Phuket Green Season is Dead Season

[simon43]

I rarely venture out to the tourist areas of Phuket. But since it was a quiet day, my boss let me have the day off, (provided I make up the loss time for no wages...).

Anyway, I drove down through Cherng Talay, Bang Tao, Surin, Kamala, Patong, Karon, Kata and finally Rawaii.

I was really shocked at how DEAD the tourist beaches were. In almost all the above locations I saw large, empty restaurants and shops with no customers whatsoever. At Karon Beach I counted THREE tourists on the main shopping drag. The beach had rows of empty deckchairs. Many massage and souvenir shops had their shutters down.

I know it's the low season, but those who say Phuket hasn't been affected by the political turmoil are talking out of their rear-ends!

The most lively area was in Rawaii, and I am guessing that many of the foreigners were expats, not tourists.

Unless tourism picks up soon, there will be a lot of failed tourist businesses.....

BTW, of the few tourists that I spotted, why did most of the men sport large man-boobs and feel the need to flaunt them in the street? It was a revolting sight!

Simon

[NomadJoe]

Yep, I think the reasons are obvious. I spoke to staff at a couple of big hotel chains yesterday which in the past seasons reported 60-70% capacity. They are at 20% now.

[KarenBravo]

Was in Central Festival today.

Was packed with tourists and locals.

[LivinginKata]

Was in Lotus yesterday on the bypass. Packed out, car park full, really full. Amazing to see so many Thais and Farangs.

[shirtless]

Lets hope its picks up as many people on the island have paid premium prices for properties and businesses.

[NamKangMan]

Lets hope its picks up as many people on the island have paid premium prices for properties and businesses.

A lot of foreigners try their best at business here, and in general, run a good operation.

The problem is, they are constantly being undermined by the "influential people" on Phuket that are driving the tourists/customers away. That's the western tourists, not the "zero baht" package holiday makers from emerging economies.

Edited June 8, 2014 by NamKangMan

[LivinginKata]

Oh dear oh dear, how can an innocent topic go so quickly off the rails. A defamatory post has been removed and all the follow-up posts quoting that posts have been removed.

Any more of this and suspensions will be in order.

Public warning here and now.

[NamKangMan]

I actually don't think there is anymore "high season" on Phuket.

The tourist numbers may be up from November to April, but due to the demographic of those tourists, the money turnover is not up, which was typical of a high season in the past.

So, high season may describe a larger number of tourists on the island, but not necessarily more profits for businesses.

[madmitch]

I actually don't think there is anymore "high season" on Phuket.

The tourist numbers may be up from November to April, but due to the demographic of those tourists, the money turnover is not up, which was typical of a high season in the past.

So, high season may describe a larger number of tourists on the island, but not necessarily more profits for businesses.

Total nonsense.

[Guest]

I did almost the same route as Simon (from Chern Talay to Kata and then to Chalong). Thought the exactly same. There was very little traffic overall. Bang Tao was almost a ghost town. Surin beach had maybe 20 people swimming. Kamala had some activity.

Only place with a lot of traffic jam was from Chalong towards to Town on Chaofa east, but they seemed to do some road works.

Chaofa night market was quite full as well.

[NamKangMan]

I actually don't think there is anymore "high season" on Phuket.

The tourist numbers may be up from November to April, but due to the demographic of those tourists, the money turnover is not up, which was typical of a high season in the past.

So, high season may describe a larger number of tourists on the island, but not necessarily more profits for businesses.

Total nonsense.

Care to elaborate?

[fiddlehead]

They were all at Laguna yesterday.
6,000 runners, mostly tourists.

Was a good day!

[nedkellylives]

Its the same every year in june/july just ask business people who really know

[simon43]

Its the same every year in june/july just ask business people who really know

Well as a business person, I know that my hotel occupancy rate was 90% last June/July and now it is nearer to 50% this June.....

