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Thailand Needs Phuket II: Government Given Two-Year Deadline Before Tourism is Destroyed
Friday, December 12, 2014
PHUKET: A stinging attack by one of the leaders of the industry gives Thailand just two years to turn around tourism or face its destruction.
''What Thailand needs now is a Phuket II, a chance to start over,'' said the president of Dusit International, Chanin Tonnawanik. His comments are likely to ignite a firestorm of criticism.
Khun Chanin told prachachat.net that room rates at Thai resorts and hotels had stagnated for years while rates in neighboring countries continued to grow.
Khun Chanin blamed an obsession with total numbers and lack of sensible strategy for the Thai industry's stagnation.
Dusit has 23 hotels and resorts in Thailand and overseas and plans to add 30 more in the next three years.
With Dusit recently expanding with the Dusit2 brand in Patong on Phuket, Khun Chanin said: ''Phuket no longer has the ability to take more tourists.
''We have to make a plan for Phuket II.''
More broadly, he said the Tourism Authority of Thailand's obsession with increasing total numbers had harmed tourism's future.
''Thailand has been having a lot of political problems of different kinds for 10 years,'' he said. ''Hotels have not been able to increase room rates for five years.
''In that time room rates have gone up 200 percent in Singapore and 100 percent in Hong Kong. Even in Myanmar (Burma) rates have risen over the past three years to match those of Thailand.
Thailand was ''the cheapest destination in the world'' with five-stars available for $80 a night, he said.
''The TAT has only been concerned about numbers and the previous government only sought more mass tourism.''
It was good that the TAT was now trying to promote less well-known Thailand destinations but the balance was still wrong.
Education failings and poor language skills were undermining the reputation of Thai hospitality. Illegal hotels were also being allowed to flourish without enforcement of rules and regulations.
''Within two years, if this government does not fix the problems, it will mean the destruction of tourism - and it will be the government's fault,'' he said.
The stinging comments are likely to alarm the government, which has been trying to revive tourism without addressing key issues raised by Khun Chanin and others.
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Comments
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Not only did the rates not increase, they seem to be going down... friends with small to medium sized businesses are suffering 20-40% lower revenues right now... the only hope is NEXT high season... waiting for 2017!
Posted by
J
on
December 12, 2014 20:40
He belly-aches about room rates stagnating then says he wants to open 30 more hotels! Sounds like another rich guy whining about not being rich enough. Has he heard of the concept of 'supply and demand?'
Posted by
Arun Muruga
on
December 12, 2014 20:49
PhuketWan, thanks for this information. Khun Chanin/Dusit thanks for your (timely?) Warning. I hope it SHAKES up a "FEW" with power & guts! SOME of those with "Authorisation" in last decinia had more empty words/promises but sometimes personal intrest & Greed in mind. (& DEEP pockets and if affordable Backed Up with Home Safes & Mia Noi's apartments & luxury cars on the ladies or family names).
Personally I cry for what I have seen happening ladt 15 years. My love & respect for 93.7% of the Thai is so BIG I'll miss them and I'm sad for the misery I see for-coming from the broken Rice Bowl with "stolen & wasted" changes & oppertunitis. My personal loses family & financially wise I'll never overcome. I HAD so much confidence in my beloved Thailand my (2nd) home. Regretfully I'll never recover from my (private/personal) loses. All this because some with personally intrest didn't kept their promises to him who is my Nr.1
Posted by
phuketgreed
on
December 12, 2014 21:26
Lack of infrastructure transportation safety codes & standards enforcement, conmen scam artists corruption & overcharging a high death rate from drowning's speedboat collisions the road toll and other causes, decades of talk but no action to address the issues here of any long lasting substance Phuket has a foot in the casualty department of bygone and yesterdays tourist destinations.
Posted by
slickmelb
on
December 13, 2014 01:24
the tourist industry is reaping what it sowed. Phuket is just one rip off after another. Hotel chains built too many hotels themselves and now just want fill those rooms so give cheap deals to Chinese, Indian & Korean tourists who do not spend the same as Western tourists. I would not want stay at a hotel paying full rate when it is full of Asian tourists paying less
Posted by
Shwe
on
December 13, 2014 05:59
Gosh where does one start..
