong Amat with a premium property,” he said.

Just as a hotel in Phuket must have a spa, it is becoming obvious to all hoteliers that a property on the eastern seaboard must be a place where a corporate traveller can stay connected and do business while enjoying the sunset on Pattaya bay.