Phuket facing worst tourism crisis in three decades - half of hotel rooms empty in 2020

[teutonian]

A few weeks ago I took a friend from Europe to an out of the way grass hut type of beach restaurant just north of Phuket.  The prices were eyewatering.  A steamed Seabass 900 baht!   I asked for discount.  „Already discount for you“.  
 

It was served raw inside.  Didn’t look super fresh (I usually shop at the markets and cook myself).  He didn’t finish eating it. 
 

So as a tourist I would not come back.  In fact with all the environmental neglect, foreigner abuse, Safety issues and shady politics, I am surprised anyone even bothers coming to Thailand. 

Edited January 3, 2020 by teutonian

[Traubert]

5 minutes ago, ThaiFelix said:

If the TAT is saying numbers are healthy but the accommodation sector is complaining of low occupancy rates, where are they all............alien mass abductions??

AirBnB and similar.

 

Hotels, of which there are more than ever, are half empty. It's the hotels that are moaning.

 

And TV posters, are swirling like vultures. They can't help it. Newtons Third Law is a mystery to them.

[Traubert]

3 minutes ago, teutonian said:

A few weeks ago I took a friend grimmigeres to an out of the way grass hit type of beach restaurant just north of Phuket.  The prices were eyewatering.  A steamed Seabass 900 baht!   I asked for discount.  „Already discount for you“.  
 

It was served raw inside.  Didn’t look super fresh (I usually shop at the markets and cook myself). 
 

So as a tourist I would not come back.  In fact with all the environmental neglect, foreigner abuse, Safety issues and shady politics, I am surprised anyone even bothers coming to Thailand. 

A fish? Good a reason as any I suppose.

 

Need to up the outrage factors.

[SupermarineS6B]

33 minutes ago, ian007 said:

Worst tourism crisis in 3 decades? What about 15 years ago the tsunami... there were almost no tourists in Phuket for a good 2 years. Has this been forgotten?

True, but don't forget they were still making money robbing the dead and pilfering what was left in the appartments.......   Had a friend killed there, couldn't ID her because all her stuff had been nicked from her appartment........  Body, no information........

[Tops]

Been there in April 2012. Anyone wonder why I call it Puke It ?

[Mac98]

I enjoyed Patong a few times, and then the room prices seemed to triple over the space of a few years. For the price of three nights in a decent 3-star resort in Patong I could rent a 4-bdrm house outside Chiang Mai, or a one-bdrm, two-bath, ocean-view condo in Pattaya for a month. Add in the taxi mafia and I have advised anyone asking about Phuket to skip it.

[dallen52]

Suppose in my limited mentality I see a room that was say 1000 baht a night three years ago, being offered at 1200 baht now.

But the 55 baht for £1 on offer then, is now only 38 baht for £1 today. 

Inflation or opportunity prices are only one factor. 

 

Thailand has to relook at the economic downturn and the strength of its currency. 

 

Sadly in this world you can't have your cake and eat it too.

[cardinalblue]

Phuket - where’s that?

[ThomasThBKK]

10 minutes ago, Jack Cook said:

Never any mention of the endless rip off of tourists and the filthy water at the beaches that is nothing like the photo shopped tourist brochures. Smart tourists are going to Vietnam. Thai tourism won’t be revived and by the way it looks they won’t even have a national airline soon. 
Thai people are nice enough but the vast majority are devoid of common sense or planning skills

plenty of nice beaches there, vietnam isn't exactly paradise either, starfish beach on phu quoc has no more starfishes as those low lifes killed them all to sell them dried to tourists.. communism at work...

 

 

That isn't the reason for phukets "decline", its simply massively overbuilt in terms of hotels and too expensive, doesn't take sherlock holmes to notice.

[madmitch]

38 minutes ago, FritsSikkink said:

They are not as AIRbnb has become very big now.

I have mentioned Airbnb elsewhere in the thread and I'd happily replace my term "hotel nights" with "accommodation nights".

[JonnyF]

The main issue is price.

 

People can accept or even laugh about poor quality if it's dirt cheap like it used to be. Rustic charm and all that. When it's more expensive than back home, but the quality/service is absolutely terrible then the joke wears thin pretty quick. 

 

Once you factor in the soi dogs, sneering/violent taxi guys, aggressive immigration, corrupt cops etc. people don't want to return and post negative views on social media. It's been coming for years.

[Pedrogaz]

I have not been to Phuket for several years and never intend to go again unless it changes in a positive way to attract my custom.

