PHUKET: Phuket in recent years has become known as the playground of the West's rich and famous, attracting pop stars, celebrities, supermodels and run-of-the-mill millionaires.
Some of these visitors spend time checking out property in the area, which spawned a healthy market for villas costing 30 million baht or more.
The financial crisis that began in the United States in 2008 took some of the wind out of Phuket's sails as wealthy Westerners began to watch their budgets, but the island's tourism industry has barely missed a beat. The new wave of visitors may not all be jet-setters but they're happy to spend on tourism or property.
Visitors from China are now ready to contribute to a new boom in Phuket's economy. According to a survey by Ctrip.com, China's leading online booking agency, Hong Kong was the top destination for Chinese travellers, with Phuket second. Considering that Hong Kong is actually part of China, that puts Phuket in top position as an overseas destination for Chinese holidayers.
Russia, meanwhile, is also threatening to overtake Australia as Phuket's second prime source of tourists. One reason for the dramatic increase in numbers is simple. The severe winter weather in Europe, notably Eastern Europe, has shaken up many people and spurred a desire to relocate to safer, better homes. The busiest time is between October and April when the weather in Europe is really cold.
Previously, Russians were visiting places such as Turkey and Egypt in greater numbers, but due to the political unrest in those areas, and with the cost being about the same, many have turned to Phuket.
Another reason for the shift is that it's never been easier for Russian and other international tourists to get to Phuket. Many charter airlines now run direct flights between big and small cities in various parts of the world to Phuket.
The first Russian private airline, Transaero Airlines, has launched scheduled flights from Moscow and St Petersburg in Russia to Phuket airport. Next season, there will be more direct flights to Phuket from approximately 15 cities from Russia.
There are currently about 10 cities in mainland China that have direct flights to Phuket. Besides Beijing and Shanghai, these include Chengdu, Chongqing, Kunming, Nonbo, Taiyuan, Wuhan and Xian.
The island has found great success with the increasing number of direct flights. Phuket is abuzz with talk of all these new tourists. While some ultra-wealthy Chinese and Russians are regular visitors to the island, the new wave of travellers are mainly lower middle class.
And so, even though the number of tourist arrivals to Phuket has risen sharply, the total revenue of many shops along Patong, Kata and Karon beaches remains about the same as these tourists tend to come on package tours and are known for spending hardly any money outside their nearly all-inclusive packages.
The first 10 months of last year proved that Phuket is successfully gaining an increased tourist share. The emerging markets are Middle Eastern, up 63.2 percent from a year earlier, Asian (up 41percent) and Russian (up 14.5percent). Nevertheless, the hotel market did not grow strongly as impacts from the sluggish global economy are still being felt. The market was mainly supported by Asia-based purchasers who are less likely to be influenced by the debt crisis in European countries.
Patong is an area that is attractive for Chinese visitors since the location is convenient and full of facilities such as retail outlets, nightspots and restaurants. One major new attraction is the 1750-seat Siam Niramit Theatre on Ratsada-Samkong Road, off Phuket's Bypass Road.
Also worth watching for its tourist-pulling power will be the Splash Jungle Waterpark, in the new northern Centara Grand, better known as the West Sands Property Development, with 12 water slides, a huge Superbowl slide and a 335m ''lazy river''.
In order to attract even more visitors, many infrastructure development projects are being considered, as it is to everyone's advantage that Phuket tourists enjoy as many choices as possible in terms of entertainment and convenience:
.. The Phuket light rail and transport network.
.. A Patong tunnel, in which the Chinese government is reportedly prepared to invest as part of its promotion of mass transit and infrastructure on the island.
.. A plan for another major water park in Patong, on half of the 20-rai site owned by Chinese entrepreneurs down the hill near Nanai Road.
.. A new commercial centre for the Laguna Phuket entrance. Work on the community mall, Boat Avenue, is already under way and will be completed in early 2013.
.. The development of Phuket Deep Sea Port: The project envisages the addition of two berths with access bridges, increasing total quay length to 420m and adding a single-storey 900 square metre passenger terminal that would have a duty-free store, an immigration check, customs and a quarantine area, restaurants and shops.
Driven by bright prospects and spurred by growing international visitor totals, hotel performance during the first 10 months of 2011 recovered as emerging tourist markets replaced the US and European markets. With Asian economies booming, it is forecast that Phuket will be full of tourists all year round and we will also see the Phuket property market pick up within this year.
First published in the Bangkok Post's Spectrum section and reprinted with the author's permission. Risinee Sarikaputra is associate director of Research and Valuation, Knight Frank Thailand, email risinee.sarikaputra@th.knightfrank.com
Some of these visitors spend time checking out property in the area, which spawned a healthy market for villas costing 30 million baht or more.
The financial crisis that began in the United States in 2008 took some of the wind out of Phuket's sails as wealthy Westerners began to watch their budgets, but the island's tourism industry has barely missed a beat. The new wave of visitors may not all be jet-setters but they're happy to spend on tourism or property.