Edited June 9, 2014 by simon43

[RawaiPlaBoyz]

I actually don't think there is anymore "high season" on Phuket.

The tourist numbers may be up from November to April, but due to the demographic of those tourists, the money turnover is not up, which was typical of a high season in the past.

So, high season may describe a larger number of tourists on the island, but not necessarily more profits for businesses.

Tis now Low Season and No Season...

Yippie, more pirated goods at better prices

[mikejphuket]

How sad that dead and therefore alive seem to have to relate to something as cosmically meaningless as the number of tourists in Phuket. If anyone wants to experience something Totally alive simply walk through the jungle on one of these hot and steaming days. The energy given off by incredible growth as life springs forward is tangible and very real.

Before giving a sarcastic reply, why not try the walk first??

[madmitch]

I actually don't think there is anymore "high season" on Phuket.

The tourist numbers may be up from November to April, but due to the demographic of those tourists, the money turnover is not up, which was typical of a high season in the past.

So, high season may describe a larger number of tourists on the island, but not necessarily more profits for businesses.

Total nonsense.

Care to elaborate?

NKM, you have made it clear many times that you are not involved in any business in Phuket and therefore you perhaps don't realise the difference in turnover/profit between the high and low seasons.

Fewer numbers mean less profit, regardless of demographic. The Chinese and Russians do spend some money, despite popular belief, just in a different way to Western tourists. You might also remember an article published last week about the Chinese and Russians being the mainstay of the low season here in Phuket, so if anything your logic could be reversed.

The best example is the accommodation business. Low season occupancy rates run at a fraction of those in high season and the room rates are much, much lower. Most hotels and guesthouses will make between 70% and 100% (yes, 100%) of their turnover from November to April.

Many restaurants, bars, massage shops and other tourist related businesses struggle to stay afloat in low season, and don't be surprised to see more than the usual number of closures during the next few months.

I actually thought you were posting a troll post and I was the "victim" but perhaps you really did believe what you had written.

[nedkellylives]

Its the same every year in june/july just ask business people who really know

Well as a business person, I know that my hotel occupancy rate was 90% last June/July and now it is nearer to 50% this June.....

Of coarse occupancy rates are down in guest houses or mini hotels as you like to call your guesthiuses

They are popping up everywhere,where there used to be one at a location now there are three

Its like the stalls selling pineapples on the way to the airport first there was one now about twenty all

sharing the same amount of customers

If you cannot handle the heat get out of the fire or invest more money in a business that does pay in

the right location with passing trade, location counts in any business

I do not think your average tourist wants to stop in a guesthouse in a rubber plantation

in the middle of nowhere

[simon43]

I do not think your average tourist wants to stop in a guesthouse in a rubber plantation

in the middle of nowhere

Your trolling won't work, sorry.......

My OP was commenting on how dead in general terms Phuket was, and I was comparing it to the same time last year. Of course, it's hardly surprising since we have a military junta running the show...

I feel sorry for those businesses who will not be able to ride out this lull.

[stevenl]

I do not think your average tourist wants to stop in a guesthouse in a rubber plantation

in the middle of nowhere

Your trolling won't work, sorry.......

My OP was commenting on how dead in general terms Phuket was, and I was comparing it to the same time last year. Of course, it's hardly surprising since we have a military junta running the show...

I feel sorry for those businesses who will not be able to ride out this lull.

In my opinion military junta is affecting bookings for the coming months, the present business climate is due to several factors, the political turmoil in Thailand before the coup probably the biggest of them all.

[NamKangMan]

I actually don't think there is anymore "high season" on Phuket.

The tourist numbers may be up from November to April, but due to the demographic of those tourists, the money turnover is not up, which was typical of a high season in the past.

So, high season may describe a larger number of tourists on the island, but not necessarily more profits for businesses.

Total nonsense.

Care to elaborate?

NKM, you have made it clear many times that you are not involved in any business in Phuket and therefore you perhaps don't realise the difference in turnover/profit between the high and low seasons.

