PHUKET: ''The total number of Phuket visitors should increase by 15 percent this year despite the prolonged financial and economic crisis in Western Europe,'' said Piya Sosothikul, Executive Director of Seacon Group, owner of the Renaissance Phuket Resort and Spa.
''The Island is fortunate to have continued high annual growth rates for Russian and Chinese tourists, with arrivals for each market expected to surpass 300,000 in 2012, second only to Australians at 500,000.
''The average Phuket hotel occupancy rate should reach 70 percent, while room rates will increase by five percent depending on the segments.''
Operators that benefitted from the growth of the Chinese market are large three and four-star hotels, located either in Phuket City or further inland from the beach due to their competitive pricing and also because Chinese tourists normally are more interested in sightseeing than sunbathing.
As for Russians, the preferred accommodations range from small two-star apartments to five-star international chained-managed hotels that are closer to the beach. Their averaged stay last longer than a week.
''We are pleased with our hotel's performance both operationally and financially. It has received multiple awards, which include for two consecutive years, the best five-star hotel in Thailand selected by TUI Nordic, one of the world's largest travel agents.
''We expect our occupancy rate to reach 75 percent while average room rates should outperform our target due to higher individual direct bookings and strong demand for the villa product.''
However, not every hotel will enjoy the same success because of massive growth in rooms supply.
In the last quarter alone, there will be additional 1500 keys from new hotels launched such as the Holiday Inn Express in Patong, Pullman Phuket in Nai Thon and Regent Phuket in Cape Panwa.
Price competition remains high, making it difficult to increase the room rate.
''Our strategy is to stand firm on the rates, but try to offer the best service to customers. We also try to expand our revenue categories, especially during the low season, by targeting weddings, regional corporate seminars, and honeymooners.
''For example, by year-end, we will have hosted 33 weddings compared to six last year or an average of one wedding every 10 days. The majority of the couples are from Australia,'' Mr Piya elaborated.
The main immediate challenge for Phuket is solving the congested airport, which has to accommodate more than 20 additional chartered flights per day during the high season.
As for the medium term, Phuket MICE market will strongly benefit from a national convention center that has been delayed for many years.
There is also an urgent need for road expansion and public mass transit system which can, actually, start with a simple public bus service both within Phuket and connection to Phang Nga and Krabi.
''The airport will be handling more than nine million passengers this year, much higher than its capacity of 6.5 million passengers. Currently there are planes arriving after midnight due to limited landing time slots as during peak hours, there is plane taking off or landing every five minutes on the single runway.
''However, since Phuket generates more than 10 percent of the total national inbound tourist income, I believe that the government will support the needed investment,'' Mr Piya said.
''The Island is fortunate to have continued high annual growth rates for Russian and Chinese tourists, with arrivals for each market expected to surpass 300,000 in 2012, second only to Australians at 500,000.
''The average Phuket hotel occupancy rate should reach 70 percent, while room rates will increase by five percent depending on the segments.''
Operators that benefitted from the growth of the Chinese market are large three and four-star hotels, located either in Phuket City or further inland from the beach due to their competitive pricing and also because Chinese tourists normally are more interested in sightseeing than sunbathing.
As for Russians, the preferred accommodations range from small two-star apartments to five-star international chained-managed hotels that are closer to the beach. Their averaged stay last longer than a week.
''We are pleased with our hotel's performance both operationally and financially. It has received multiple awards, which include for two consecutive years, the best five-star hotel in Thailand selected by TUI Nordic, one of the world's largest travel agents.
''We expect our occupancy rate to reach 75 percent while average room rates should outperform our target due to higher individual direct bookings and strong demand for the villa product.''
However, not every hotel will enjoy the same success because of massive growth in rooms supply.
In the last quarter alone, there will be additional 1500 keys from new hotels launched such as the Holiday Inn Express in Patong, Pullman Phuket in Nai Thon and Regent Phuket in Cape Panwa.
Price competition remains high, making it difficult to increase the room rate.
''Our strategy is to stand firm on the rates, but try to offer the best service to customers. We also try to expand our revenue categories, especially during the low season, by targeting weddings, regional corporate seminars, and honeymooners.
''For example, by year-end, we will have hosted 33 weddings compared to six last year or an average of one wedding every 10 days. The majority of the couples are from Australia,'' Mr Piya elaborated.
The main immediate challenge for Phuket is solving the congested airport, which has to accommodate more than 20 additional chartered flights per day during the high season.
As for the medium term, Phuket MICE market will strongly benefit from a national convention center that has been delayed for many years.
There is also an urgent need for road expansion and public mass transit system which can, actually, start with a simple public bus service both within Phuket and connection to Phang Nga and Krabi.
''The airport will be handling more than nine million passengers this year, much higher than its capacity of 6.5 million passengers. Currently there are planes arriving after midnight due to limited landing time slots as during peak hours, there is plane taking off or landing every five minutes on the single runway.
''However, since Phuket generates more than 10 percent of the total national inbound tourist income, I believe that the government will support the needed investment,'' Mr Piya said.