''How about cleaning the beaches'' ... and setting up some Public Transport, Affordable Taxis, and of course, get rid of those ''Jet Skis''..
Posted by
robert smith
on
December 13, 2014 09:01
There is still too much window dressing going on in this country, unfortunately. And i believe that the reason for this is, because most high officials have their priorities completely messed up.Money seems to be, still, the only thing that walks here, but in many cases it walks straight into the wrong pockets.Instead of building new hotels, left, right and center, why not focusing on the existing ones, and make them better, more attractive with educated people, and finish the empty shells, cluttering the whole island.Why is it so hard to go back to basics? It seems that so many locals have forgotten their roots.It used to be the land of smiles, but now the neighboring countries are smiling. And still,many Thais don't want to admit they're on the losing end. I love this place, but my love for the country and it's people has had rough times, the last few years, and if it wasn't for the fact that i have too many responsibilities here, i would have been gone already.
Posted by
Carl
on
December 13, 2014 09:08
Phuket lost it's charm years ago, they don't need another Phuket. What is required is sensible, enviromentaly friendly tourism.
Posted by
Peter
on
December 13, 2014 09:13
Forget the thought that a Phuket II will be different from present Phuket.
After the tsunami in December 2004 than was the chance to reshape Phuket and Pi Pi Island. Well? It was just redone the same as it was. As long the Phuket people not organize a good public transport from 6 AM till midnight( airco busses and bus stops). A bus shuttle line along the west coast beaches. Taxi fares 50% down. A non corrupted Immigration. No water polluting untreated water from hotels, guesthouses and laundries. Normal clean and safe unbroken pedestrian walking spaces. No different pricing for foreigners. Ah, there is so much more to improve on Phuket. As long the foreign envoys (Ambassadors, Consuls) have to hammer time after time the same issues, and nothing improves,.. than do not think a Phuket II will be different of the present Phuket. Phuket is to much specialized in negative things. More and more tourists experience, and proposed tourist read at home on internet what Phuket 2014 really is. It shows already in lower numbers of tourists/revenues. The weekly Patong hill shows by busses and trucks, with and without casualties due to always 'brake failures', the uncountable thai driving without driving license or drunk/under influence of drugs. Phuket has a very bad image this moment. And beside beach clearing of chairs/umbrellas things are very unpleasant around, even getting worse.
Posted by
Kurt
on
December 13, 2014 12:14
Phuket/Thailand will never have a Plan B, as its never had a Plan A ! Dusit is dreaming if it thinks rates are going up anytime soon.
Thailand's infrastructure, especially in Phuket is pathetic. Who in the modern world would put up with daily power cuts or the appalling transport system on this island and still expect to be able to charge more?
Only the complacent thais.
Until these fundamentals and the dire education system is tackled Thailand will continue, by virtue of its wonderful geographical position, to attract tourists. But only the lower end ones. The better quality tourist is already moving on.
Posted by
jimbo34
on
December 13, 2014 12:16
Good to hear someone talking sense. Let's hope the right people are listening and take action. I am sick of listening to some people talk of the need to re-brand Phuket and taking attention away from what Phuket really needs which is the core problems (most of which have remain unchanged for years) fixing.
Posted by
Duncan
on
December 13, 2014 12:28
Khun Chanin can not compare Thailand with Singapore and Myanmar. Has he been in Singapore? Non corrupted, excellent public transport. Fine and good taxi services. About Myanmar, of course Myanmar lately is catching up. Vietnam and Myanmar are left and right overtaking Thailand. Why? 1: language skills. 2: Service attitude. 3: Focus on guest needs ( not own greed). 4: these countries not say like thai do,..."This is the way we do it", and than not adjust or move forward. Why, Khun Chanin, all Phuket accomodations are nearly 50% empty during this high season? Phuket lost flavor. No pedestrians walks ( look that road behind Jungceylon.) No greenery, no trees like in Singapore. No parks in Patong, it is all just concrete. Patong only has it's beach, and there you irritate the tourists with parasail and jet sky businesses. You want to be a tourist destination? Than do what tourist wants! Funny example, eating in a restaurant, suddenly loud disco music started, my friends and I could not continue conversation. Asked to stop that. Answer: "No, the staff like it". Do you get it, Khun Chanin?
