Lots Of Tourists In Phuket, But They Aren’t Spending Much

[webfact]

Lots of tourists in Phuket, but they aren't spending much

The scene at Karon Beach at the start of the 2009-2010 high season. File photo.

PHUKET TOWN: Arrival figures during this high season remain high, but tourists visiting Phuket seem to be spending less, industry insiders say.

Bhuritt Maswongsa, vice-president of the Phuket Tourist Association (PTA), said that 'per head' expenditure seems to be much lower than in the 2007-2008 high season, the last time Phuket enjoyed a normal high season – the 2008-2009 high season was largely negated by crippling airport closures.

Australia and Europe continue to be key source countries during the high season, with the Russian market also performing well, he said.

The industry has also benefited from new direct charter flights from the Chinese cities of Guangzhou and Shanghai, while there are also 24 direct flights to Phuket from Hong Kong every week, he said.

Mr Bhuritt said the overall composition of inbound tourist figures has shifted, with regional tourists now making up about 50 percent of arrivals, many on package tours.

Europe, once the 'bread-and-butter' market, has also seen a shift towards more package tourists and independent visitors with limited budgets, he said.

"More tourists who fly in from Europe are now arriving on package tours. Because of the economic situation there, they are spending much less than they used to," he said.

Hotel occupancy rates are currently about 90 percent overall, based on combined statistics from the PTA and Thai Hotel Association Southern Chapter from over 700 accommodation establishments on the island, he said.

Advance bookings indicate occupancy rates should remain high through to the end of February, but all bets are off after that, Mr Bhuritt said.

"It is difficult to know what will happen from March onwards, but it doesn't look good."

People tend to book less far in advance and reservations are coming in very slowly after February, he said.

Individual bar owners in Patong are in general agreement that tourists are watching their purse strings more than in years past.

Vichien Plachumpan, who runs the Crows Nest bar on Soi Sea Dragon said, "There are a lot of customers, but they aren't spending nearly as much."

Income at his bar is down about 40 percent year-on-year, he said.

Somphet Moosophon, who runs a pub on Soi Crocodile and is a former president of the Phuket Entertainment Business Association, estimated his revenue was down about 30 to 40 percent year-on-year.

He said there are more tourists from Arab speaking countries and the subcontinent visiting Soi Crocodile, which is well known for its scores of go-go dancing ladyboys.

Ajin 'Joy' Kingkaew, who runs the One More bar on Soi Easy, said this high season has been "very good", but it is her first high season running the business.

"It's much better than the low season, that's for sure," she said.

Lindsay Turpin, proprietor of the Piccadilly Bar on Soi Kebsup, said, "Everybody is saying that there are a lot of different people here now. That may be so, but they are not the big-spending guys in the bars. I think there are more Koreans and Japanese about, but the bars aren't really their scene."

"If you walk down Soi Bangla it may look like there are a lot of people about, but honestly it is not as many as in years past," he added.

-- Phuket Gazette 2010-01-19

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[kartman]

They have to save holiday spending money for TUKTUK "fares".

[madmitch]

But of course next year there will be fewer tourists in Phuket but all spending much more money.

Won't there?

[moskito]

what they expect when they bring only all inclusive touris to Phuket, Cheap flights with hotel, breakfast and dinner, Most of this customers doesnt leave the hotels much and if so they buy some souvenirs....faked shirts or shoes, rest of the money goes to the Tuk Tuks

No. 1 of my personal KINIAU List are the <snip> ...sorry Frensh and the Germans followed by Estonians and Litavians. The Swedes and other Scandinaviens seems to have some money left for their HOLlIDAYS

Edited January 19, 2010 by soundman
Removed racial slur.

[FarangCravings]

Not surprised with how much they charge down there 190 baht for a Jack Coke

THEY ARE HAVIN A LAUGH daylight robbery its cheaper in the UK

Krabi is the same me mate and I rode our Bikes from Chiang Mai to Krabi and small chang beer was 120baht and Jack coke again 170-190 baht food was starting at 200 baht up. We chatted to a british girl who expressed it was very expensive there and she expected it to be much much cheaper not more expensive than back home.

Thailand is still inexpensive you just gotta avoid he tourist traps.

[moe666]

Don't go to France if you want cheap 6.00 dollars for a coke.

[FarangCravings]

Don't go to France if you want cheap 6.00 dollars for a coke.

Been to france many times never paid $6 for a coke unless your sitting on the main tourist streets where it certainly will cost you 7-8 bucks for a coffee. Buy in a regular shop its reasonable and in line with europe.

