How Is Your Business Doing This High Season?

[Ulysses G.]

Both Chiang Mai and Pattaya seem to be having a slower High Season this year. How are you folks in Phuket doing from you and your friends perspective?

[LivinginKata]

Excellent .... over 99% occupancy, and still get phone/email enquiries every day, even though we have not actively advertised this high season. Out of the blue a guest advised leaving 12 Jan. At 09.00 I hung the old FOR RENT sign out, as I was hanging it a guy passed by, looked at the apartment, and took it for long term contract. As far as I know there are few quality apartments in Patong at a sensible price right now.

[chiang mai]

Both Chiang Mai and Pattaya seem to be having a slower High Season this year. How are you folks in Phuket doing from you and your friends perspective?

UG, Phuket Pie House is having a very successful and satisfying high season here in Patong and the rate of new customer take on is far better than I would have expected or imagined. Having said that, this is our first year in business so .....! Bottom line is that there are lots of customers around and people are spending money.

[chiang mai]

Excellent .... over 99% occupancy, and still get phone/email enquiries every day, even though we have not actively advertised this high season. Out of the blue a guest advised leaving 12 Jan. At 09.00 I hung the old FOR RENT sign out, as I was hanging it a guy passed by, looked at the apartment, and took it for long term contract. As far as I know there are few quality apartments in Patong at a sensible price right now.

Your timing is, as always excellent - sorry I missed you today, how were the pies?

[Ulysses G.]

Both Chiang Mai and Pattaya seem to be having a slower High Season this year. How are you folks in Phuket doing from you and your friends perspective?

UG, Phuket Pie House is having a very successful and satisfying high season here in Patong and the rate of new customer take on is far better than I would have expected or imagined. Having said that, this is our first year in business so .....! Bottom line is that there are lots of customers around and people are spending money.

If it is your first year and you are doing well, that is a good sign.

I haven't been to Phuket for many years because it is so much more expensive than other places in Thailand, but I used to love it.

Why do you people think that it keeps doing so well despite the very high prices?

[LivinginKata]

Your timing is, as always excellent - sorry I missed you today, how were the pies?

Dare not comment as no doubt I will be jumped on from a great height by a select band of members for continuing to support your small business....

Best you ask me this sort of question by PM, I'll send a PM now.

[LivinginKata]

If it is your first year and you are doing well, that is a good sign.

I haven't been to Phuket for many years because it is so much more expensive than other places in Thailand, but I used to love it.

Why do you people think that it keeps doing so well despite the very high prices?

IMHO because of a good number of quality beaches, good water quality (but not Patong), a great variety of activities, a huge variety of accomodations for all budgets, and much more. Having worldwide name recognition helps too ....

[thaigerd]

I am working for a BKK based company here in HKT, we are doing about 25% more than last year.

Gerd

[chiang mai]

Both Chiang Mai and Pattaya seem to be having a slower High Season this year. How are you folks in Phuket doing from you and your friends perspective?

UG, Phuket Pie House is having a very successful and satisfying high season here in Patong and the rate of new customer take on is far better than I would have expected or imagined. Having said that, this is our first year in business so .....! Bottom line is that there are lots of customers around and people are spending money.

If it is your first year and you are doing well, that is a good sign.

I haven't been to Phuket for many years because it is so much more expensive than other places in Thailand, but I used to love it.

Why do you people think that it keeps doing so well despite the very high prices?

Phuket is really very pleasant UG, for me personally it's a very satisfying place to live - the beaches and the bays can be very calming and enjoyable, I love watching the weather conditions change and seeing brief storms roll in over the water. I also enjoy the local people here and the mix of southern influence combined with a more tourist orientated mentality - makes it work for for me. Expensive: sure land is expensive when compared to the North but good deals can be found and I'm looking. As for other expense items we all incur; depends where you shop and where you go for entertainment, sensible prices and exorbitant prices can be found in most popular destinations but it's not difficult to live very well in Phuket at a similar cost level as most other places in Thailand, excepting rent/ real estate costs of course. Have to say that the cost and availability of airfare from Phuket to anywhere else becomes difficult at this time of the year, a few days ago it was a three day wait for any flight to BKK on any airline and of course, airlines such as Thai make it more it expensive at this time of the year. I cannot see tourists not wanting to come back to Phuket or indeed visit for the first time because of its cache and it's genuine appeal so I would guess that of all the places in Thailand to visit, Phuket must remain very strong for the foreseeable future.