Posted by
Kurt
on
December 13, 2014 14:38
Editor Comment:
He's merely comparing room rates, Kurt, and everybody can do that. He is also talking about Thailand, not just Phuket. I think Khun Chanin ''gets it.'' I'm not so sure you do. Fifty percent empty? I don't think so.
I hope Phuket two has lots and lots of umbrellas and sunbeds..Phuket one is doomed with-out them..Tourist want them,demand them..
Tourist will adjust to not having umbrellas and sunbeds alright by voting with their feet and dollars..
Posted by
bob
on
December 13, 2014 16:39
Been here 5 days, apprehensive at first because of missing sun beds and brollys, it's the best thing that could have happened. Got my own mat and brolley and on the sand, lovely. No ugly rows of chairs. Now who is going to clean the beach, bags of rubbish everywhere? it's like going to a normal beach at last.
Posted by
Jak
on
December 13, 2014 17:29
I have a different view to price increases than Khun Chanin. 5 years ago I paid 1000 bht for a 35sqm room in a guesthouse in Kata, earlier this year it should have been 1600. Toilet paper not to put into the toilet, but into the bin only. In the shower you had to jump around to get wet, as the waterflow was too poor. We changed to Maja Dim Sum in Kata, paying 800 bht, very nice room, looked completely new, two showers, free wlan. However in Feb 2015 price is up to 1000 bht. Including the euro/bht 1-49 in Feb 2014 to 1-40bht of today it is an increase of 50%. Prices for food 5-6 years ago in Kata near the beach an average of 80-100bht, on Patak Road 40-60bht. This year Kata near the beach 120-180bht, Patak Road 60-100bht. I'm talking about some rice or noodles with chicken or shrimp. Bis Tomyam soup Patak Road Kata 80 bht, small Tomyam Karon 150bht. This is more than I pay at home. I do not see prices going down at all, but indreasing not slowly but very fast to western standard wihtout having the western standard in quality (except for the food^^).
Small barbeque stick with 3 pieces of very thin chicken 20-25 bht in Kata, 4 pieces in BKK 5 bht. Prices down in Phuket??? Ha Ha HA
Posted by
Bregoulou
on
December 13, 2014 20:04
Editor Comment:
Nobody said prices were going down on Phuket. As you point out, it's quite the opposite. But at the quality end of the market, room rates have not moved higher because Phuket has not made itself more attractive to ''quality'' customers. More visitors are like you, in the mid-range category - and being put off like everyone by extortionate prices. It's called greed.
Kurt I agree with you totally, as a traveller to Thailand for many years I had the pleasure of first visiting Phuket back in the early 80,s in fact the new airport then still had the protective wrapping on it. I visited Phuket with my wife and two teenage daughters in 2011 & 2012. After sitting down and reviewing the last trip we both decided we should have gone to a different destination. As you stated in your post empty promises and greed that has been been going on for so many years now it's just part of the normality of Phuket, Patong in particular. Patong has become dirty no safe infastructure or public transport rip off after rip off especially jet skis, touts annoying you everywhere you turn, especially if you are walking up bangala road early evening with your daughters asking you if you want to see ping pong pussy shows. Yes we are quality tourist and not prudes but I ask you is this the image Thailand tourist authority want to sent. We never went out late due to personal safety except one night my daughter and I went to the boxing and got disorientated and for the first time since visiting Thailand (1976) I felt unsafe. I read Phuketwan every day and what I read is so sad and disappointing for this once piece of paradise. Like all readers I thought the DSI then the army would have a real chance at change on Phuket but it seems not so, given from what I read nothing much has changed except the sun beds and umbrellas have gone however the taxi rip offs and jet skis remain. We will not be returning to Phuket perhaps Cha Am and Bangkok however this year we visited Singapore and Fiji both safe, great infastructure and easy to get around. Phuket needs to change or it will die, when will the government learn enough is enough.
Posted by
Jeff Lea
on
December 14, 2014 06:04
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Not only did the rates not increase, they seem to be going down... friends with small to medium sized businesses are suffering 20-40% lower revenues right now... the only hope is NEXT high season... waiting for 2017!
Posted by J on December 12, 2014 20:40