[alfbondi]

Mate word has got around that los, now means , land of scams .Until thais stop scamming and trying to rip off tourists , im afraid that it wont get any better. Also farang bar owners have to wake up to themselfs and lower prices.

[steelepulse]

Maybe the TAT with their new tourism drive knew about this. After all,their new drive is to promote quality over quantity tourists.

[gotlost]

Bring back the Monger he well spend the money.

[KKvampire]

All these air routes to Phuket now, lots more tourists to be cheated. Phuket avoid it totally

[lazygourmet]

Don't go to France if you want cheap 6.00 dollars for a coke.

Been to france many times never paid $6 for a coke unless your sitting on the main tourist streets where it certainly will cost you 7-8 bucks for a coffee. Buy in a regular shop its reasonable and in line with europe.

Fifty euros for one G

Hups... sorry, wrong topic!

[ThailandTommy]

I have been to Phuket once, just the once what a rip off!!! If the year to year takings are down 30-40% I guess the bar owners are going to attempt to make up the loss by putting prices up?

Thailand is no longer a 'cheap' or indeed a 'value for money' destination there are many places that offer better service, falang food at the same price or cheaper than is available in the main tourists resorts of Thailand.

It is easy to tarnish the Thai tourist industry as being a 'rip off' however if you look at the root problem it is that the average Thai is living on the poverty line there is no Government assistance for these people to achieve a basic standard of living.

Most have no opportunity to travel and see the standards and what is expected in other countries, a good example is a cocktail waiter who will mix you a drink without ever having the opportunity of sampling it in another country. How can they possibly be expected to know when they have got it right?

Thailand is a third world country despite what the Government say/believe the rich get richer and the poor..............

The world has got wise as to what lies behind the smiles in the LoS.

I mentioned in another post that I believe that any budget that has been allocated to TAT to entice 'quality' tourists would be far better used educating members of the service industry (which is virtually non existent).

That applies to franchises such as McDonalds (where my tw recently ordered in Thai a triple cheese burger) and I received? A triple cheese burger without the cheese!!

To the so called 'up market' establishments where again recently we have been met with poor service and terrible food of course when the food is left there is no concern by the waiters as to why you have not eaten no offer of exchange and absolutely no hint/offer of a reduction/discount of the bill.

But there is a service charge added which when you refuse to pay the LoS turns into the land of a face like a slapped arse!

I am afraid that until Thailand wakes up and again starts giving value for money and improving service things will not improve.

[473geo]

A while ago you brought £1000 you had 70,000 baht to spread around

Now you bring £1000 you have circa 50,000 baht to spread around

about 28% less - roughly

Not really rocket science........

[Thaihog]

It's hardly surprising that people aren't spending, especially the Brits given the current exchange rate. As somebody mentioned earlier it's almost cheaper to get a drink back in the UK.

The Thais keep raising the prices every year and don't think to lower them... they seem to think that all Farang have hens laying golden eggs back home, lol...

When are the Thais going to wake up and appreciate the resident expats who support the economy 24/7 monthly/yearly...

[davejonesbkk]

Don't go to France if you want cheap 6.00 dollars for a coke.

Been to france many times never paid $6 for a coke unless your sitting on the main tourist streets where it certainly will cost you 7-8 bucks for a coffee. Buy in a regular shop its reasonable and in line with europe.

Fifty euros for one G

Hups... sorry, wrong topic!

lol nice one

[webfact]

Don't go to France if you want cheap 6.00 dollars for a coke.

Been to france many times never paid $6 for a coke unless your sitting on the main tourist streets where it certainly will cost you 7-8 bucks for a coffee. Buy in a regular shop its reasonable and in line with europe.

Fifty euros for one G

Hups... sorry, wrong topic!

I am sure we don't have such topic on TV.... 5--4--3--2--1.....

[vladaman]

We visit Phuket quite often. At least 3 times a year. We've also spent peak season there this year (Christmas & New Year). I may sound like resorts & hotels a are full but believe me they are not! We booked rooms at Sugar Palms resort where regulary rooms can be fetched for 999 THB/night off season. For high season they started with prices at 6.000 THB / night. Once they progressed closer to the dates the prices were gradually coming down. On Latestays.com we booked rooms for about 2.800 THB just two days before we arrived. They offered 300 THB for a breakfast/day - which we rejected - Starbucks is cheaper! Got significant discount. And they were not full! I also refused to pay their rate of 20.000 THB or more for New Years night so we moved to a guest house. Super-nice hotel style guesthouse newly opened for 1.000. Great deal.

I could also see many people arrived on 24th and left on Monday 4th. For example Wine Connection Resuatrant on Patong was not as busy before and after the holidays. I assume many BKK expats who came to Phuket to spend their short holidays.