If I want to head down south I go to Ao Nang which is cheaper, cleaner and nicer in all respects. 

The ugly mafia that run Phuket might have finally killed the golden goose....ripped off tourists don't become repeat customers. 300 baht for a stinking taxi to take you 200 yards....no thanks. Som nam na.

I couldn't care less, let them go to the dogs.

[Chongalulu]

1 hour ago, ChasingTheSun said:

Tourists arrivals continue to break record highs.

 

i also noticed an increase in tourists on the ground.

 

i guess they are indeed voting with their feet and they agree with me.

Well if you’re daft enough to believe TAT counting every arrival as a tourist and ignore reports from hoteliers and businesses  here then I guess you could also be prone to self delusion too.

[sead]

6 hours ago, keith101 said:

And the powers to be decided to leave the rate at 1.25% allowing the strong baht to stay where it is . Thai like to just wait instead of actually doing something positive because its in their nature to be lazy not active and this goes for my wife as well .

I totally agree. I have never seen so passive people about their country. Its al mai pen rai attitude about everything such as kill rates, corrupt officials etc etc

[Stew41]

5 hours ago, Captain Monday said:

20 years ago I decided to never come to Phuket again because of taxis.

 

 

The Phuket taxi mafia money must flow very high in Bangkok as it is f*&^^&% successful as a high visible and obvious tourist deterrent.

[Olmate]

20 minutes ago, teutonian said:

A few weeks ago I took a friend from Europe to an out of the way grass hut type of beach restaurant just north of Phuket.  The prices were eyewatering.  A steamed Seabass 900 baht!   I asked for discount.  „Already discount for you“.  
 

It was served raw inside.  Didn’t look super fresh (I usually shop at the markets and cook myself).  He didn’t finish eating it. 
 

So as a tourist I would not come back.  In fact with all the environmental neglect, foreigner abuse, Safety issues and shady politics, I am surprised anyone even bothers coming to Thailand. 

Great to see as a host you have it all sorted?????

[Pedrogaz]

In Thailand we have a strange situation. Inflation is rearing its ugly head as the baht has gained strength...this shouldn't happen. I have just come back from the supermarket where I live....I have bought my bacon there for a couple of months now. It has been 126 baht for the past 2 months, now it has gone to 136 baht....10 baht does not sound much but 10/126 is about 8% more....8% for what? Is it better bacon? No, it's the same quantity of the same bacon. I bought the bacon this time, but next time I go it will be 140 baht and I'll decline to purchase.

I used to buy cheese here in Thailand, now I say 'F$$$ it, I am not paying that stupid price for something that costs next to nothing to make'...and this is not because I can't afford it, it is because the feral greed of these retailers sickens me.

[USMC RETIRED 2015]

6 hours ago, Olmate said:

Why is he shocked,didn’t,t he check prior?whats he expecting?where is he from? Maybe he is from third world!

Check where?  TVF??? HAHA, your comment is a joke..I live in Thailand and I am "SHOCKED" everytime I visit Phuket about how expensive everything is...I am just glad my friend owns a nice big house for me and my family to stay in and I always venture to the local thai markets for food and buy drinks at the market...never will I buy anything near the water or in the tourist areas....that's the only way to enjoy the beaches/sunsets etc. without the rip off prices of hotels, food, transportation...

[Bangkok Barry]

4 hours ago, noone223 said:

Lots of Upper & Middle-class Thais have already fled the country in the past years.

Many are leaving on a daily basis, not that they'll ever publish the numbers.

 

Source?

[phiber]

I'm not seeing lower hotel prices on website, am I missing something? Maybe online prices won't change until the very last minute?

[Vacuum]

6 hours ago, webfact said:

Phuket facing worst tourism crisis in three decades - half of hotel rooms empty in 2020 

Too many 'investors' jumped on the bandwagon?

[khunPer]

6 hours ago, webfact said:

But this was the worst. Experts said that the root cause was the strong baht that showed no signs of weakening any time soon. 

 

There was also a massive oversupply of hotel accommodation. For this year it is expected that the hotel industry will see 50% occupancy if they are lucky.

The baht has been as strong before, against Euro in 2015 (less than 35 baht for one Euro), and USD in 2013 (less than 29 baht for one USD) – and I remember that the bath was also very low against Euro linked currencies in 2002 (less than 38 baht for one Euro).