[madmitch]

Both Chiang Mai and Pattaya seem to be having a slower High Season this year. How are you folks in Phuket doing from you and your friends perspective?

Definitely quieter here in Karon. Last year we were turning people away from two guesthouses. This year we only have one and although it has been pretty full it's not as good as last year. Other local businesses say the same.

[chiang mai]

Both Chiang Mai and Pattaya seem to be having a slower High Season this year. How are you folks in Phuket doing from you and your friends perspective?

Definitely quieter here in Karon. Last year we were turning people away from two guesthouses. This year we only have one and although it has been pretty full it's not as good as last year. Other local businesses say the same.

Why do you think that is, Karon seems to be heaving every time I drive down there to the Arcadia gym?

[LivinLOS]

Buddy just sold a bar on Soi Dontan.. 2006's november he took 630k in trade.. This last years november he took 280k in trade.. He sold out in Dec.

I think the bar scene in Patong is changing fast and the influx of couples and even singles and groups of women travellers is really hitting some of the bars bottom line from the kind of high spending bell ringing guys who wouldnt care about dropping 10 - 20k in a night.. Those guys are thin on the ground this year. This is echo'ed from almost every bar owner I know, there plenty of bodies in town, theres lots of people, but they dont spend the same way.

That doesnt mean town is not doing well or even better, only that segment of the market isnt doing better.

[LivinginKata]

I agree with LOS, the bar scene has changed dramatically since I first arrive here 12 years ago. The tourist growth has been mostly in couples and families, and people from other Asian countries who don't go near the bars.

Another factor is the huge increase in new build bar & guesthouse numbers, year on year. Just far too many businesses trying to get a slice of a shrinking cake, from the point of view of single tourists (mostly guys) looking for cheap wine woman & song, plus a cheap place to stay.

Walk into any area with many bars, all much the same, and you'll find one bar really busy, with a neighbouring 9 bars doing nothing at all. So it's a very mixed picture depending which business owner you talk to.

[thaigerd]

Buddy just sold a bar on Soi Dontan.. 2006's november he took 630k in trade.. This last years november he took 280k in trade.. He sold out in Dec.

I think the bar scene in Patong is changing fast and the influx of couples and even singles and groups of women travellers is really hitting some of the bars bottom line from the kind of high spending bell ringing guys who wouldnt care about dropping 10 - 20k in a night.. Those guys are thin on the ground this year. This is echo'ed from almost every bar owner I know, there plenty of bodies in town, theres lots of people, but they dont spend the same way.

That doesnt mean town is not doing well or even better, only that segment of the market isnt doing better.

Agreed!

My personal fiction:

In 2-3 years there will be no Bangla Road anymore, this street will be converted into a boulevard with shops like: Hermes, real tailors from London, Michelin star restaurants, Ferrari and RR dealers...........................and our red friends(tuk tuks) starting at around 500.-Baht for a short trip.

Gerd

[Kimera]

Buddy just sold a bar on Soi Dontan.. 2006's november he took 630k in trade.. This last years november he took 280k in trade.. He sold out in Dec.

I think the bar scene in Patong is changing fast and the influx of couples and even singles and groups of women travellers is really hitting some of the bars bottom line from the kind of high spending bell ringing guys who wouldnt care about dropping 10 - 20k in a night.. Those guys are thin on the ground this year. This is echo'ed from almost every bar owner I know, there plenty of bodies in town, theres lots of people, but they dont spend the same way.

That doesnt mean town is not doing well or even better, only that segment of the market isnt doing better.

Agreed!

