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The new terminal takes on its wave shape at Phuket International Aiport

Phuket Passengers Top 5.5 Million So Far

Saturday, July 4, 2015
PHUKET: The number of passengers passing through Phuket International Airport continues to rise with the total for the first half of the year topping 5.5 million, an improvement of 8.36 percent over last year.

The figures for arrivals and departures in June on the holiday island show the number of overseas visitors increased by 21.09 percent while the number of domestic travellers soared even higher, jumping by 29.95 percent.

But what should be borne in mind is that the year-on-year comparison is with June 2014, the month immediately following the military takeover in Thailand.

In June 2014, the number of passengers passing through Phuket International Airport fell by 12.56 percent - the first minus figure for the Thai holiday island in five years.

Phuket was simply not immune to the bad international publicity associated with the coup, even though the Army and Navy quickly moved onto the island's beaches, clearing umbrellas and sunbeds and general commerce - but leaving the jet-skis.

Residents and tourists are still waiting and hoping one year on that the military will force the extortionate taxi and tuk-tuk fares to be lowered and wipe out the corruption that infects all aspects of tourism and inevitably makes Phuket less competitive by adding about 20 percent to prices.

It's the tourists who pay for almost all of the corruption of Phuket.

Large numbers of people are not being put off, though. There were 468,780 international arrivals and departures in June while 393,982 passengers used domestic services.

If the first six months are a realistic guide, Phuket should expect a full-year tally of more than 11 million departures and arrivals.

False figures about the number of tourists visiting Phuket continue to lead investors to imagine there's money to be made in condominium development on the holiday island.

The Airports of Thailand figures continue to be the most accurate general guide to tourist numbers - and as the figures tally both arrivals and departures, the ballpark tally for tourist visitors to Phuket is half that number.

All business travellers and residents flying to visit relatives or vice versa are included in those numbers.

The present condo oversupply will take years to erode and buyers should be wary of any sales proposition that suggests rapid appreciation and a quick profit.

A half-yearly tally for the airport's comings and goings also focuses attention on the new airport international terminal, still under construction and due for its grand opening in February next year.

At that point, the capacity of single-runway Phuket International Airport is reckoned to be about 12.5 million passengers a year.

Judging from the rapid spread of concrete across Phuket, Phang Nga and Krabi, authorities would be wise to ensure the future of Andaman tourism by slowing urban development and solving the region's chronic corruption and environmental issues rather than overselling the region to its destruction.

Comments

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Actually this figure says what it is - the numbers of passengers through HKT.

People arrive/depart from HKT not only to Phuket , but
- to Phang Nga West a.k.a. Khao Lak, and as North as Koh Khor Khao is. and Koh Panyee,
- to Koh Yao Yai/Noi, Racha Yai, Maiton is., Coral is. , Naka is., few more small islands, some of them commissioned recently
- to Phi Phi is.(Krabi province)
- to Koh Lanta , Jum is.
- to islands in Trang and Satun province as transit goes either directly from Phuket (Tiger lines) or via Koh Lanta (via Koh Lipe) - Koh Lipe, Koh Ngai, Koh Mook, Koh Kradan, Tarutao NP - if they chose not to fly to Trang/Hat Yai or at least to Krabi

There is not enough data what actually cause this dynamics, something like market research in form of question nary would be helpful - and it is in the interests of all stakeholders to know where these people are going or why they are coming, and who they are.

Posted by Sue on July 4, 2015 11:02

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Numbers travelling through the airport may be up but the average stay is probably well-down. The Chinese don't spend as long here as the Western tourist, therefore two or even three Chinese arrivals equates to one Western arrival if your translate this into nights spent in Phuket.

Hotel nights would be a much better indicator of tourism statistics but this is impossible to collate as small hotels and guesthouses are not required to produce statistics, so occupancy rate figures are calculated only using the Thai Hotel Association stats, they're the bigger hotels which now cater extensively to the Chinese market.

Those of us living here have eyes. We can see tourist numbers are down but it suits the authorities to give a positive figure, therefore airport arrivals/departures suits this need perfectly.

Posted by Steve on July 4, 2015 11:24

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Steve,

"Hotel nights would be a much better indicator of tourism statistics"
I do wonder, isn't monthly average occupancy is that statistics indicator..?

And it was in Jan-Mar 2015 86-87%, in Apr 79% as per Department of Tourism, not that bad I think.
Chinese indeed spend on average twice as less time than average European, and 2.5X less tourist from some specific European countries, but they spend per day more: their average visit yields only 1.5less revenue than an average visit by Europeans (again, statistics by Department of Tourism).
Obviously, one day by a Chinese tourist for Thailand economy is more attractive than one day by most of other tourists, and, if we take narrowly only economic aspects, then proper strategy would be maximizing number of more yielding days, i.e.those spent by Chinese on Thailand soil and waters, and there are untapped reserves available.

