For those that think Phuket tourism is dying

[madmitch]

Here is an article from this week's Sunday Times. (no link as the Sunday Times is subscription only)

Of course they don't mention that the beach clubs are often illegally built, that it costs a fortune to get there by tuktuk or taxi small local vendors. But the Sunday Times doesn't care about that, nor do the tourists that frequent these places.

Just the type of article that will have the TAT and Government salivating as it emphasises the move to the upmarket traveller.

[Old Croc]

Will the people flying in on the cheap charter flights described really be staying, and partying, at the upmarket beach clubs mentioned?

[KarenBravo]

Phuket tourism isn't dying, it's changing............for the worse.

Tourism numbers are up, but, income per head is well down.

[nedkellylives]

The higher end resort hotels are busy with people who can afford them

less people here who travel on a limited budget, probably going to cheaper asian holiday destinations

like Loas and Cambodia

[IrishIvan]

Phuket tourism isn't dying, it's changing............for the worse.

 

Tourism numbers are up, but, income per head is well down.

The prices might drop then

[NamKangMan]

Phuket tourism isn't dying, it's changing............for the worse.

Tourism numbers are up, but, income per head is well down.

This is EXACTLY how I see Phuket tourism.

When you say, "for the worse" - I have no issues with the new new demographic of tourist here now.

The simple fact is, they just do not spend as much money whilst on their holiday here.

You may as well call the new demographic of tourists here "high end backpackers."

Edited October 15, 2013 by NamKangMan

[NamKangMan]

Phuket tourism isn't dying, it's changing............for the worse.

Tourism numbers are up, but, income per head is well down.

The prices might drop then

Rents would have to drop for prices on Phuket to be able to compete with other desinations in Thailand.

I just can't see that happing. If anything, they will increase, to keep the same profit.

Edited October 15, 2013 by NamKangMan

[Paangjang]

Phuket tourism isn't dying, it's changing............for the worse.

Tourism numbers are up, but, income per head is well down.

The prices might drop then

You've been here too long, roo maak!

[Paangjang]

Phuket tourism isn't dying, it's changing............for the worse.

Tourism numbers are up, but, income per head is well down.

The prices might drop then

Rents would have to drop for prices on Phuket to be able to compete with other desinations in Thailand.

I just can't see that happing. If anything, they will increase, to keep the same profit.

Me thinks Irish was being sarcastic. Thai's dropping price's...

[NamKangMan]

Phuket tourism isn't dying, it's changing............for the worse.

Tourism numbers are up, but, income per head is well down.

The prices might drop then

Rents would have to drop for prices on Phuket to be able to compete with other desinations in Thailand.

I just can't see that happing. If anything, they will increase, to keep the same profit.

Me thinks Irish was being sarcastic. Thai's dropping price's...

Yes. One thing that will never "die" on Phuket - greed. :)

[LivinginKata]

I just can't see that happing. If anything, they will increase, to keep the same profit.

Not sure I agree with that. They will increase to pay for ever rising key money/lease costs. I doubt any small business is 'keeping the same profit'.

[A1Str8]

It is not dying. The only things that are dying are the brain cells of those who said it is.

[jaffacakes1]

Thanks for taking the time the post - interesting and very encouraging reading. Exciting times ahead for our little island.

[simon43]

Phuket tourism isn't dying, it's changing............for the worse.

Tourism numbers are up, but, income per head is well down.

Absolutely agree. The tourists will still come in large numbers, but they will be/(are already) spending less per head and looking for bargains.

I'm glad that my land lease rent is fixed by contract at a lowish amount for the next 15 years - those businesses on 3+ building rentals may well be in for some sharp rent increases.

Simon

[NamKangMan]

I just can't see that happing. If anything, they will increase, to keep the same profit.

Not sure I agree with that. They will increase to pay for ever rising key money/lease costs. I doubt any small business is 'keeping the same profit'.

I meant, if anything, Thai landlords will increase their rents and/or key money/lease, to make up for some of their properties and beer bars that are vacant, mainly due to the new demographic of tourists.

Rents go up, the small business owners pass these inreases onto the customer and affordability decreases for the holiday maker - and this is the cycle Phuket has be going through in recent years, as it outprices itself compared to other destinations in Thailand, thus, losing more and more of the traditional western market.

Throw on top of that some of Phuket's "issues" such as no transport, flooding, power blackouts, water cuts etc and you can see why, for many, Phuket no longer represents a value for money holiday, and the majority of the tourists it now attracts are from the emerging economies.

[NamKangMan]

Phuket tourism isn't dying, it's changing............for the worse.

Tourism numbers are up, but, income per head is well down.

Absolutely agree. The tourists will still come in large numbers, but they will be/(are already) spending less per head and looking for bargains.

I'm glad that my land lease rent is fixed by contract at a lowish amount for the next 15 years - those businesses on 3+ building rentals may well be in for some sharp rent increases.

Simon

I agree. I can only see rents increasing, certainly not decreasing.

Whilst members of the dozen or so families here that own the majority of the prime real estate on Phuket continue to collude, rather than compete, Phuket's future remains unstable.

These Thai landlords have pushed the "Phuket brand" over what the market was prepared to pay, and have lost, and will continue to lose, western market share.