Fewer numbers mean less profit, regardless of demographic. The Chinese and Russians do spend some money, despite popular belief, just in a different way to Western tourists. You might also remember an article published last week about the Chinese and Russians being the mainstay of the low season here in Phuket, so if anything your logic could be reversed.

The best example is the accommodation business. Low season occupancy rates run at a fraction of those in high season and the room rates are much, much lower. Most hotels and guesthouses will make between 70% and 100% (yes, 100%) of their turnover from November to April.

Many restaurants, bars, massage shops and other tourist related businesses struggle to stay afloat in low season, and don't be surprised to see more than the usual number of closures during the next few months.

I actually thought you were posting a troll post and I was the "victim" but perhaps you really did believe what you had written.

That's correct, I am not involved in business here, but I do notice, as the OP pointed out, there are not many people around. Not in the restaurants, bars, shopping centers, markets, beaches etc. Sure, we had a military coup and a curfew. It could be a short time thing, or a long term thing. Only time will tell. Friends and aquaintances in business tell me "it's quiet."

Whilst the European winter will always provide an incentive for many tourists from Europe to escape the cold, they are not coming to Phuket in the numbers they used to.

Some reasons for that have been discussed here previously, like the high baht to euro, the GFC, the European Crisis and the also the fact many are chosing to holiday elsewhere from Phuket. Hua Hin is now very popular with the Germnans and Scandi's.

In relation to accommodation, I believe the package holiday makers, mainly Russian and Chinese, get their room at a bargan price, due to the bulk reservation of rooms. I know this as a fact because I have a friend working in the reception of a hotel here that caters for Russian tourists.

In my opinion, many hotels thought if we don't make much on the room, we'll make it up in the hotel's restaurant and bar, due to the higher numbers staying at the hotel, but we all know Russian buy alcohol for 7/11 or Family Mart and both seems to eat in the cheaper street food stalls or buy food from supermarkets. I have personally seen tour groups in Big C, buying food, on more than one occassion.

I see the OP has added another post that his hotel occupancy rates are down from the same time last year.

The point I was trying to make, and it certainly was not a troll post, is that even in the "high season" between November and April, if occupancy rates are up, that does not mean profits will be up accordingly, and that's due to the demographic of tourists coming here now.

You have stated, "Fewer numbers mean less profit, regardless of demographic" - isn't this why the TAT wanted the "high end" tourist here, because whilst they are "fewer in number" they spend more? So, I would disagree with your comment. One high end tourist would most probably spend more than many package holiday makers.

The "zero baht" tourists have been discussed here before. The point I am making is the tourist areas can be full of people, but if they are not spending money, it doesn't matter how many people there are, businesses will struggle. Sure, the Russians and Chinese spend money in different ways, but do you think it's the same amount of money as the free spending westerner spent here in the past?

So, whilst "high season" has been associated with higher tourist numbers, therefore higher profits, it's possible numbers will still be up, but profits will be down on past years, and isn't "profit" how you judge the viability of a business?

I'm not Russian and Chinese "bashing." They come here in large numbers and there must be a flow on effect through the local economy, but I really think the TAT needs to look at why Phuket is losing its traditional western market.

Edited June 9, 2014 by NamKangMan

[nedkellylives]

I do not think your average tourist wants to stop in a guesthouse in a rubber plantation

in the middle of nowhere

Your trolling won't work, sorry.......

My OP was commenting on how dead in general terms Phuket was, and I was comparing it to the same time last year. Of course, it's hardly surprising since we have a military junta running the show...

I feel sorry for those businesses who will not be able to ride out this lull.

I am not being a troll just stating a fact from your own posts about your new guesthouse

You are compeating with your ex wives among others and your location is not good

Its the time of the year and more competition from the same type of businesses that has made the difference

You could always teach Italian one of your many spoken languages if things get tight

The army seems to be sorting out the problems phuket has which is a good thing in my opinion and

will improve Phuket for tourists and related businesses in the future

[simon43]

even in the "high season" between November and April, if occupancy rates are up, that does not mean profits will be up accordingly, and that's due to the demographic of tourists coming here now.

