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Phuket, Phang Nga, Krabi Resorts Boost Occupancy as Formula Changes

Sunday, July 28, 2013
PHUKET: Occupancy rates are improving at resorts on Phuket and in Phang Nga and Krabi. But putting more guests into beds has been accompanied by a downturn in quality, says a senior tourism industry representative.

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.

Comments

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Mr. Suchart is wrong with his analysis for June. The Graceland in Phang Nga province ( i.e. Khao Lak ) opened in July, how can it produce figures for June ? People going public with their work shoulbe be prepared better...
BTW - the 5* hotels re becoming 6* than ? What a rubbish proposal. Actually there already is a massive oversupply of rooms and this is why rates are dropping and hotels have difficulties malking profit ( to the benefit of the customers), though more hotels to,as recently reported. Why do Governors allow more and more hotel contructions instead of affordable appartments in decent quality ?

Posted by Resident on July 28, 2013 09:00

Editor Comment:

Governors have no control over development. Perhaps you should look around Phuket. There seem to be plenty of apartments under construction.
You are free to misinterpret what's written as you please. but there is no mention in the article of six-star. However, there is a difference between a five-star resort where the room rate is five-star and a five-star resort where the room rate is four-star.

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A friend who was GM of major 4/5 star hotel in Krabi told me break even was as low as 20% occupancy

Unlike in EU/USA labor costs, the biggest single overhead, are substantially lower in Thailand. Yet room rates are often very similar

The gross margin in three poolside beers covers a days wages for the server

Posted by Barry on July 28, 2013 17:06

Editor Comment:

If the room rates in Europe were about the same as those in Thailand, Barry, there would surely be little reason for people to come. But you're certainly right about labor costs being much lower.

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The Sensido Gracelands, though due to open July is not fully operational until November with its official opening not until December and with very little occupancy so far. So they can be discounted from any June figures. Other new developments though that opened during the last High season have indeed drawn in new visitors, particularly Australians who are now favouring Khao Lak for their "Winter" vacation to Phuket and to some extent Bali. The comment about Russian. Korean and Chinese package tourists in lower end accommodation is not really evident in Khao Lak - yet! - as there aren't that many places to "flash their cash" as in Patong, for instance.

Posted by Baralan on July 28, 2013 22:10

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As for room rates. Was recently at 5 star hotel in Gran Canaria - maspalomas palace. circa 270 euros a night inc breakfast and impressive buffer. A similar hotel in Krabi - the spg one for example is circa 4000-7000 b a night room only. Add in breakfast and dinner for two plus wine at one third the price in Spain and theres nothing in it

Posted by Barry on July 28, 2013 22:19

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Well, a lot of five star hotels in Southern Thailand border Europeans in rates. Why people go to Thailand instead of a european destination? Simple, the answer i wheather. As you might know, we have something called Winter here in europe...

Posted by Swede from Malmo on July 28, 2013 22:36


Sunday November 28, 2021
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