Phuket hotels fighting for their lives as domestic tourism fails to support the island

[scammed]

i think the right thing to do is ban humans from ever leaving

their home, no more food gathering, no more work,

we mustnt let covid19 win

[eezergood]

4 hours ago, Matzzon said:

I don´t understand anything! A week ago it was dancing and joy all around. Here we had 90% full on weekends and about 70% on other days. 

Did they lie about that? 

where was that again? 

[Bender Rodriguez]

can we hope it will cull the scammers, starting at the airport ? 2000 baht for a 300 baht normal fare ?

[Emdog]

Domestic tourists not flocking to Phuket because they know what a rip off it is. International tourists not so much

Seems like even the chickens aren't coming home to roost

[paulikens]

well my sympathy is running out for thai tourism industry, as they are not making hardly any noise to the government, just a whimper. they have to start to put more pressure on the government to open up. more people on here are concerned  about it than the thais. you reap what you sow im afraid 

[jaiyen]

This goes to prove that even the Thai people think Phuket is a sh**hole !  The island has been raped and ruined by developers and hotel operators and greedy people in all walks of life. In the future it will be the quiet island it was 20 years ago.

[Jimbo2014]

Frankly, if you are running a business in the tourist industry, unless you have access to 18 months operating expenses through a loan or through cash flow then your business is dead.  A victim of Covid.  The government seems unable to or unwilling to properly support the sector. 

[Chang_paarp]

A number of year ago an agent was trying to sell me a business in Phuket. I said it was a one trick pony of an area. All it needed was the rebellious southerners to plant one or two bombs and the tourists would stop coming and the economy would collapse. His response was to literally put his index fingers in his ears and say "lah lah lah". Would have been funny if it was not so pathetic.

 

It was a virus not a bomb that proved me right.

[Burma Bill]

PHUKET:-

 

[webfact]

Phuket hotels ‘need immediate help to survive upcoming high season’

By The Nation

 

Anthony Lark, President of the Phuket Hotels Association that represents 78 hotels in Phuket

 

Phuket’s hotel industry is reaching breaking point and the government needs to step in and offer serious economic support to help it survive the upcoming high season, industry leaders said.

 

Despite plans to reopen the island to international travellers under the “Phuket Model”, reality is biting back as hotels are unable to sustain operating viability based on domestic tourism.

 

According to the Airports of Thailand (AOT), arrivals have dropped 65 per cent year on year in the first seven months of this year.

 

What is clear is that the 86,000 rooms in Phuket's registered accommodation establishments cannot realistically break-even or even be cash-flow positive with only domestic demand. This realistically could set the scene for 50,000 job losses in the hotel sector this year if there's no support forth coming or international visitors are not allowed in.

 

One of the green shoots is the government’s Alternative Local State Quarantine (ALSQ) programme, for which more than 60 properties have applied. While this scheme is meant to emulate the ASQ programme in Bangkok, it will not help unless the government ensures the return of international travellers. Though this may take months to materialise.

 

Anthony Lark, president of the 78-property strong Phuket Hotels Association, said: “The math simply doesn’t work with single-digit occupancies being reported. No amount of induced local demand can prevent the continued loss of jobs and rapidly eroding financial crisis for owners and operators. We strongly advocate a safe, pragmatic, and strategic reopening for foreign travellers.”

 

Data recently released by hospitality consulting group C9 Hotelworks also showed that 69 per cent of hotel development plans in the pipeline have been delayed or put on hold.

 

As of the end of 2019, there were 1,758 licensed accommodation establishments on the island, while today incoming projects stand at 58 hotels or just a 19 per cent increase in supply with 16,476 additional rooms planned.

 

“Thailand’s failure to relaunch overseas tourism creates a dangerously perilous scenario for Phuket’s hospitality industry,” said C9 Hotelworks managing director Bill Barnett.

