Phuket's foreign arrivals by air rebounded in July, with more than 379,000 travellers recorded as the impact of the Middle East conflict eased, according to Travel Link data.

The recovery offers encouragement for the island's tourism businesses ahead of the fourth-quarter high season. However, hotel operators say weaker consumer spending, rising competition and growing room supply will limit both occupancy and price increases.

Somjai Tungkook, vice-president of the Thai Hotels Association's southern chapter, said tourists had begun returning as international flights resumed during the third quarter. Phuket normally receives significant inbound passenger numbers from China, Australia and the Middle East.

Major markets including China, Russia, Saudi Arabia and Israel have improved, she said, although some markets, such as South Korea, remain stagnant.

Hotel occupancy may fall below 60%

Despite the stronger July figures, Ms Somjai said average hotel occupancy across Phuket could fall to below 60% in the third quarter, compared with 60% in the same period last year.

She said expanding hotel supply in recent years, including illegal properties, could mean hotels do not fully benefit from the return in visitors. Operators are also reluctant to raise room rates, as higher airfares and travel costs could discourage tourists from spending during their trips.

Ms Somjai said hotels were shifting towards offering more value-added services to attract customers.

High season outlook depends on Middle East tensions

Thanawat Ongcharoen, vice-president of the Phuket Tourist Association, said the island's tourism sector should steadily recover during the fourth-quarter high season if there is no severe escalation in the Middle East.

He said the final quarter should perform as strongly as last year, supported by robust demand from long-haul tourists. Yet hotels are unlikely to raise room rates by as much as double digits because of continuing global economic uncertainty.

Room-rate growth is likely to remain at only 5% year-on-year, in line with inflation and rising costs, he said.

Mr Thanawat also pointed to Thailand's revised visa-free regulations as a challenge for some markets, including Uzbekistan, which had emerged under the previous 60-day visa-free scheme.

From September 15, Uzbek tourists must apply for tourist visas in advance, a change that could affect travellers who had already booked trips in previous months. The Phuket Tourist Association plans to raise the matter with the government and request easier visa requirements for that market.

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5 September 2026

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Tourism is recovering, but still the hotels complain... If the illegal hotels are a problem, why are these not closed?? Foreigners who work illegal are doomed too. And of course the hotels are too expensive. lower occupancy will raise the prices because the profits must stay the same or higher, with a result that people book less....and 5% rate growing is a bit too much as the inflation is very low according to Thailand. Maybe they should not raise for a year and give some extra promotions to attrack guests...with only complaining and raised prices nothing will change

My daughter is here at the moment with her family, Husband and two small kids, She is staying in a 5 star hotel here in Nai Harm, let me tell you it's dead, we were the only ones in the restaurant last night, and it's been like that every night this week some nights there has been another family.

During the day only a couple of families around the pool and thats it, Slightly busier for breakfast, It's been like that for the past 10 days,

My wife and I drive there in the evenings all the way along Rawai and Nai Harn towards the beach then back at around 8 to 8-30 only one or two people dotted around, as we can see into the restaurants along the road, we pass a couple of bars the girls are almost naked standing outside and still no customers. Only one place ever seems busy and that's Mr Alli's, we did go in there for dinner the other night and it was busy, All these people must be living on 7/11 food,

Phuket is as we all know overpriced and overcrowded. The beaches at this time of the year are downright dangerous for swimming. Now we have the reduction time of visa on a arrival, that will have an effect too. Plus the Crack down on foreign owned businesses, houses bought this way will most likely be next.