Opinion: The changing face of Phuket’s tourism industry

[Lite Beer]

Opinion: The changing face of Phuket’s tourism industry
The Phuket News

The number of tourists visiting keeps growing, but the faces keep changing. Photo: Phuket News / file

PHUKET: With the number of tourists visiting Phuket increasing year after year, it has become common knowledge that people from all over the world, at one time or another, have chosen this “paradise island” as their preferred holiday destination. Noticeably in recent years, the number of Chinese tourists has increased, as has the number of Russian visitors.

Previous core source markets ran the gamut from Australia to the UK, the US, Western Europe, South Korea, Malaysia and elsewhere in Asia. Shifting with the world’s winds of change, Thailand’s tourism promotion officials continue to seek out newer, lucrative markets. In the latest notable campaign, The Phuket Tourist Association have joined the “Amazing Road Show to Kazakhstan 2015”.

Vice President of the Phuket Tourist Association Bhuritt Maswongssa said that tens of thousands of Kazakhs travel to Phuket each year, but that most of them come to the island in the high season by charter flights, as no direct flights are available at present. (See story here).

But many tourism stakeholders remain sceptical about this latest campaign, which echoes similar drives in recent years pushing for “lucrative” tourists from India and Middle Eastern countries.

Indeed, in light of the decline of traditional long-haul markets, the Thai government has realized the potential in short-haul markets, and have already begun to cash in to ensure growth projections remain on target.

Tourists from East Asia – including Asean – made up 60 per cent of all tourists to the kingdom in March, according to a report from the Tourism Department. That represents a 55pc jump year-on-year. This is in contrast to European markets, which made up a fifth of all tourists, about a 15pc decline y-o-y.

Leading the pack, Chinese visitors now account for about a fifth of all foreign travellers to the kingdom, with the arrivals doubling year-on-year.

The dialogue and debate of “quality vs quantity” continues. And to gauge perceptions of readers, The Phuket News’ latest poll asks readers one simple question: “Where’s your preferred foreign tourist from?”

Source: http://www.thephuketnews.com/opinion-the-changing-face-of-phuket-tourism-industry-52865.php

-- Phuket News 2015-06-21

[NamKangMan]

"Chinese visitors now account for about a fifth of all foreign travellers to the kingdom, with the arrivals doubling year-on-year." - "This is in contrast to European markets, which made up a fifth of all tourists, about a 15pc decline y-o-y."

So, the Chinese now make up 20% of ALL tourists to Thailand, rising at 100%, year on year, and Europeans, which make up another 20% of the market, is declining at 15% year on year.

The Russian market will soon be non-existent, through no fault of Thailand.

You have to be doing something wrong to lose 15% of a segment of your market, year on year, of a total of 20% of your market.

That means a collapse of the European market within 7 years.

I would not be surprised if the statistics are worse than reported.

They have certainly killed the golden goose.

Very hard to turn around this decline in revenue from the lucrative European market.

Edited June 21, 2015 by NamKangMan

[Valentine]

The Chinese tourists only benefit a very few big businessmen plus those who work & get commissions form the latex/jewellery type emporiums. The hotels & resorts have to shave prices to a bare minimum plus pay commissions in order to have the dubious pleasure of the loud & stingy Chinese stay at their establishments. All the others at street level derive virtually zero from the hordes of Chinese plying our roads in large buses.

[amerasianex]

Happy to see the Thai people finally getting what they wished for. No more dollars or euros coming on vacation to Thailand......... Hide your silverware.........

[LivinginKata]

<snip>

You have to be doing something wrong to lose 15% of a segment of your market, year on year, of a total of 20% of your market.

That means a collapse of the European market within 7 years.

I would not be surprised if the statistics are worse than reported.

They have certainly killed the golden goose.

Very hard to turn around this decline in revenue from the lucrative European market.

Exactly ... but I don't see TAT making any effort to look at what they are doing wrong. And correct.

We all know many of the many problems tourists have while they are here in Phuket, and these are all reported on various web sites for potential tourists to learn about.

