First, the figures: Phuket's overall occupancy for June rose 7.8 percent over last year to 64.85 percent, according to figures compiled by the Thai Hotels Association (Southern Division).
Five stars rose 8.07 percent to 70.57 percent, four-stars stayed level at 74 percent, while three-stars shot higher by 15.3 percent to 50 percent.
Phang Nga in June had an occupancy rate of 25 percent (up 13 percent) while the figure was 32 percent in Krabi (up seven percent.)
Suchart Hirankanokkul, President of the THA (Southern Division) says the number of rooms in Phang Nga has been boosted by the opening of new resorts by three well-known Phuket brands - the Kata Group, the Ocean Group and his own Graceland Group.
But he said the rise in visitors from China, Korea and Russia, often in package tours, was proving to be a boon for two-star, one-star and even apartment block accommodation across the Andaman holiday region.
The surge at low price levels meant that five-stars were being forced to drop their prices to four-star levels, four-stars were competing with three-stars, and so on.
''Ideally, Phuket, Phang Nga and Krabi should be moving the other way, with three-stars upgrading to four-stars and four-stars upgrading to five-stars,'' Khun Suchart said.
The downward movement is accompanied by shorter-stay guests replacing the longer-stay Europeans, so the increase in numbers does not necessarily reflect an improvement in revenues.