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

[ChipButty]

The last low season was bad enough and I dont see it getting any better this year, there are lots of stats you can read from so called experts (not TAT) 

Booking.com cancellation rate is 55% 

Airbnb occupancy rates are of last week when I last looked 35%

Make me laugh when Thai's are asking whats happening if you tell them they dont believe you

I also think the Chinese are not repeat visitors

[Sonyboy]

On 1/3/2020 at 10:14 AM, madmitch said:

I've been saying for years that hotel nights are a much better indicator of tourism health rather than the arrival figures upon which TAT and the Tourism Ministry are always quoting.

 

 

True,and so have many others,one 'could' think they are massaging the figures or useing Di Abbotts type of maths.

[Jiggo]

Holiday destinations come and go, and Phuket has gone, used to be full of Aussies, yet cant see many coming this year. 

[chrisandsu]

1 hour ago, Nook225 said:

Their business investments will die once and forever. How would they borrow free money? That's what people on top don't want; who cares that cartoon-tattooed old farts from New Castle can't afford San Muegel anymore and is forced to have Chang? - Noone. Big people don't make money on that in Thailand. 

But they will care when they can’t export anything because the prices are just not competitive anymore . Outside investment becomes impossible if there is no value to be had . I know a lady who works in the pharmaceutical supply industry and they are on their ass big time . If countries had any sense they would put tarrifs on all Thai made products and see if they like it . 

[Dice Man]

On 1/3/2020 at 10:21 AM, 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!

??????????????????????

[clarky cat]

2 hours ago, Jiggo said:

Holiday destinations come and go, and Phuket has gone, used to be full of Aussies, yet cant see many coming this year. 

Yep

 

The Russians can have it, change every sign post and menu from English to Russian 

 

 

[xylophone]

17 hours ago, Inn Between said:

Phuket business people should be just fine. They've been fleecing the public for decades and must surely have oodles of cash stashed away for these inevitable rainy days when they've finally priced themselves beyond what's competitive. They can just enjoy the down time and treat it as that nice long vacation they deserve for all their hard work over many years, digging as deep into tourist's pockets as they can

It might sound good in theory, however the Thais and for that matter, the Burmese, who work in small to medium sized businesses are paid a pittance and are barely able to survive.

 

Go up one level and the Thais who rent the shops and businesses that employ these people and sell whatever they sell, are also not much better off, because they are being screwed from both sides, the fact that the landlords put the rents up when they feel like it, and the fact that the tourists are not spending anywhere near what they used to.

 

It's the landlords and property owners who perhaps have the money stashed away, not the people you see facing the everyday public and tourists. And those are the people for whom I feel sorry, because they are "between a rock and a hard place" to quote an old Antipodean saying.

[CGW]

25 minutes ago, clarky cat said:

The Russians can have it, change every sign post and menu from English to Russian 

& Chinese! just used the Thai post tracking website, they have "updated" the home page, it now includes Chinese language option!

[Orton Rd]

20 hours ago, Olmate said:

No wonder Yinn thought you were so special!????????‍♀️

What happened to her I wonder?

[ubonr1971]

Only the scummiest thais live in Phuket with their aggressive attitudes. Not surprising no one wants to visit that place

[grumpy 4680]

      As an expat living here in Thailand, It would be nice to get away for a while down by the coast, but with the high baht exchange rate, and EXTRA immigration hassle, why bother ?????

[kiwikeith]

On 1/3/2020 at 4:16 PM, chrisandsu said:

As I said on another thread my brother is a first time visitor to Thailand and Phuket and he is shocked at how expensive the place is .

It costs 20BHt for a small bottle of beer from the wholesalers in NZ, here about the same from Macro, bar prices are cheap here. Food is over the top, if you buy from supermarkets.

Petrol is not bad compared to Nz. What the big killer is ,is the exchange rate.

It is far cheaper to live in the Philippines.

All I hear lately from expats is complaints , mainly the exchange rates, and price of living here now, many are planning to leave for Vietnam and Philippines.   

The Tm30 and visa requirements are worrying everyone and on top of that the roads seem to fuller of idiots speeding through the small sois on noisy bikes, and hoones driving modified cars like lunatics everywhere.

 

The place is now becoming the wild wild west.

[tlandtday]

On 1/3/2020 at 4:17 PM, Somtamnication said:

Thais have never reduced room prices to increase sales. After the tsunami and SARS, prices actually went up! 

Not entirely true.  I often go to phuket in the summer months because rooms are one half of high season prices.

[Inn Between]

6 hours ago, xylophone said:

It might sound good in theory, however the Thais and for that matter, the Burmese, who work in small to medium sized businesses are paid a pittance and are barely able to survive.

 

Go up one level and the Thais who rent the shops and businesses that employ these people and sell whatever they sell, are also not much better off, because they are being screwed from both sides, the fact that the landlords put the rents up when they feel like it, and the fact that the tourists are not spending anywhere near what they used to.

 

It's the landlords and property owners who perhaps have the money stashed away, not the people you see facing the everyday public and tourists. And those are the people for whom I feel sorry, because they are "between a rock and a hard place" to quote an old Antipodean saying.