Spot on. More than 70% of my hotel guests are Chinese, whereas that 70% would be 'western' guests 5 years ago. The average Chinese is not known as a big spender on extras, such as meals and drinks.

If I could charge a premium for hot water and MaMa noodles, then I would be a rich man

If Phuket wants to bring back the Western tourists, the Scandanavians, the Brits etc in decent numbers, then there needs to be a paradigm shift in the manner in which the island is managed.

Knocking down a few taxi huts is a good start, but that is only scratching the surface.

[madmitch]

Your logic is flawed.

The demographic in low and high season is the similar, therefore the drop in spending applies equally to both seasons.

Heavily discounted room rates occur year round for the package tours.

Profits and turnover may be down for many tourist businesses with similar customer numbers but the difference between low and high season profits is enormous and not being in business here, that is something that I think you haven't grasped.

If low season occupancy and prices lasted all-year then no hotel business would survive.

[simon43]

You are compeating with your ex wives among others and your location is not good

Its the time of the year and more competition from the same type of businesses that has made the difference

Not competing - my Channel Manager 'shares out' the bookings between all the hotels

I agree that there are more guesthouses/hotels in this area than before. But they are not really competing with me because they tend to look after the holiday guests (more than one night of stay), and many of these guesthouses are not open 24/7.

My own new guesthouse is not open yet, (I'm planting flowers still), and I personally have no worries about attracting sufficient numbers of guests.

My OP was about how quiet Phuket is in general terms, not really specific to my businesses, which have a lower occupancy rate than last year - the reasons for that are all too clear.

Let's hope that after the military have trashed all the illegal taxi huts, they then go after all the other illegal and scamming businesses, and then clear up the rubbish in the streets and on the beaches as well, and remove the eyesore and illegal advert billboards and ..... and ... the list is LONG!

[NamKangMan]

even in the "high season" between November and April, if occupancy rates are up, that does not mean profits will be up accordingly, and that's due to the demographic of tourists coming here now.

Spot on. More than 70% of my hotel guests are Chinese, whereas that 70% would be 'western' guests 5 years ago. The average Chinese is not known as a big spender on extras, such as meals and drinks.

If I could charge a premium for hot water and MaMa noodles, then I would be a rich man

If Phuket wants to bring back the Western tourists, the Scandanavians, the Brits etc in decent numbers, then there needs to be a paradigm shift in the manner in which the island is managed.

Knocking down a few taxi huts is a good start, but that is only scratching the surface.

I agree.

Phuket, as a "brand" has been losing its western tourists, slowly by slowly, for the past few years.

Their old ways of doing business here, through collusion and monopoly, has meant Phuket has become less competitive, and therefore, less desirable than it was in the past.

It's harder to get an old customer back, than it is to attract a new one, so Phuket is going to need some big changes if they are to lure back the western market that it has lost.

[KarenBravo]

Just got back from breakfast at Kallots in Rawai. This place is popular year round. I was the only customer.

Then went to Villamart (11:00 am) to buy ingredients for a curry. Only four customers in the whole place.

Abnormally quiet for this time of year. Once the new visa rules kick in on 12th August, it will only get worse, especially Rawai and Chalong due to the crack-down on Russians.

[xylophone]

I think this is the quietest I have ever seen Patong, apart from the occasional load of Chinese or Korean tourists who seem to pop up every now and then, filling their Big C trolleys up with noodles and powdered sauces at 12 baht each.

I have eight friends who have their own businesses and all are saying that spend is definitely down on any other year. As a sure sign to back this up, there are four restaurants for sale in Nanai Road alone, and one bar is offering Chang beer at 50 baht, whilst another is offering beer at 49 baht...........not a lot of margin in that.