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More resort rooms mean more competition and rate bargains on Phuket

Phuket Passengers Keep Rising But Don't Expect the Boom to Continue

Monday, May 12, 2014
PHUKET: Holiday islands do have quieter moments, and we suspect Phuket is due for one. The figures for passenger numbers through Phuket International Airport rose in April, but it was an exceptional month.

Political protests in Bangkok probably forced some people to look at alternatives, especially Phuket. Thailand's New Year was followed by Easter. Yet arrivals and departures on Phuket rose by just 7.89 percent.

It's true that this is carping. Most of the time, 7.89 percent would be deemed a great effort, with Thailand struggling to hold its tourists.

Yet given the good numbers that have been generated over the past 18 months on Phuket, April could be considered a bump in what has become a levelling off of Phuket arrivals and departures.

With banks spruiking the tourist numbers to sell condos and some false figures still flying around, the turnstiles at Phuket airport are a reasonably accurate measure of Phuket's popularity.

The 994,966 total for international and domestic passengers fell just short of seven figures. But the outlook is not especially positive.

Since October, the rate of international passengers has levelled out like so: October +21.73 percent, November +18.98 percent, December +10.94 percent, January +14.40 percent, February +4.47 percent, March +4.74 percent.

There is no need for panic yet. But anyone planning to open a resort really needs to do their research and work out whether Phuket is going to continue its amazing trajectory of increasing tourist numbers, or level off.

With more tourists turning left from the airport and choosing holidays in Phan Nga and Krabi, we suspect numbers of arrivals and departures are about to level off.

Sadly, there is nobody who gets to decide when Phuket has about the maximum amount of tourists to achieve a balance with nature. At some point, there will come a day when Phuket can cope, and a tomorrow when it cannot.

The big news story in April was the polluted water at Phuket's beaches. We think that the critical decisive moment for Phuket sustainability is just about here.

Comments

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I work in a luxury resort in Phuket and low season kicked in this week, as of today we have 70% less guests than last week and the trend is set to continue for the next couple of months,this has all been forecast for,the larger hotels are still reasonably busy but talking to my colleagues in similar properties small luxury hotels they are all becoming very quiet.

Posted by Steven Jameson on May 13, 2014 08:52

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And Easter was late this year. Also would be interesting to see the days of stay per tourists groups. I suspect the Chinese as a group to stay quite shorter, so their big number could overrate their impact and inflate the air travel numbers a little. And air travel is the new bus to Bangkok for a lot of locals too.

Posted by Lena on May 13, 2014 13:07

Editor Comment:

Indeed. Numbers up, revenue down.

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I work in a bigger resort and can confirm that in total, business last year was better. Now occupancies and revenue started to drop. Slowly but steady. There are first signs of oversupply in Phuket and instead Khao Lak / Phang Nga are attracting more and more travellers, especially from European markets.

Posted by Jakub P. on May 13, 2014 14:13

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same situation in Rawai.. Russians are disappear.. so last year same period nearly frull booked, next months dow 70%.. I think that this is just the beginning of the shame condition caused by pollution and rising prices..

Posted by dave on May 13, 2014 14:14

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If they come in record numbers, where do they go after they get out of the airport ??,they are certainly not on Phuket.

Posted by Col on May 13, 2014 18:41

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How many are visa exempt "tourists" but actually residing here?

Posted by The Night Mare on May 13, 2014 18:43

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As for Russian market, high season of this year was made longer by some companies. For example, most of charter programs last year were closed between 1 and 15 April, and thus year - between 15 and 30 year. And daily regular flights from Moscow this year continued until 12 of May (last year 7 flights a week program was dropped to 4 flights a week in the beginning of April). 3 flights a week program starts today.

Posted by Stranger on May 14, 2014 07:40

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Is this some fake advertising from TAT - the only tourists coming to Phuket are cheap charlies on package tours who drink beer at 7/11. The numbers are up due to increasing visa runs and the congo line of sexpats. Phuket's day in the sun is well and truly over

Posted by Damien on May 16, 2014 14:36

Editor Comment:

Too too cynical, Damien. There is no reason to believe the AoT figures are falsified. But you are right to some degree - every click of the turnstile is recorded, so residents' trips for all reasons are among the totals. Visa runs wouldn't be as significant as business and family trips of all kinds.

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For all those positively minded who were thinking that tourists and investors will be coming back into Thailand may be wrong for many reasons such as:
- We may have more strikes and civil unrest for the coming months even years will have catastrophic consequences in economy, investment and tourism.
- No government => no budget for new project developments for the coming years.
- According to many financial media, Thailand will enter in recession.
- Large international investors from Asia, Europe and North-America may not extend their factories in Thailand and may built new ones in neighbor countries.
- Oversea tour-operators will be looking for alternative destination for the coming season 2014-2015 as in case of "Coup D'Etat" or civil unrest, travel insurance companies will not be covering expenses in case of repatriation and the journey in Thailand.
- Much less Russian to visit Thailand because Russians have a ban to use credit card (Visa, MasterCard, American Express) since one month and Russia will enter in recession in 2014 following unrest in Ukraine without forgetting a ban by Russia to travel with large cash money. Real Estates have problems to cash in sold properties.
- El Nino is coming with the start of coral bleaching in the Andaman Sea and the Gulf of Thailand sending a message to worldwide divers to find alternative dive destinations for the coming season 2014-2015.

MAI PEN LAI - Anyway, the best point is that we will have a lot of months of holiday and enjoy Thailand for a while with our friends (Thais and foreigners alike).

Posted by Whistle-Blower on May 16, 2014 15:32

Editor Comment:

Far too much of the Doomsayer in you in that response, Whistle-Blower, and most of it guesswork. Best not to go there. Everything could turn around tomorrow, or the day after that . . .


Saturday November 30, 2024
Horizon Karon Beach Resort & Spa

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