My personal fiction:

In 2-3 years there will be no Bangla Road anymore, this street will be converted into a boulevard with shops like: Hermes, real tailors from London, Michelin star restaurants, Ferrari and RR dealers...........................and our red friends(tuk tuks) starting at around 500.-Baht for a short trip.

Gerd

The change over the last three years is very noticable, Now I see many more couples and familys, they walk down Bangla Rd with their children on their shoulders, stand and watch. Yes I to think the end is near

[seppl04]

Buddy just sold a bar on Soi Dontan.. 2006's november he took 630k in trade.. This last years november he took 280k in trade.. He sold out in Dec.

I think the bar scene in Patong is changing fast and the influx of couples and even singles and groups of women travellers is really hitting some of the bars bottom line from the kind of high spending bell ringing guys who wouldnt care about dropping 10 - 20k in a night.. Those guys are thin on the ground this year. This is echo'ed from almost every bar owner I know, there plenty of bodies in town, theres lots of people, but they dont spend the same way.

That doesnt mean town is not doing well or even better, only that segment of the market isnt doing better.

Agreed!

My personal fiction:

In 2-3 years there will be no Bangla Road anymore, this street will be converted into a boulevard with shops like: Hermes, real tailors from London, Michelin star restaurants, Ferrari and RR dealers...........................and our red friends(tuk tuks) starting at around 500.-Baht for a short trip.

Gerd

where will you find then your shortime adventure ????

[seppl04]

November and December much better than last year.

January worse than last year

All in All a good high season

[LivinLOS]

Buddy just sold a bar on Soi Dontan.. 2006's november he took 630k in trade.. This last years november he took 280k in trade.. He sold out in Dec.

I think the bar scene in Patong is changing fast and the influx of couples and even singles and groups of women travellers is really hitting some of the bars bottom line from the kind of high spending bell ringing guys who wouldnt care about dropping 10 - 20k in a night.. Those guys are thin on the ground this year. This is echo'ed from almost every bar owner I know, there plenty of bodies in town, theres lots of people, but they dont spend the same way.

That doesnt mean town is not doing well or even better, only that segment of the market isnt doing better.

Agreed!

My personal fiction:

In 2-3 years there will be no Bangla Road anymore, this street will be converted into a boulevard with shops like: Hermes, real tailors from London, Michelin star restaurants, Ferrari and RR dealers...........................and our red friends(tuk tuks) starting at around 500.-Baht for a short trip.

Gerd

Discussion with the lease holder of Tiger says that all the naughty nightlife of Patong will be shifted east of Rat U thit in 5 years with the West side of Rat U Thit being tourist zone.. Of course there will be bars discos and girls but less in your face etc.. The beach side of Rat U Thit will be the acceptable face.

You may note he has just opened the 'chang bar' complex thing on sansabai on the jungceylon back rd !!!

I tend to think that its an overstatement that it will be completely sanitized (and I also think it would not be financially beneficial to do so) but he claims thats what the towns power players see in the future.

[LivinLOS]

Another point I could make is the price movements..

Leases are now insane.. Any small beer bar at the back of a soi being asked 3m or so (and even Thais paying !!).. Under tiger a gin and tonic can set you back 180 baht.. Lady drinks often in excess of 250 baht.. I have head of 1000 baht bar fines etc..

There is a point when tourists opt to spend it elsewhere or look to scale back on thier spending... The attitude of simply raise prices the farang will pay has a limit.. I know inflation happens everywhere and some price rises are to be expected but also think Patong is spiralling up at a rampant rate.

[LivinginKata]

I know quite a few long stay guys who have had it with high bar prices. Now they drink at small watering holes along Nanai Road (and there are now plenty plenty to choose from). Draft Chang as low as 40 baht all day. I use a place that charges 70 baht for a big glass of wine. It's not that we are all trying to be cheap charlies, just that we don't want to pay tourist prices. I realise that the more central bars are paying big key & rent money and must charge higher prices just to make ends meet, and they have my sympathy. I'm often asked my opinion about business opportunities, and I never recommend leasing a bar or small guesthouse. You will just be working for the owner of the property with littel let after pay monthly rent. If you have the money (lots) to buy freehold then you won't go wrong.