Posted by Sue on July 4, 2015 13:03

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A lot of regulars won't come again, before the problem with lack of sunbeds is solved.

Posted by Sherlock on July 4, 2015 13:05

Editor Comment:

The world will keep turning. The sunbeds appear to have gone for good. It is really odd though how mats are ok while sunbeds are not.

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As much as dislike the chinese invasion i must disagree with some of your comments.

The chinese are spending a lot more than the western tourism. They have occupied most of the hotels from 1 to 5 stars. They buy clothes, gems, latex, HUGE load of Food, Thai OTOPS, Snacks, they steal and plunder the sea resources in between!

Have you seen them when the tour bus stops at a 7-11 or Family Mart? How about Tesco Lotus, BigC or Tops Market.

I wonder if these chinese have food in their country? They seem to be VERY hungry and miserable people, like they are coming from desert.

No offense though but seriously i am wondering what kind of tourist is this? I have never been to china but they definitely give a bad image to that country.

Posted by Mr Naka on July 4, 2015 15:15

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I do not have a single friend (Thai or Expat) in Phuket with a business of any kind (Diving, Hotel, Bar or whatever) who has had a good high season & is now dying a business death in low season.

The figures simply don't seem to add up.

Posted by Logic on July 4, 2015 16:53

Editor Comment:

Competition for the tourists is outstripping the growth in the number, Logic. More are going to Phang Nga and Krabi. There are no figures on the number of shops and dive companies etc but i would reckon the issue is a combination of the swing to non-European markets, more business competition everywhere, and disparate destinations.

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[quote]
I do not have a single friend (Thai or Expat) in Phuket with a business of any kind (Diving, Hotel, Bar or whatever) who has had a good high season & is now dying a business death in low season.
[/quote]

Perhaps we should meet up :)

Since 2005, I have built 4 small hotels in Phuket. I sold one for a good profit a few years ago, and gave one to each of my ex-wives/family. (Keeps them 'indebted' to me...).

The 4th hotel is for me :)

I opened that 4th hotel last year and had a 100%++ occupancy rate for high season, (100%++ means that I was completely full every night and sent walk-in, non-booked guests to other hotels for a commission payment).

Now in low season, and with a good reputation on the 'web', I am running at about 95% occupancy rate and building extra guest rooms prior to the next high season.

The secret to my success? Not rocket science. Providing what the customer wants, at the right price, and with good and personal service.

I feel for many small businesses who are 'going to the wall'. But in all honesty, most of those businesses had almost zero chance of success, due to lack of initial market research, competitor analysis etc etc.

Good businesses are doing fine in Phuket.

Posted by Simon Luttrell on July 4, 2015 18:59

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@ Simon - if everybody was as clever as you are, would all hotel rooms on Phuket be full the entire year?

Posted by Sherlock on July 4, 2015 20:09

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Simon L,
Just how many current and ex's do you have. None of mine got a hotel, they were just good house keepers and car keepers and everything else keepers. Well almost everything.

Posted by MoW on July 4, 2015 20:52

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Simon Luttrell How can I get to see your hotel website please, I come often and would love to try a hotel that is different and into old fashioned service.
I am on Facebook exactly as my name below

Posted by Gregg P Cornell on July 4, 2015 21:17

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[quote]
Simon - if everybody was as clever as you are, would all hotel rooms on Phuket be full the entire year?
[/quote]

No, for the reasons stated in the last para of my post. In many areas of Phuket, there is an oversupply of hotel rooms.

Many of these hotels are 'same-same' ==> clean but totally bland guest rooms that are exactly the same as the hotel next door.

Who wants to spend their holiday in a hotel room of a style that exists in any tourist resort throughout the world? You need to think 'out of the box'.

My current little hotel was built in 'plantation' style, with plenty of louvre wood doors and shutters, 4-poster bed, etc etc. It sits in the middle of a rubber tree plantation and the locals cannot figure out how I have customers, let alone be full every night...

The new guest accommodation that I'm building is - wait for it - genuine Sioux Indian teepees, imported from the USA and decorated with characters scenes from the Thai classic Ramakien, huge and airy, with built-in bathroom and aircon. Defnitely not 'same-same', but still priced at the budget end of the market (1,000 baht low season, 2,200 baht high season).

To survive in any business, you need to be innovative and be prepared to take risks.

The same-same businesses in Phuket are the same-same in any and every country. They do not stand out and will either go to the wall or endlessly struggle to stay afloat.