I suppose Phuket is just played out now for the Europeans, many other 'exotic' places to visit, maybe at a cheaper price.

I just don't see the Europeans, Australians, Americans coming back in any great numbers.

[robertthebruce]

Most tourists just want the basics, Clean Beaches, reliable public transport and reasonably priced Taxis.....

This for sure is not Phuket...

Phuket has been a holiday destination for years, these problems should of been addressed years ago.....

[LivinginKata]

Most tourists just want the basics, Clean Beaches, reliable public transport and reasonably priced Taxis.....

This for sure is not Phuket...

Phuket has been a holiday destination for years, these problems should of been addressed years ago.....

Exactly ... the basics at a fair price with a pleasant service.

Way I see it is that the Phuket authorities/vendors just don't care. They have always had an attitude that more flights are landing every day, with new mugs tourists. And they are correct, plenty more Chinese flocking in. But how much do they really add to the local economy ? They travel by bus, visit all these new bus park tourist trap stores, spend at the 7-11s.

Edited June 21, 2015 by LivinginKata

[2fishin2]

As already said, Chinese tourists in Phuket do not benefit the locals. They have little impact on local businesses and are bad for the island. This year's low season is worse than ever. I live in a condo with 200+ rooms. There might be 50 rooms occupied and those are people who live and work here long stay. A drive down Nanai Road will show you hotels with no people, businesses that have closed and bars devoid of customers. The only people seen are locals, and an occasional tourist. You dont see the Chinese tourists as they dont live in the area. The big tour groups of Chinese tourists are exactly what Thailand DOES NOT WANT.

[NamKangMan]

Happy to see the Thai people finally getting what they wished for. No more dollars or euros coming on vacation to Thailand......... Hide your silverware.........

"Hide your silverware." - yes.

As the free and easy western money dries up, I can only see crime increasing at a sharp rate here.

[madmitch]

With Indonesia and Vietnam both scrapping visa fees for a number of European countries, these countries could now attract more European travellers.

I can only see the current trend continuing with the Chinese completely dominating the Phuket market in a very short time and in doing so accelerating the demise of the Western tourist.

[steelepulse]

Happy to see the Thai people finally getting what they wished for. No more dollars or euros coming on vacation to Thailand......... Hide your silverware.........

"Hide your silverware." - yes.

As the free and easy western money dries up, I can only see crime increasing at a sharp rate here.

Every year this old chestnut gets brought out. NKM do you have any hard facts on this, or are you just reading the news reports online? In this day and age, news gets brought to the attention of everyone unlike in years past when it was suppressed or not reported.

[sanuk711]

Every year this old chestnut gets brought out. NKM do you have any hard facts on this, or are you just reading the news reports online? In this day and age, news gets brought to the attention of everyone unlike in years past when it was suppressed or not reported.---steelepulse

Your right steelepulse--& also correct that NKM wont be posting any facts to back up his secret info from his bar----there isn't any, but still the doomsayers live in hope.

For now, many countries are reaping the benefits. According to Brand USA, a tourism initiative launched by the American government, the average Chinese tourist spent $5,400 during their trip to the U.S., outspending other international tourists by 21 percent. http://www.ibtimes.com/chinese-tourists-break-spending-records-abroad-inbound-tourism-falls-1798196

And so it is with any other country you would like to Google---I didn't put the Thailand figures here (as I have done before) because I was told they are all part of a secret plot by TAT & the Thai Government. So I put the USA figures--but who knows maybe their in on the plot as well--, get NKM to ask at his local bar. Chinese tourist don't spend where you spend....(you would think that would make most bar fly's happy.) but they do spend more than you spend--fact

[fred Kubasa]

As already said, Chinese tourists in Phuket do not benefit the locals. They have little impact on local businesses and are bad for the island. This year's low season is worse than ever. I live in a condo with 200+ rooms. There might be 50 rooms occupied and those are people who live and work here long stay. A drive down Nanai Road will show you hotels with no people, businesses that have closed and bars devoid of customers. The only people seen are locals, and an occasional tourist. You dont see the Chinese tourists as they dont live in the area. The big tour groups of Chinese tourists are exactly what Thailand DOES NOT WANT.

