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Governor Gives Five Million Baht as Phuket Resorts Battle for Quality Tourists
By Chutima Sidasathian Tuesday, September 22, 2015
PHUKET: Phuket's Governor is giving five million baht to the Phuket Tourist Association to research whether Phuket has enough resort rooms or needs more to cope with future expectations.
News of the grant from Governor Nisit Jansomwong's budget comes as debate continues about the future of the holiday island's tourism industry.
Industry leaders today flatly denied that a limit was being considered on tourists making trips to islands off Phuket, pointing out that national marine parks already have official limits that were mostly failing to be enforced anyway.
The question of the number of tourists that the Phuket region can sustain is still only being weighed in terms of the private enterprise factor of supply and demand.
But there is wholesale opposition - except for the bottom-liners - to the Tourism Authority of Thailand's latest ''buy one, get one free'' special offer.
''This approach dumps prices and encourages cheap tourism,'' Dr Kritsada Tansakul, Phuket-based southern director of the Thai Hotels Association (Southern branch) told Phuketwan today.
Fifteen hotels in Bangkok and 17 in Phuket signed on for the cut-throat ''Thailand Stronger Together'' deal.
''We want tourists to come to Phuket because of the region's appeal, not because of cheap prices,'' Dr Kritsada said.
A number of resorts in the Phuket region were already delaying opening plans in the 2016-2017 season because of the economy and over-competitiveness, he said.
The ''invasion'' of Chinese tourists had led to a rush towards unregistered apartments, two-star and three-star accommodation.
''Numbers coming through the airport may be increasing but they no longer have a relationship with revenue because the new tourists spend just a few days on the island where the previous visitors once spent two or three weeks.''
The aim should be to attract long-haul visitors who stayed much longer, he said.
But he noted that signs for the coming high season from November 1 were bright, with forward bookings now at 40 percent compared to 20 percent at the same time last year.
Beach management remained a problem, he added, with some councils providing too much information and others too little.
Phuketwan believes the rapid development of the Andaman region must be slowed by making entrepreneurs pay more. Future developers should provide their own water supply and 20 percent of their own power, Phuketwan suggests, to make the future sustainable.
Management of all Phuket beaches should be placed in the hands of one Phuket Beach Authority, according to Phuketwan - a solution that meets the approval of the Prince of Songkhla University researchers who recently recognised that removing the councils from the equation is the first vital step to sustainable, sensible management.
The future of Phuket's beaches is likely to become clearer with the arrival of Governor Nisit's successor, Jamleran Tipayapongtada, early next month.
As a former Phuket vice governor, Governor Jamleran is expected to take a dim view of commercial activities on the beaches and to look to act to give Phuket a sensible public transport system.
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PHUKET: Phuket's Governor is giving five million baht to the Phuket Tourist Association to research whether Phuket has enough resort rooms or needs more to cope with future expectations.
He can give B5M to me and I will advise him whether there are enough rooms.
Posted by
sid
on
September 22, 2015 15:36
Better off spending money cleaning the beaches and the surrounding water, thats more likely to attrasct tourists, or not put them off returning.
Nai Harn is still a mess especially the south end by the lagoon (can send you photos if you want ED)
Posted by
Michael
on
September 22, 2015 15:44
Where does Dr Kritsada get his advanced booking numbers. I believe it is wishful thinking that numbers from November are up 100 pct over last year. Not what i or many of my Colleagues in the industry can confirm . We believe that we will have a challenging high season ahead of us . Australia arrivals slowing due to the Economy and weak exchange rates , European confused about the beach managment moving to Kao Lak, Russians still with a currency devaluation hangover. Happy for all resorts with 100 pct more bookings on the book than last year for most of us wishful thinking
Wolfgang Meusburger Holiday Inn Patong
Posted by
Wm
on
September 22, 2015 17:15
AGREED Michael - let's have the klong leading down to the north end of Kata Beach cleaned up with all who dump their filth into it held accountable, starting at the fixed market on Patak Road.
With regards to room availability, one minute TAT is giving 'buy one get one free' & next minute there is a shortage. Stop building on Phuket & clean up the filth.
Posted by
Logic
on
September 22, 2015 18:00
@sid
"He can give B5M to me and I will advise him whether there are enough rooms."
Your just demonstrated an unscrupulous approach and apparent lack of business acumen, implying there is excess of rooms all over the Koh Phuket.
But that is not true:
the fellow poster Simon Luttrel recently well explained here that there are areas of the island where are there is irreparable excess of room capacity, and any case to add more rooms there, is slated to fail.
And, there are areas where is lack of rooms, and there potentially successful business case can be built, the art is to recognize such areas.
And yes, another element mentioned, is to differentiate from competitors, not just to built a generic product,same like next door competitor.
S.L. well proved the above as is running or have been running couple of sucessful properties, and yes, expanding to new locations and by offerring different stuff than already on the market.
I guess you don't judge about, say, some medical conditions , its diagnosis and treatment, with the same housewives' know-it-all intellectual approach..? The same approach would be good to extend to other professional areas, like e.g. business.
Posted by
Sue
on
September 22, 2015 18:24
Dear Governor
I will do the research for you for just THB3M
Phuket has more than enough hotel rooms already.
There we go, where do I send my account number?