 

“The domino financial impact is not only on hotels and the expanded tourism sector, but it suffocates the development pipeline. This will negatively trigger the erosion of jobs in construction, real estate, retail and ultimately be manifested in consumer credit defaults.

 

The situation is bad, and likely to get worse, as operating hotels remain incur losses day in and day out.”

 

While a stark warning was issued last week by the Bank of Thailand (BOT) over the potential disruption to the tourism-dependent country, Phuket faces an even bigger challenge in the upcoming high season.

 

“Any reopening plan must not only be well planned but has to win the hearts and minds of the Thai people to see any chance of success. While the island may hold the keys to the Kingdom in leading a restoration of tourism, the more critical issue is how hotels can fight for their lives in the current state of limbo,” Barnett said.

 

“Firstly, greater proactive dialogue between the public and private sector has to be undertaken. We can’t simply say we are now in unknown territory forever. Steps must be taken and a single voice formed,” Lark added.

 

“Secondly, the central has to look at interim measures to assist hotels with short-term operating bridge loans to weather the storm and retain jobs. Tourism is a human endeavour and without protecting and nurturing our Thai workforce there will be no recovery.”

 

Source: https://www.nationthailand.com/business/30394185

 

-- © Copyright The Nation Thailand 2020-09-09

 

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[RichardColeman]

19 hours ago, Sharp said:

Boy this is going to a massive 'reset' with very few left in business to reap any possible rewards in regards to new arrivals.

Interesting and testing times ahead for sure for Phuket businesses...

I can see some new Thai version of Crassus rising from the flames of Phuket

[hotchilli]

21 hours ago, Sharp said:

Boy this is going to a massive 'reset' with very few left in business to reap any possible rewards in regards to new arrivals.

Interesting and testing times ahead for sure for Phuket businesses...

All of Thailands resorts are going to feel this for a long time to come.

It's only hope is for Phipats idea of turning them into leper colonies, but that's only if they come.... not if they're open!

End of this year is going to witness many facilities nationwide closed for good.

[ChipButty]

Just this morning we received an email from Booking.com they are in big trouble they need to make redundancy's 

[joecoolfrog]

22 hours ago, Yinn said:

Thankyou Bill Barnett explain.

 

We not know that. 

 

Obvious.

Yes obvious , so what is the government doing to help ?

[TTSIssues]

With all the hospitality staff out of work, rather than just giving them cash handouts, I wish the government would give them some other employment instead, in areas that are badly needed. For example, collecting rubbish, repairing / repainting schools and buildings, making the island look much more attractive than it currently does. 
 

the govt should also use this period to be sorting out infrastructure - build some new water collecting dams, expand and fix the sewerage systems, replace all the hanging wires and bury them underground, install a proper public transport system (a proper bus network like we have in Hong Kong for example)

 

personally I think it’s great that construction has stopped on most of the new hotels which are clearly not needed, and never were. So we have armies of construction workers out of work. For goodness sake use them, and fix the infrastructure during this once in a lifetime opportunity !

 

 

[Kleepanna]

They will never know if a plan can succeed without trying, even a 50% success rate is enough to point out weakness, fix them and try again. FOR THE ENTIRE PLANET a vaccine will NOT eliminate covid completely, its here to stay just like the measles, mumps, chicken pox, etc time to get back to living.

Edited September 8, 2020 by Kleepanna

[joecoolfrog]

22 hours ago, CorpusChristie said:

I don't think I ever heard anyone say "I had a nice holiday in Phukett" 

Many seem to comment on the unfriendly locals and the high prices , Thais and foreigners alike 

I have had many excellent holidays in Phuket going back 20 years.

Transport costs have always been an issue but if thats a deal buster then best one stays in Udon or Soi Bukheuw .

Phuket for sure is too crowded these days ( or was ) but thats true of many parts of Thailand.

For those in the know there are still nice parts of the island where few tourists go , I suspect many of its critics have only seen Bangla road , if indeed they have visited Phuket at all.