Until 6 years ago I lived on Nanai Road and it was a great area - bars/restaurants/fresh market/plenty of English spoken/written but I, annoyed by the many stray angry dogs, high tuk tuk fares and narrow streets came to Pattaya where these 3 problems don't exist, ( whole new set of problems though ! )

[grumpyoldman]

"but they do spend more than you spend--fact"

Right!

[fred Kubasa]

Anyone notice that the Chinese listen at a volume of 2 and speak, ( shout ), at a volume of 10 ? I still recall

in the US at my local Chinee carryout, ( to dirty to eat there ),the little women, behind the sliding window hiding the kitchen/kennel, saying WHATCHUWAN ? They don't need phones as their voice carries 2 continents !

[NeverSure]

I just don't see the Europeans, Australians, Americans coming back in any great numbers.

I agree. I don't know about other countries but Americans have a large population (world's 3rd largest) but have a year around warm climate in all of the S. states. In addition the flight to LOS is long and arduous but one can drive across the border to Mexico or catch a quick flight to Central America.

There's no need to travel to SE Asia to change climates or cultures so the only reason to go is to experience different things. Those things must be nice by Western standard and they aren't.

Cheers.

[Lupatria]

It was already foreseeable more than a decade ago that one day GREED and IGNORANCE will kill the golden goose.

Edited June 21, 2015 by Lupatria

[NeverSure]

Every year this old chestnut gets brought out. NKM do you have any hard facts on this, or are you just reading the news reports online? In this day and age, news gets brought to the attention of everyone unlike in years past when it was suppressed or not reported.---steelepulse

Your right steelepulse--& also correct that NKM wont be posting any facts to back up his secret info from his bar----there isn't any, but still the doomsayers live in hope.

For now, many countries are reaping the benefits. According to Brand USA, a tourism initiative launched by the American government, the average Chinese tourist spent $5,400 during their trip to the U.S., outspending other international tourists by 21 percent. http://www.ibtimes.com/chinese-tourists-break-spending-records-abroad-inbound-tourism-falls-1798196

And so it is with any other country you would like to Google---I didn't put the Thailand figures here (as I have done before) because I was told they are all part of a secret plot by TAT & the Thai Government. So I put the USA figures--but who knows maybe their in on the plot as well--, get NKM to ask at his local bar. Chinese tourist don't spend where you spend....(you would think that would make most bar fly's happy.) but they do spend more than you spend--fact

I understand your point but I believe there is a different demographic of tourist going to America than Thailand. Thailand is the cheap alternative for less affluent Chinese. Some Chinese go to America and buy real estate which they can't and don't want to do in LOS.

Lacking any other information I still believe that the Chinese tourist to Thailand is the budget tourist on a shoestring.

Cheers.

[razer]

While other countries are targeting the huge retired expat community (and more to come) Thailand is doing what? .....

[Jimlove]

"Chinese visitors now account for about a fifth of all foreign travellers to the kingdom, with the arrivals doubling year-on-year." - "This is in contrast to European markets, which made up a fifth of all tourists, about a 15pc decline y-o-y."

So, the Chinese now make up 20% of ALL tourists to Thailand, rising at 100%, year on year, and Europeans, which make up another 20% of the market, is declining at 15% year on year.

The Russian market will soon be non-existent, through no fault of Thailand.

You have to be doing something wrong to lose 15% of a segment of your market, year on year, of a total of 20% of your market.

That means a collapse of the European market within 7 years.

I would not be surprised if the statistics are worse than reported.

They have certainly killed the golden goose.

Very hard to turn around this decline in revenue from the lucrative European market.

In more than one way I might add but maybe the Golden Goose committed "Suicide" ....

The numbers are most likely worse than they say but anything to keep their nepotism-jobs ...