Posted by
Discover Thainess
on
September 22, 2015 18:28
Michael pointed exactly to the area that is failed the most:
the quality of natural enviroment , namely, the most important for tourism sector here - beaches, that are ultimately under public authorities management - and provincial authorities and furtheer down grossly, unnecessary, without excuse failed to exercise their authority to legislate on the matter - to establish the beach managment model, set accompanying rules, responsible bodies, allocate to them budget and other resources, regulate - or request to do it from particular agencies/Ministries, issues like coastal traffic and jet-ski hire business.
Beaches need to be managed form various aspects, incl. regular cleaning.
2 times per day garbling of all major public beaches by minimum wage laborers is perfectly affordable, and is even more need in green season when that "garbage from Indonesia" arrives.
I recall how garbling was doen in Carribena on Antigua is., incl. on a nudist beach - two person slowly walking across whole area, one person is looking for pieces of garbage, teh other one picking it up, every cm2 or sq.inch is carefully inspected every day. There was no single visible piece of garbage at all.
Posted by
Sue
on
September 22, 2015 18:32
Tourism related businesses do not need tourists coming on cheap packages at 50% discount or more but instead they are looking for tourists with money to pay the normal prices of any services during the period they are on holidaying in Thailand.
Posted by
WhistleBlower
on
September 22, 2015 21:04
I can see the whole alter-economy of unregistered apartments coming to a head soon as hotels suffer - many people I know do it. Some folk are installing 8 bunkbeds in 1-room condos to accommodate large groups of Chinese and selling it on Airbnb, effectively turning condo blocks into hostels. It is not good, but it is happening.
Posted by
Geoff
on
September 23, 2015 16:07
"lack of business acumen-the quality of natural environment"
Sue, the above two statement is nearly funny considering how it is here today vs just 20 years ago or as yourself say it "unscrupulous"
Posted by
Harald
on
September 23, 2015 22:12
Geoff
for you to know airnb has global reach, and its penetration of Thailand market is far behind than of other market.
Yes, it offers opportunity for many people to travel, which they would not be able to afford otherwise, or to stay in a fancier property than they would get for the same price at hotel market.
What's wrong? Expensive taxis are bad, tehy shoudlb be cheaper< yes? But cheaper accomodation options aren't good.
And how backpackers from US and Europe travel around the world? Don't they sleep on bunked bed..? Chinese on bunked bed are bad, farangs are good, right?
What people from traditional markets don't like is that Chinese are becoming richer and getting more money for travel, by this squeezing other traditional tourists into higher priced segments to get the same quality as before. That is really what people are not happy about.
If 15or 20 yrs ago it was possible to ahve 50USD per day fabulious holdiays, as there was no competition on demand side even in this price segment -now it's not true anymore.
Take a look on resort prices around US, you'll get complete sxxt for less than 200-300USD per nigh, but real comfort and quality will come only at higher prices. People from developed countries should holiday on developed countries' tourist budget, and not complain that they can't holiday anymore on emergency market tourist budgets.
Posted by
Sue
on
September 24, 2015 00:31
5 million baht later conclusions drawn are more infrastructure improved electricity supply, garbage disposal water supply / drainage and a workable transport system so they leave their hotels and spend, the obnoxious unkempt overcharging tuk tuk driver leaves a bad taste on the Phuket holiday experience address these issues then we can advance with a sounder economic structure for the future.
Posted by
slickmelb
on
September 24, 2015 01:00
Harald,
sorry, that only means that future business opportunities lie with not exploiting natural assets but oferring to visitors more of urban pleasures ,like day-long in life-style malls, theme parks etc. - and that trend is already on a rise,as regional tourists, not long haul ones,are the main target group - they are interested in beaches much less,and will be satisfied with experiences as described above - and in addition,that all is taking place not in coastal areas.
Posted by
Sue
on
September 24, 2015 05:07
By now there are a lot of illegal 'guesthouses' in condo complexes. Sure the authorities know that, but they 'profit' of it as well.
However, that brings no quality tourists, not even filling up the rooms in the legal guesthouses.
Posted by
Kurt
on
September 27, 2015 09:29
Kurt
there is virtually zero red tape to operate guesthouse in Thailand, and zero for serviced apartment - unlike for hotels, that require, among other, registration with province, and HALF of them don't bother.
I wonder what you call "illegal operations"... can't see any, I think it's quite legal.
Potentially zoning&planning rules can be violated if a building is of assigned residential function as a guesthouse would be a kind of public/commercial function ( but serviced apartments not).
Airnb is based in whole on that concept.
Yes it's illegal to rent apartment short-term in few locations around teh world - but those are absolute exception.
Aitrnb often allows to stay , say, in 2 BR palce for 300 USd instaed of paying for a suuite ina hotel 1000USD, and many people use such opportunity, so no need for denigrating labelling of them as non-quality touristic crap - amny people, say, from Germany, goes during summertime to Adriatic seaside, say, to Croatia, and renting cheap-cheap, but nice apartments 30EUR/day, not hotel rooms ..)
And institutional investors began to look more closely into serviced apartment sector - and who knows, may be it will change hotel sector business model forever (giving abundance of shopping, F&B infrastructure unlike it was 100 years ago):
http://goo.gl/ydx6Uh
Posted by
Sue
on
September 27, 2015 18:13
Any chance the beach beds and umbrellas are
back on the beaches this coming January. If not, I'll be going somewhere else.
Posted by
Per
on
September 27, 2015 21:15
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PHUKET: Phuket's Governor is giving five million baht to the Phuket Tourist Association to research whether Phuket has enough resort rooms or needs more to cope with future expectations.
He can give B5M to me and I will advise him whether there are enough rooms.
Posted by sid on September 22, 2015 15:36