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Phuket Resorts Plan Big New Year Discounts

Monday, December 29, 2008
BIG resort discount promotions are coming early in the New Year to speed Phuket's recovery from the 2008 blockades bombshell.

With passenger flights to Phuket down by 30 percent in December and worse lying ahead, the Thai Hotels Association is striving to lift the tourism outlook any way it can.

Already, some big-name resorts have jumped the gun by slashing prices, which usually stay high through the December-April high season.

The year-old Sala Phuket for example, is offering ''stay one night get one free,'' which means a couple can stay for a fortnight for the price of a week.

Discounts are going up on billboards along the island's west coast, where Patong resorts are expected to offer big savings as the high season fades and occupancy rates shrivel.

Traditionally, Thai-owned Kata and Karon resorts resist price-cutting. But 2009 is going to be so difficult that this season, their resolve may crack.

The 116-villa-and-room Adamas Resort and Spa Phuket at Nai Yang is offering a discount of 30 percent until March and free dinner for two or a spa for two for Asian customers who stay three nights.

Stay seven nights, and you get the free offers again. About 40 percent of customers cancelled over the past month, although 10 percent, mostly from Russia, rebooked once problems ceased.

December occupancy was running at 40 percent compared with 100 percent last year and a 60-65 percent average for the whole of 2008, a spokeswoman said.

The new 83-villa Anantara Phuket Resort and Spa at Mai Khao is offering a ''stay three nights, get a fourth free'' promotion until March 31.

Two months after opening, the resort is not yet in a position to suffer greatly. With occupancy rates at 50 to 60 percent, a spokeswoman said, the blockade dropped rates by 30 percent.

Club Andaman resort in Patong has adopted a "flexible rate" policy for its key groups and is doing free add-ons such as "stay five nights and get one free dinner", says an executive at the resort.

Club Andaman lost an estimated 5 million baht as a result of cancellations during and after the airports blockade.

Though during the week of December 31-January 3 Club Andaman is 90 percent full, occupancy rate in December overall was 63 percent, compared to a rate of 88 percent in December 2007.

This month through February 2009 bookings are down 25 percent from the same period last year.

Bookings for the whole year 2008 are down 15 percent from 2007, the Club Andaman spokesman said.

Yawning ahead for all resorts is a chasm of unknown depth and width. Forward bookings simply disappear from March-April onwards.

Travellers who have paid for all or part of their Phuket holidays will come in February and March rather than lose the money. Beyond then, tourism will get tougher.

January 5 will bring the big burst of savings packages from resorts, golf courses and spas as the THA southern chapter goes into overdrive to sell Phuket to the world, through the Tourism Authority of Thailand.

Phuket's collection of six branded resorts at Laguna Phuket has already acted, trumpeting a low promotion price of 1799 baht a night via a Thai chat site email.

Along with other resorts, the group is exploiting every possible avenue to find new guests and restaurant customers.

The scale of the disaster triggered by the eight-day blockade of Bangkok's airports is reflected in the layoffs happening now across businesses of all kinds on Phuket.

However, the downturn is uneven, depending on sources of guests. La Flora resort in Patong, another recently-opened resort, says it has a 90 percent occupancy.

Most of its guests are from Europe and being right on the beach in the island's leading resort town, it also attracts walk-ins.

But numbers generally are quite a long way down this year, as reflected in retail shopping outlets.

Phuket Square, the operator of Jungceylon at Patong, recently announced a revision of its business plan for 2009.

With reduced numbers of foreign tourists, CEO Pravit Janyasithikul said the company would next year focus on locals and expat residents.

''We have revised the proportion of foreign tourists visiting the Jungceylon shopping complex from 70 per cent this year to about 60 per cent next year,'' Khun Pravit said.

He said Jungceylon would invest 35 million baht in on-site activities, down from 42 million baht.

A campaign called ''Sunshine Smiling at Jungceylon'' will run throughout the year. On good days, the mall and its 300 outlets can attract 40,000 shoppers.

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Tuesday April 30, 2024
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