Oh, I was being sarcastic about having money stashed away. Saving for the future is hardly a Thai trait from what I've seen and known. And as for reading anything into my post asserting that the peons would have cash stashed away from fleecing the public is mysterious to me as they'd very obviously not be in position to do so.

 

But a post reminding us it will truly be the peon migrant workers who will likely suffer the most isn't a bad thing, so even if the sarcasm was missed and and some parts misinterpreted, your inadvertent reminder to perhaps drop the sarcasm and feel some compassion for the real victims of any economic strife Phuket may suffer isn't a bad thing at all.  

[Kopitiam]

1 hour ago, tlandtday said:

Not entirely true.  I often go to phuket in the summer months because rooms are one half of high season prices.

Not entirely true.  Room prices in the summer months are normal price.  Prices are increased in the high season.

[stevenl]

8 minutes ago, Kopitiam said:

Not entirely true.  Room prices in the summer months are normal price.  Prices are increased in the high season.

Totally not true, all year summer months prices would for many businesses not be enough to survive.

[CharlieH]

(Havnt read all the previous pages)

 

Personally I dont agree with "seasonal" prices, if the commodity/service or whatever doesnt change the price shouldnt either just because of the date.(IMHO)

[yogi100]

On 1/3/2020 at 10:38 AM, rembody said:

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

Everyone I know who's been to Phuket complains about the price of everything especially the taxis.

 

Ripping visitors off is a sure fire way to ensure that they'll never return.

[yogi100]

10 hours ago, bbi1 said:

They can thank all the rogue IO offices at the airports who are turning away tourists who spend money in the country every year. The ones who stay for a long time with the correct tourist visas.

It's not normally the ones with correct visas who get turned away. Unless it's a particular IO having a bad time of the month.

[kingdong]

On 1/3/2020 at 3:21 AM, 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!

No he came to a third world country and didn,t expect it to be more expensive than a 1st world country,least that's my experience and I live in london.

[GeorgeCross]

On 1/3/2020 at 3:14 PM, British Bulldog said:

Good clean Hotels at reasonable charges, smiling staff (who can speak English), a reasonably priced Mini Bar and pool side bar to help push profits alone and you'll soon be full turning the clients away, once some of the sites like Lonely Planet and Trip Advisor get onto your 'good deal' hotel, it will be full in no time ... higher turnover, slightly less profit than previously, but consistent long tearm profits as you'll be the only Hotel at 95% occupancy !

 

in principle this seems idyllic and oh so easy, but there is a catch. for this to work the hotels would need to own the land they are built on otherwise they'll have little to no say in the prices they can charge. even if by some small chance they were not already paying some huge lease, come next renewal, and with 95% occupancy, expect that lease to sky rocket. can't be having some foreigners making lots of money money on their land you know! its the thai way ????

[kingdong]

3 minutes ago, GeorgeCross said:

 

in principle this seems idyllic and oh so easy, but there is a catch. for this to work the hotels would need to own the land they are built on otherwise they'll have little to no say in the prices they can charge. even if by some small chance they were not already paying some huge lease, come next renewal, and with 95% occupancy, expect that lease to sky rocket. can't be having some foreigners making lots of money money on their land you know! its the thai way ????

So they,'ll be an oversupply of rooms and no punters?

[tomacht8]

What struck me about Phuket in particular, is that nightlife and entertainment are particularly expensive compared to Koh Samui, Pattaya, Hua Hin or Bangkok.

[Kopitiam]

3 hours ago, stevenl said:

Totally not true, all year summer months prices would for many businesses not be enough to survive.

Nowhere did I said all year summer months prices and it is a fact that room prices are increased when the high season comes.

[kingdong]

7 hours ago, GeorgeCross said:

. can't be having some foreigners making lots of money money on their land you know! its the thai way ????

Didn,t they have a similar scenario in1997?over valued baht imploding on itself.There's a big recession in the post.

[stevenl]

6 hours ago, Kopitiam said:

Nowhere did I said all year summer months prices and it is a fact that room prices are increased when the high season comes.

Again no, prices are decreased in the summer months.

[ChipButty]

19 hours ago, Jiggo said:

Holiday destinations come and go, and Phuket has gone, used to be full of Aussies, yet cant see many coming this year. 

Low season used to get loads of Aussies maybe it's cheaper to go to Bali and only 3 hours from Perth

[ChipButty]

9 hours ago, GeorgeCross said:

 

in principle this seems idyllic and oh so easy, but there is a catch. for this to work the hotels would need to own the land 

That is exactly whats killing business the rent is high

[GeorgeCross]

10 hours ago, kingdong said:

So they,'ll be an oversupply of rooms and no punters?

i believe that is what the original post says, yes

[GeorgeCross]

3 hours ago, kingdong said:

Didn,t they have a similar scenario in1997?over valued baht imploding on itself.There's a big recession in the post.

https://www.thebalance.com/what-was-the-asian-financial-crisis-1978997