Phuket hotels under pressure to perform

By Bill Barnett

 

 

by Bill Barnett C9 Hotelworks

 

Despite registering a record high 9 million passenger arrivals at the island’s gateway international airport in 2018, performance data is indicating that a slowdown in its double-digit growth rates over the past few years is on the horizon for Thailand’s resort destination of Phuket.

 

While airport arrivals grew 8% year-on-year, the gains posted were at their lowest level since 2015 according to consulting group C9 Hotelworks newly released Phuket Hotel Market Update.

 

As the first half of 2018 saw arrivals soar by 17% versus the same period in 2017, the second half of the year was marred by the Chinese boat accident which decelerated momentum and by the end of the year annualized hotel demand had declined by 4%.

 

Full story: https://thethaiger.com/news/business/phuket-hotels-under-pressure-to-perform

 

 

-- © Copyright The Thaiger 2019-03-08

Ever growing tourist numbers yet hotels are empty, go figure.

I have from a reliable source that April 37% down for booking inquiries not looking good 

I hear Air BnB is doing great......But its illegal in Thailand....lol

Great news!

Phuket's infrastructure, water and sewage disposal can't handle the current visitor numbers.

3 minutes ago, ChipButty said:

I have from a reliable source that April 37% down for booking inquiries not looking good 

What would be a "booking enquiry"? I can go on 3-4 different websites and see prices and availability for multiple hotels, are there 37% less people doing that ?

 

Ever growing tourist numbers yet hotels are empty, go figure.

 

Hotels are not empty but people are staying for shorter periods, mainly due to shorter length of stay of mainland Chinese guests, hence the increased number of arrivals do not translate into more room nights.

 

 

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19 minutes ago, Peterw42 said:

What would be a "booking enquiry"? I can go on 3-4 different websites and see prices and availability for multiple hotels, are there 37% less people doing that ?

 

So it says

6 hours ago, RotBenz8888 said:

Ever growing tourist numbers yet hotels are empty, go figure.

Easily explainable. European/Western tourist numbers who stay on average 3-4 weeks are down significantly. Chinese tourists who come on 4-day junkets on average are up significantly. The TAT only likes to spin the story that paints them in a good light, "tourist numbers arrivals up". Chinese tourists do spend slightly more per day than Western tourists, as they tour temples, islands, and even walking street. But the amount of their total spend in Thailand on a per tourist basis is much lower because their trips are so short. One western tourist is worth about seven Chinese tourists, but that fact is lost on the TAT as it doesn't help with their "look how good a job we are doing" spin. Of course, the hotel occupancy rate reflects reality.

One might think any business would be "under pressure to perform".

12 hours ago, RotBenz8888 said:

Ever growing tourist numbers yet hotels are empty, go figure.

Tourists are changing, relative less Westerners that used to stay a couple of weeks, and more Asians and especially Chinese that stay for about 5 days only; i.e. mote tourists in numbers but less nites in the hotels.

 

Furthermore Westerners travelling together, or families, begin to look for villas to rent, including Airbnb, rather than hotel accommodation, and at the same time more hotel keys are available, and a couple of thousands more each future year according to the graphics in the article, so a relative decrease in percentage occupation should not be a surprise.

13 hours ago, RotBenz8888 said:

Ever growing tourist numbers yet hotels are empty, go figure.

Judging after the traffic they are in the minivans????

Joe, the most sensible post this week,,, well said.

The Government & local council (Governors) have been siphoning off all the monies all these

years so the place is falling to rack & ruin, so of course the place stinks & real tourists have said "enough"

The tunnel is a classic example of what should have happened 24 years ago but oh no

too expensive but the Governor gets a new car every year

On 3/8/2019 at 1:54 PM, Colonel Klink said:

 

Hotels are not empty but people are staying for shorter periods, mainly due to shorter length of stay of mainland Chinese guests, hence the increased number of arrivals do not translate into more room nights.

 

 

Sent from my iPhone using Thailand Forum - Thaivisa mobile app

Correct.  The same rooms, in the same establishment, probably Chinese owned, being used 365 days a year, and most likely with 5 or more people in each room.