Visitors from China are now ready to contribute to a new boom in Phuket's economy. According to a survey by Ctrip.com, China's leading online booking agency, Hong Kong was the top destination for Chinese travellers, with Phuket second. Considering that Hong Kong is actually part of China, that puts Phuket in top position as an overseas destination for Chinese holidayers.
Russia, meanwhile, is also threatening to overtake Australia as Phuket's second prime source of tourists. One reason for the dramatic increase in numbers is simple. The severe winter weather in Europe, notably Eastern Europe, has shaken up many people and spurred a desire to relocate to safer, better homes. The busiest time is between October and April when the weather in Europe is really cold.
Previously, Russians were visiting places such as Turkey and Egypt in greater numbers, but due to the political unrest in those areas, and with the cost being about the same, many have turned to Phuket.
Another reason for the shift is that it's never been easier for Russian and other international tourists to get to Phuket. Many charter airlines now run direct flights between big and small cities in various parts of the world to Phuket.
The first Russian private airline, Transaero Airlines, has launched scheduled flights from Moscow and St Petersburg in Russia to Phuket airport. Next season, there will be more direct flights to Phuket from approximately 15 cities from Russia.
There are currently about 10 cities in mainland China that have direct flights to Phuket. Besides Beijing and Shanghai, these include Chengdu, Chongqing, Kunming, Nonbo, Taiyuan, Wuhan and Xian.
The island has found great success with the increasing number of direct flights. Phuket is abuzz with talk of all these new tourists. While some ultra-wealthy Chinese and Russians are regular visitors to the island, the new wave of travellers are mainly lower middle class.
And so, even though the number of tourist arrivals to Phuket has risen sharply, the total revenue of many shops along Patong, Kata and Karon beaches remains about the same as these tourists tend to come on package tours and are known for spending hardly any money outside their nearly all-inclusive packages.
The first 10 months of last year proved that Phuket is successfully gaining an increased tourist share. The emerging markets are Middle Eastern, up 63.2 percent from a year earlier, Asian (up 41percent) and Russian (up 14.5percent). Nevertheless, the hotel market did not grow strongly as impacts from the sluggish global economy are still being felt. The market was mainly supported by Asia-based purchasers who are less likely to be influenced by the debt crisis in European countries.
Patong is an area that is attractive for Chinese visitors since the location is convenient and full of facilities such as retail outlets, nightspots and restaurants. One major new attraction is the 1750-seat Siam Niramit Theatre on Ratsada-Samkong Road, off Phuket's Bypass Road.
Also worth watching for its tourist-pulling power will be the Splash Jungle Waterpark, in the new northern Centara Grand, better known as the West Sands Property Development, with 12 water slides, a huge Superbowl slide and a 335m ''lazy river''.
In order to attract even more visitors, many infrastructure development projects are being considered, as it is to everyone's advantage that Phuket tourists enjoy as many choices as possible in terms of entertainment and convenience:
.. The Phuket light rail and transport network.
.. A Patong tunnel, in which the Chinese government is reportedly prepared to invest as part of its promotion of mass transit and infrastructure on the island.
.. A plan for another major water park in Patong, on half of the 20-rai site owned by Chinese entrepreneurs down the hill near Nanai Road.
.. A new commercial centre for the Laguna Phuket entrance. Work on the community mall, Boat Avenue, is already under way and will be completed in early 2013.
.. The development of Phuket Deep Sea Port: The project envisages the addition of two berths with access bridges, increasing total quay length to 420m and adding a single-storey 900 square metre passenger terminal that would have a duty-free store, an immigration check, customs and a quarantine area, restaurants and shops.
Driven by bright prospects and spurred by growing international visitor totals, hotel performance during the first 10 months of 2011 recovered as emerging tourist markets replaced the US and European markets. With Asian economies booming, it is forecast that Phuket will be full of tourists all year round and we will also see the Phuket property market pick up within this year.
First published in the Bangkok Post's Spectrum section and reprinted with the author's permission. Risinee Sarikaputra is associate director of Research and Valuation, Knight Frank Thailand, email risinee.sarikaputra@th.knightfrank.com
Russians. The problem is the Russian type of tourism. Generally when plane arrives in Phuket the plane is mixed nationalities. Each person or family has made its own arrangements for Hotel or Resorts. In the case of the Russians Plane after plane arrives 100% full of Russians -part of tours, they are shuttled en-masse to particular Hotels or Resorts. They all eat in the same places, they all go to the same beaches, the do not mix with other nationalities. Thus is turns into the Russian ghetto situation that has arisen in Pattaya in the Jometien and Prantunmal areas. When you go to the beach you do not see a scattering of Russians through the beach, but whole area Russified. Their english skills (the generally accepted tourist language of Phuket and Thaiiand) are minimal, which also makes it hard to get to know them. I am sure they are generous lovely people, but the seemingly invasion like atmosphere the tours project can cause resentment among other tourists. When they mature into single travelers making their own decisions the sun will shine brighter where ever thy go.
Posted by Capealava on March 18, 2012 16:18