@MoW - I have too many ex's, all who are forever in my debt for providing them with a viable business, and it is their choice to either work hard and make money, or laze around and lose it all :)

Posted by Simon Luttrell on July 4, 2015 21:55

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I live in Rawai... near my house is a small moo baan... it has med sized buses parked in their each day.... the chances are stacking maybe 20 people in a 2 bedroom house.... this is what Phuket is getting...

Posted by DG on July 4, 2015 22:40

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Well run places with good service at a fair price will always do ok due to word of mouth and repeat customers. Many places don't deserve to succeed as they want top dollar but fail to provide good service or a good experience for the customer. Many of the places or businesses not doing well are probably bars, restaurants, tattoo and massage shops etc as there are just too many of them and the spenders have dried up and been replaced by zero baht package tourists.

Posted by Arun Muruga on July 4, 2015 23:13

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Gregg P Cornell

You pt sly misjudged how successful business works:
it works as satisfying well needs of particular segment of customers, but not the news of any customer, Simon's Airport hotel may serve to the cusyomers' segment that in a simplified manner can be described as following:
people in transit from airport, who needs a one-night stay, or occasionally few nights stay, in a decent room at competitive price that is cheaper than ave.return taxi rate+room rate of an alternative.

Since you most probably don't fall into target group, then the offering will not match your needs well, and will not be able to bring the level of satisfaction as for the target group.

The hotel is few minutes walk from the terminal, so actually can be reached by feet.

Simon surely benefits well from an increased traffic through HKT ;) as a number of potential customers - those who missed the flight, or for any other reason in transit, is proportional or correlates to the traffic through HKT.

Posted by Sue on July 5, 2015 00:44

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SUE. We have different opinions and you seem to go along with @ MoW perhaps because you are stuck with your property investments in Thai.

Of course it is difficult to sort out statistic in Thailand and you both look for statistic figures with a kind of upper class schooling. I take it as a big laugh and frankly I think you do not see reality behind your pink academic glasses.

I give you an article here that already been linked here on PW. It is fully support my theories and not yours about spending per capita and lengths of stay.

Cmon prove me wrong about mass tourism and that the marketing by Thais are leaving Europeans with MONEY for upcoming Asians

The link is http://www.bangkokpost.com/property/news/612336/southern-property-market-comfort-from-tourism%22

Obviously you are going to your sources but this is it.

Posted by A Joe on July 5, 2015 00:46

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A Joe,

Sorry, may be you misunderstood something :)

I don't have investments in Thai real estate market as I'm not stupid :)

Secondary market of Thai realty, although there is no trusted and thorough statistics, is priced , in my opinion, in general BELOW the primary market - it says it all.

Occasionally, you bring into discussion some associations of alleged messages of mine that I never said or meant...

Logical and thorough thinking, collecting of information, proper analysis of it, is not reserved to upper class, but is universal.

Any person of average intellect is endowed with potential of proper logical and creative thinking, and this can be taught and developed.
DeBono has developed courses and technics how to study it, and he successfully and in full applied it also to e.g. illiterate Cambodian farmers.
At the same time there not few people who successfully filled their heads with a tons of information and data in universities, but unable to think properly.

Upper class definition is super-rich, to understand what is upper class we need to look into what is middle class: these are people who can afford virtually any day to day and amusements but still are not super-rich - it is in contrast with some house hold definition of middle class as people of median or average income; there could be situations that there is virtually no middle class in a country, only low-income people (low-income is not synonymous to poor) and upper class - "banana republic".

Hence you don't need to be of upper class or of academic background to exhibit a pattern of proper thinking.

In US low-income brackets are up to 70kUSD-100kUSD per annum, middle class income according to various there's starts at that figure ends at 200kUSD-400kUSD where one's daily needs in fine dining, designers' clothes and so on are fully met, above are ultra-rich - upper class whose income generated more capital.

MoW to my understanding may be not a middle class himself - but I don't know - but family where he comes from, and the future that he envisage to his kids, are of middle class. Having apparently strong technical background obviously require skills of proper thinking , at least in part of logical thinking, but he demonstrated if not all, but many features of proper thinking.

Actually, after WWII many overseas immigrants - lawyers , changed their occupation to engineers, as it requires a similar degree of proper thinking, but there was no demand for imported lawyers.

It is not too late to acquire skills of proper thinking regardless of background or age.

Posted by Sue on July 6, 2015 03:36

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@ Sue

Of course monthly average occupancy is a good indicator but as I clearly stated in my post, these statistics are taken only from hotels registered with the THA, which are predominantly larger hotels, many of which cater for the Chinese tour groups, so it's no surprise that the figure is up.

Smaller hotels and guesthouses are the ones struggling (with the exception of Simon, of course, though the location also has something to do with that) and their occupancy stats are not included.

We can all make statistics read what we want them to and the various Thai tourism associations seem to be very adept at this.

Posted by Steve on July 7, 2015 12:41


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