We had no problem getting great deals, from car rentals, accommodation, boat trips, elephant rides etc. When I tried to book in several months ago nobody would accept a deal. Their excuse was always "expecting peak season". But once peak season arrived deals could be made easily.

Regular Prices offered to tourists:

Car Rent - 1.200 THB / day or more (We got for 850 THB)

Elephant ride - 800 THB/person/30 mins (We got 600 for two!)

Snorcheling trip - 1.200 THB/person/half day (We got own one engine speed boat for 3.500 THB / 4 hours)

Phuket is not a cheap place to visit especially when you don't know the right places. Tourist traps and very expensive and really if tourists are not aware they can spend big bucks. I saw many Russians this year but people really don't spend. And why should they - in land of rip-offs. We are still walking ATM machines for them. And this will stay like that for at least a generation.

[dmax]

well thailand is not cheap !! i buy a case of budweiser beer from asda back in uk 20 bottles for £ 10-12 gbp thats like 25 baht per bottle, compare that to shitty chang ..only thing cheap in my opinion is accomadation and something else which i wont mention on this forum but i bet you guessed allready.

[ballpoint]

well thailand is not cheap !! i buy a case of budweiser beer from asda back in uk 20 bottles for £ 10-12 gbp thats like 25 baht per bottle, compare that to shitty chang ..only thing cheap in my opinion is accomadation and something else which i wont mention on this forum but i bet you guessed allready.

A Budweiser drinker calling any other beer shitty.

[animatic]

Don't go to France if you want cheap 6.00 dollars for a coke.

Been to france many times never paid $6 for a coke unless your sitting on the main tourist streets where it certainly will cost you 7-8 bucks for a coffee. Buy in a regular shop its reasonable and in line with europe.

Fifty euros for one G

Hups... sorry, wrong topic!

I am sure we don't have such topic on TV.... 5--4--3--2--1.....

So be like Bill. don't inhale,

or at least don't admit you did.

[tartempion]

I am on Koh Phi Phi right now and the place is loaded.

At 8.30 am 3 boats fully loaded with farangs went on their way to the island.

Hotels and guesthouses are full, restaurants are full at lunch time and evening.

I see people buying at the shops all the time.

We had a trip by speed boat and ended at Maya beach (The Beach) with 50 other speed boats anchored there. Seems price to rent a speed boat is 1k/hour, they are doing good business believe me.

We stay in a 3-4K baht/night hotel and the place is fully booked.

Over to you

[Steps]

Mate word has got around that los, now means , land of scams .Until thais stop scamming and trying to rip off tourists , im afraid that it wont get any better. Also farang bar owners have to wake up to themselfs and lower prices.

Spot on. And i think if the farang bar owners lower their prices then they should attract more business and get good referals of tourists speaking to tourists. Word will get around what bars are cheap and what are not. Once that happens they should start to see their bars pack out with the Thai owners then having to follow suit.

[geriatrickid]

Maybe it is finally beginning to dawn on these clowns that the visitors from the EU and Australia were not so bad after all. Last year they were making pronouncements about how the asian and middle eastern tourists were going to save the tourist economy. In the process they chased off the more socially conscious western visitors. Now what do they have? Middle easterners that back home persecute and kill transgenders, but who gather in Patong to socialize with them, and asian tourists that flock together and will not leave the hotel or escorted bus tour.

Whatever the faults of the western tourist are, at least that tourist went into the Thai operated businesses, at least those tourists for the most part had some modicum of respect for the locals and at least those tourists were the ones that were bringing along parents and children. You don't see too many visitors from Japan, Korea, China or the Middle East with families do you? The only "new" group of visitors that brings along grandma and the kids are the Indians and that may have more to do with the fact that these Indians have more in common with western visitors than they do with the "other" group. Once they are alienated, they will react much like their western brethren.

[Thai at Heart]

Maybe it is finally beginning to dawn on these clowns that the visitors from the EU and Australia were not so bad after all. Last year they were making pronouncements about how the asian and middle eastern tourists were going to save the tourist economy. In the process they chased off the more socially conscious western visitors. Now what do they have? Middle easterners that back home persecute and kill transgenders, but who gather in Patong to socialize with them, and asian tourists that flock together and will not leave the hotel or escorted bus tour.

Whatever the faults of the western tourist are, at least that tourist went into the Thai operated businesses, at least those tourists for the most part had some modicum of respect for the locals and at least those tourists were the ones that were bringing along parents and children. You don't see too many visitors from Japan, Korea, China or the Middle East with families do you? The only "new" group of visitors that brings along grandma and the kids are the Indians and that may have more to do with the fact that these Indians have more in common with western visitors than they do with the "other" group. Once they are alienated, they will react much like their western brethren.