[mrwebb8825]

Perhaps the mods can find a way to forward this thread to mister Bill "Daddy Warbucks" Barnett so instead of the typical politician BS he was spewing w/o a single clue as to how it should be accomplished, he can read through and consider some of the excellent ideas put forth here. 

[joecoolfrog]

23 hours ago, PatOngo said:

Phuket has always been over rated!

I think the same of Pattaya but its different strokes for different folks , depends what ones priorities are 

[Crusader]

24 minutes ago, TTSIssues said:

With all the hospitality staff out of work, rather than just giving them cash handouts, I wish the government would give them some other employment instead, in areas that are badly needed. For example, collecting rubbish, repairing / repainting schools and buildings, making the island look much more attractive than it currently does. 
 

the govt should also use this period to be sorting out infrastructure - build some new water collecting dams, expand and fix the sewerage systems, replace all the hanging wires and bury them underground, install a proper public transport system (a proper bus network like we have in Hong Kong for example)

 

personally I think it’s great that construction has stopped on most of the new hotels which are clearly not needed, and never were. So we have armies of construction workers out of work. For goodness sake use them, and fix the infrastructure during this once in a lifetime opportunity !

Great comments...and I totally agree with all.

[ginjag]

If things are that bad, turn the hotel into condos and sell each room at a low price, cash for you and low price for buyers, some of you have had years of big money. Cash in and sell.

[joecoolfrog]

16 hours ago, Bender Rodriguez said:

can we hope it will cull the scammers, starting at the airport ? 2000 baht for a 300 baht normal fare ?

I paid 800 baht at Xmas , airport to karon beach ( about 1 hour ).

Expensive yes but not 2000.

[baansgr]

23 hours ago, vadid said:

I went to Phuket only once, the taxi from the airport took a detour to some place that tried to sell me tours. This was obviously far from unique.  Left a bad taste so I shortened my stay from a week to three days. And have never been back.  Phuket deserves all it gets.

Me, the Mrs and baby were returning to our house in Patong. Even though the Mrs told him we lived there, the taxi driver had to take us to a shop that try pressuring us to book a hotel...what idiots

[PatOngo]

11 minutes ago, joecoolfrog said:

I think the same of Pattaya but its different strokes for different folks , depends what ones priorities are 

Pattaya being the world class family resort, it does differ from Phuket, not sure what the attraction is for Phuket!

[PatOngo]

Just now, baansgr said:

Me, the Mrs and baby were returning to our house in Patong. Even though the Mrs told him we lived there, the taxi driver had to take us to a shop that try pressuring us to book a hotel...what idiots

You do better to take the family to the world class family resort of Pattaya!

[Geoffggi]

4 hours ago, webfact said:

Phuket hotels ‘need immediate help to survive upcoming high season’

Phuket is not special regarding this problem, all of the touristic places Koh Samui, Pattaya, etc also face the reality of surviving the low/high season.

[Chicken George]

Phuket was over rated too expensive and destroying itself by over infestation of tourists. I stopped going there ten years ago for those reasons and more. I feel sorry for the workers and the government should do more to help them. Now is the time to reset and recheck. The place needs cleaning up. Too many with their heads in the trough there for too long. Sustainable tourism is the way forward along with long term tourists. Overbuilt over the years ,eyesores everywhere. Now is the time to clean the place up. 

[ChipButty]

30 minutes ago, baansgr said:

Me, the Mrs and baby were returning to our house in Patong. Even though the Mrs told him we lived there, the taxi driver had to take us to a shop that try pressuring us to book a hotel...what idiots

Thats happened to me a couple of times some shop on the by pass road

[izod10]

 allowing gambling must now be an obvious choice

[Khun Paul]

Oh dear, how sad, not to worry, will weed out the scammers and useless places . Why put up the prices, keep them the same all the year, a bed is a bed after all.