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Methee Tanmanatragul (left) joins tourism industry players in a seminar to discuss how to cope with the downturn.

Phuket Resorts Down But Not Out for the Season

Tuesday, November 25, 2008
UPDATE: Phuket Governor and Airports of Thailand say Phuket International Airport is operating normally, but some flights have been cancelled. Full story soon.

PHUKET RESORTS are seeing fewer bookings this high season. But the island is expected to weather global economic turmoil better than other destinations in Thailand, an industry spokesman has told Phuketwan.

Methee Tanmanatragul, President of the Thai Hotels Association, Southern Chapter, says that occupancy rates among Phuket THA members are expected to be 60-70 percent through the coming high season.

High season usually runs from November through March but this year it is starting later.

It will almost certainly end earlier and fail to deliver economic security for what lies ahead: a lower-than-low ''green'' season.

Occupancy in Phuket resorts in November is running at 57 percent, down from 75 percent over the same period last year, the THA reports.

But Phuket is still strong enough to withstand the economic slowdown, Khun Methee says. So far no resorts have reported layoffs.

Some, however, have been asking staff to take voluntary leave, in some cases without pay, he says.

Resorts are taking measures to attract bookings, such as offering an extra night free for multi-night stays or including more meals or other services in the booking prices.

But no resorts have so far slashed prices to fill rooms.

"It's not a price issue," said Khun Methee. "It's a travel advisory issue."

People are adjusting their travel plans to suit tighter budgets, but are not yet cancelling travel altogether, he says.

But with the political faceoff escalating in Bangkok, some travellers are choosing to go to places viewed as being more stable, he says.

Travel advisories were also making insurance coverage costs higher, he says, which was an important factor for agents booking group tours.

While Phuket resorts are expected to survive through the high season, it will be the low season from April (or even this year, from March) that will be a real test for the industry, he says.

Things look brighter north of the island, with Phang Nga resorts faring much better in the months ahead that most other destinations in Thailand.

Khao Lak is expected to outperform Phuket, says Khun Methee, with occupancy rates of 75-80 percent expected for this high season.

Phang Nga also can provide a good example for Phuket in how to get through extremely quiet low seasons.

Staff sometimes find the prospect boring and begin looking for other jobs, an outcome that Phuket resorts may not think is such a bad thing in a disastrous 2009.

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The PAD has gone MAD. Mutually Assured Destruction was once applicable to all-out nuclear war. Now the PAD/MAD has assured the destruction of both the tourism industry and democracy in Thailand. These people do not deserve to be treated with kid gloves any more. Too much hands-off by the authorities has left all of Thailand suffering at the hands of an arrogant, thoughless and thuggish minority.

Posted by angelfire on November 26, 2008 12:04


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