It is interesting how it appears that TAT doesn't even know what its target customer is. We want high spenders, we want numbers, we want westerners, we want asians, we want ecotourists. Every year a new fad and a new idea, general of all, master of none.

All want different things, need different levels of investment, and different types of service in different parts of Thailand. They need to become so much more sophisticated in their analysis that by the time they have got their numbers straight the results will have been skewed by another global recession.

Do they want the family of 4 from Europe in a 4 star hotel who want to eat out and let the kids have fun, or do they want golf tours for single blokes who like Karoke, or 18-30 on the razz chasing the girls? I only say this because a Korean colleague of mine has been offered by an agent to take his honeymoon on a package in Pattaya.

Hardly your dream honeymoon destination. I told him better to try one of the islands.

[sunsamourai]

Maybe it is finally beginning to dawn on these clowns that the visitors from the EU and Australia were not so bad after all. Last year they were making pronouncements about how the asian and middle eastern tourists were going to save the tourist economy. In the process they chased off the more socially conscious western visitors. Now what do they have? Middle easterners that back home persecute and kill transgenders, but who gather in Patong to socialize with them, and asian tourists that flock together and will not leave the hotel or escorted bus tour.

Whatever the faults of the western tourist are, at least that tourist went into the Thai operated businesses, at least those tourists for the most part had some modicum of respect for the locals and at least those tourists were the ones that were bringing along parents and children. You don't see too many visitors from Japan, Korea, China or the Middle East with families do you? The only "new" group of visitors that brings along grandma and the kids are the Indians and that may have more to do with the fact that these Indians have more in common with western visitors than they do with the "other" group. Once they are alienated, they will react much like their western brethren.

for once i do agree with what you say

[mommysboy]

Not surprised with how much they charge down there 190 baht for a Jack Coke

THEY ARE HAVIN A LAUGH daylight robbery it's cheaper in the UK

Krabi is the same me mate and I rode our Bikes from Chiang Mai to Krabi and small chang beer was 120baht and Jack coke again 170-190 baht food was starting at 200 baht up. We chatted to a british girl who expressed it was very expensive there and she expected it to be much much cheaper not more expensive than back home.

Thailand is still inexpensive you just gotta avoid he tourist traps.

Amazingly that goes for quite a few things in Thailand in general: internet, electronics, beer, and some food.

Certainly not so cheap so naturally you compare quality- need I say more?

[livinthailandos]

I do have to agree with the statement as it has been made. I would like to clarify though as my experience

for any real thai business to survive there going to need to have a wide open perspective, open mind and logical thinking. I did really well last year better than most hotels but I did it not by raising prices or cheating the customer. I realized most customers are simply looking for value and to spread their money to make it go further when traveling.

From my own opinion I believe the next 2 years are going to be slow and on top there's still a chance for a double dip recession to come through simply due to government stimulus runs out, and simply enough we have more debt than savings.

[rfukata]

"It is interesting how it appears that TAT doesn't even know what its target customer is. We want high spenders, we want numbers, we want westerners, we want asians, we want ecotourists. Every year a new fad and a new idea, general of all, master of none."

TAT and the tourist industry needs a total new facelift. You are correct in saying -'master of none'.

the conditions in Thailand (tourism) will continue to deteriorate without any new strategies and measures.

I have always mentioned on these forums concerning tourism is that Thailand needs an professional outside

travel manager to overlook this industry. There are many other attractive destinations besides Thailand that

exist.

[stingray]

World Econommy isn't good at the moment, but It's not only that peaple not spend much money. Pattaya has the same problem. It's a matter of facts that every soi getting filled up with shophouses, marked stalls, almost every squere meter of a town gettiing convertet to shops, bars, sales places, almost in each Dogsoi is "Tarat Nat" Market,, there are thousends of Beautyshops, bars, Noodle shops, Loundries, Internet Cafes, or what ever, so there is to many thing in compare 10 years ago. The amouts of tourists are maybe the same as 10 years ago, so even the spending maybe would be the same ,but the amouts of shopping opportunities 10 times more than 10 years ago. so the customer has more opportinities and choices. No wonder whay all gonna collaps. By thye way, all those shouphouses, directly built to the street, without parkingspace, so peaple have to parking on the roads and in narrow sois and therefore the traffic jams. Since to be goverments and Cityhalls (who give the licenses to build) not understanding why they have traffic jams