[huggybear]

Both Chiang Mai and Pattaya seem to be having a slower High Season this year. How are you folks in Phuket doing from you and your friends perspective?

Business in 2007, up 70%

Business since 2005, doubled.

Direct flights cancelled after the Tsunami have resumed. We now have new charter flights coming direct to Phuket from different parts of Sweden, also Estonia, Finland, Russia.

The changing demographic of the tourists coming to Phuket is definitely changing (better for me). In 1990 I would fly from BKK to Phuket with a planeload of single guys heading for Bangla. Two months ago I'm on a plane with couples and kids.

Agreed that too many hotel rooms is hurting the smaller Inns.

[LivinLOS]

Would help if those that say things are good or bad said what segment of the market they are ?? Bar / Accommodation / Restaurant / Dive Etc.. And what type / nationality of tourist makes up their customer base.

[Felt 35]

Kata Beach/ Phuket Town

My landlord, which own and manage (family owned) a 150 room hotel in Kata and two smaller budget hotels in town told me a week ago that the business was slower than usual so far this tourist season.

[Super Hans]

Buddy just sold a bar on Soi Dontan.. 2006's november he took 630k in trade.. This last years november he took 280k in trade.. He sold out in Dec.

I think the bar scene in Patong is changing fast and the influx of couples and even singles and groups of women travellers is really hitting some of the bars bottom line from the kind of high spending bell ringing guys who wouldnt care about dropping 10 - 20k in a night.. Those guys are thin on the ground this year. This is echo'ed from almost every bar owner I know, there plenty of bodies in town, theres lots of people, but they dont spend the same way.

That doesnt mean town is not doing well or even better, only that segment of the market isnt doing better.

Agreed!

My personal fiction:

In 2-3 years there will be no Bangla Road anymore, this street will be converted into a boulevard with shops like: Hermes, real tailors from London, Michelin star restaurants, Ferrari and RR dealers...........................and our red friends(tuk tuks) starting at around 500.-Baht for a short trip.

Gerd

Discussion with the lease holder of Tiger says that all the naughty nightlife of Patong will be shifted east of Rat U thit in 5 years with the West side of Rat U Thit being tourist zone.. Of course there will be bars discos and girls but less in your face etc.. The beach side of Rat U Thit will be the acceptable face.

You may note he has just opened the 'chang bar' complex thing on sansabai on the jungceylon back rd !!!

I tend to think that its an overstatement that it will be completely sanitized (and I also think it would not be financially beneficial to do so) but he claims thats what the towns power players see in the future.

Who exactly are the power players? Serious question.

[LivinLOS]

Pian obviously.. Theres just 2 or 3 families that own the land under soi croc, soi easy, soi tiger, (dont know who owns soi lion or who eric leases it off)..

Then after that top tier who are less hands on and more lease it out.. theres the key leaseholders for the 10 year stretches.. Somewhere down the list Chirat (safari) would appear..

Basically look at the election cards.. Current and future mayor, deputy mayor, and key positions all go to those in the top tiers. Then they swap and hand it back to each other the time after.

[Super Hans]

Viva la revolution.

[blizzard]

ladydrinks 250 baht?

[arco27]

thank god it is quiet here in Rawai, I miss Patong sometimes, but there is no way I go there between November and March. The booked out BKK flights are a pest, I had to take 12go before xmas. I hope you all make tons of money so that we can return to a more peaceful pace during the green season.

[Sir Burr]

The rest of Thailand has a "rainy season", yet, here in Phuket we have a "green season" (rolls eyes).

[GraemeF]

Agreed!

My personal fiction:

In 2-3 years there will be no Bangla Road anymore, this street will be converted into a boulevard with shops like: Hermes, real tailors from London, Michelin star restaurants, Ferrari and RR dealers...........................and our red friends(tuk tuks) starting at around 500.-Baht for a short trip.

Gerd

not that i'm am into designer shops, but the end of patong as we know it sounds wonderful !