 

Oversupply of hotel accommodation might rater be a problem, together with change from Western tourists to Asian tourists that stay less nights; i.e. where a Western tourist might spend two week, and Asian tourists in said (in the news) to spend 4-5 days only; so even the numbers of arrivals are equal, or even higher, the number of "nites" in hotel is lower.

 

And what about Airbnb, or renting a private villa, do more guests chose that options rather than hotel? 

 

And does anything but a strong baht give the typical Western tourist second thoughts about visiting Thailand?

[Thaidream]

While the   high Baht has been a factor in stifling  tourism, the reality is that it is a combination of many things-

 

-Immigration issues  and surly IO's well publicised via Social Media; Blogs etec have reached the rest of the World . No visitor to Thailand wants to feel they are not welcome; posibly be denied entry; met by unsmiling Immigration Officers and in some cases have their passport flung at them.  The old saying-  that a person who gets ppor service will tell 20 other people  is so true.

 

-Pollution=  the air is polluted in Thailand most of the year from over bulding; a lack of any regulation and a population that will not stop burning it's fields.

 

-Unkempt beaches with dirty water-  Thailand has lost it's reputation as the place to go for pristine resorts.

 

-Thailand is no longer exotic- the powers that be  are gentrifying the country- banning  street food; hassling the entertainment industry  and trying to turn Thailand into Singapore or London.

 

-Local transportation-  high prices- surly local drivers; refusal  to go certain places and refusal to use meters.    Throw in double pricing; local scams and a refusal by the constabulary to stop  all this ninsense.  Tourists are aware and voting with their feet.

 

-Unresonable prices on hotel rooms; food and alcohol- especially wine due to sky high excise tax and greedy  Hotel Managers refusing to lower the prices to compete with other countries. 

 

Until Thailand realizes- it's just not the  Baht- it's everything else that has festered over the years and never been addressed that has killed the Golden Goose.

 

In addition- Thailand is no longer in the Top Ten as a place for retirement- due to all the aforementioned  reasons.  Add in a mandatory insurance requirement that  many prospective retired  cannot even purchase is the final straw.

 

So the result is a lack of tourists and a lack of  a retired base/  Hardly a winning combination.

[Tarteso]

CRY ME A RIVER!

 

I trIed to understand this government, but can NOT.

 

Edited January 3, 2020 by Tarteso

[Richard S]

I don't believe the 1.25 % rate is the problem ..  its the bank savings at 1.8% with no tax  ( foreign money ) money poring in to the banks  ...  in England its 1.3% with tax withholding ...

[racket]

59 minutes ago, alzack said:

They should devalue the baht by say 10--15% Vietnam did it it worked well China has done it, Even England did it under Harold wilson, is not an Einstein thing

They can’t devalue because the currency is floating by which the value of the baht is determined by market forces. Vietnam doesn’t allow their currency to fluctuate, hence they can adjust the value anytime they want. It’s pegged to the usd.

[bkkgriz]

Ah, Phuket. I used to go there all the time. My hangout was Patong, which was always busy, but not overexposed. I loved the scuba diving and the nightlife. But that was circa 2005. It was always a bit expensive, but not terrible. But as the years passed by, it got more and more developed and the quality declined precipitously. Prices kept rising and the fun factor kept declining. Of course, that could be due to me getting older and oversaturated with fun. I went back a couple of years ago over New Years and it was dreadful. It was probably my last trip there. The island has been pretty much destroyed by tourism. There may be some quiet spots left. If there are, I hope they stay that way. 

[Dan123]

6 hours ago, rembody said:

Would help if they could get rid of the taxi mafia, and make it more affordable to get around

Absolutely, I dont want to rent a vehicle, and like a beer, basically the inexplicable lack of affordable transport options makes the place hell, it's better in boondocks Isaan transport wise, cheaper in BKK

taxi mob can rot AFAIconcerned

 

[TTSIssues]

1 hour ago, khunpa said:

Yeah, it is not rocket science.

 

BUT those changes would require someone to admit mistakes has been made. This would result in someone having to "lose face" and that is simply not an option!!! 

So best to just keep things as they are........pray, buy an amulet and hope for the best.

So true - so true 

 

 

[TTSIssues]

6 minutes ago, racket said:

They can’t devalue because the currency is floating by which the value of the baht is determined by market forces. Vietnam doesn’t allow their currency to fluctuate, hence they can adjust the value anytime they want. It’s pegged to the usd.

Of course they can! That’s what governments do all the time. Lower interest rates and manage foreign currency reserves and the baht will devalue.