[ICECOOL]

Ahhh..quality Chinese tourists

Phuket:- Four Chinese men were arrested in Phuket late Friday night after police found them allegedly using fake ATM cards to withdraw cash from an ATM machine in Patong area. Police seized over 200 fake ATM cards from the four suspects.

[quandow]

<snip>

They have certainly killed the golden goose.

<snip>

Exactly ... but I don't see TAT making any effort to look at what they are doing wrong. And correct.

<snip>

And THAT is the point, the foundation of most of Thailand's problems - Hubris (aka Saving Face).

They WILL NOT admit they made a mistake. It starts in school (no matter how many mistakes they make, they still get glowing grades), then moves on to whatever business their parents buy them into. Critical thinking has been successfully wiped out in this country. NOBODY makes mistakes here.

The emperor is fully clothed in lies and supported by lickspittle lackeys. Can you imagine ANYONE from any facet of TAT telling ANYONE from this governing body the TRUTH about how they're strangling this economy?

Heavy sigh . . . Thailand - Take a real look in the mirror and see what you are becoming.

[NCC1701A]

I am an American. Thailand is a sh*t hole. i live here. i know. why would an American want to come here? Maybe once for the experience. To show your kids how lucky they are. the Caribbean is much nicer than Thailand.

other wise just boom boom.

[MockingJay]

The Chinese will implement their very own shops, hotels, tour operations, buses, mafia structures, etc. and Thailand will not get a penny from their so called "quality tourists" as soon as all is in place. Congratulations Thailand - another step towards the cliff!

[LivinginKata]

The Chinese will implement their very own shops, hotels, tour operations, buses, mafia structures, etc. and Thailand will not get a penny from their so called "quality tourists" as soon as all is in place. Congratulations Thailand - another step towards the cliff!

Thai people will still need to be employed as drivers, shop assistants, hotel staff. And let's hope these businesses pay local and central taxes. It's the private restaurants, bars, market shops that are dying off.

[MockingJay]

While other countries are targeting the huge retired expat community (and more to come) Thailand is doing what? .....

To answer your question: Thailand is doing their best to make the life of working expats and retirees as difficult as possible, while focusing on Mama soup eating, free shopping tour riding, 7Eleven loving freeloaders. If Thailand is a hub for something, then it is short term thinking (as if "thinking" would be the right word for what they do)...

[DrDave]

As already said, Chinese tourists in Phuket do not benefit the locals. They have little impact on local businesses and are bad for the island. This year's low season is worse than ever. I live in a condo with 200+ rooms. There might be 50 rooms occupied and those are people who live and work here long stay. A drive down Nanai Road will show you hotels with no people, businesses that have closed and bars devoid of customers. The only people seen are locals, and an occasional tourist. You dont see the Chinese tourists as they dont live in the area. The big tour groups of Chinese tourists are exactly what Thailand DOES NOT WANT.

I have to agree with most of this. The only businesses that seem to really benefit are BigC, 7/11 and the Jewelry tourist traps. Big C at Jungceylon does a huge trade with Chinese tourists buying up cartloads of roasted seaweed (saw one with an entire trolley filled with seaweed packets a few days ago). Take a drive out on the bypass road and you'll see the roadway jammed with Chinese tour buses at Gems Gallery. One day, I counted 15 in the parking lot, and another 5 out on the road. I suspect that a lot of the tour group revenue is being indirectly cycled back to China via the local tour companies.

One thing that did surprise me, however, is that the Chinese are starting to patronize some of the bars on Bangla. In the past, the Chinese tourists would take a quick stroll down the road, take some selfies, and then head elsewhere (just as they do at the beach). The last time we were in one of the Bangla bars with live music, it was rammed with Chinese tourists, though. Had never seen that before. They were definitely spending money, but I noticed that as a rule, they were stiffing the waitresses, leaving zero baht tips on thousand baht+ tabs.

[quandow]

I am an American. Thailand is a sh*t hole. i live here. i know. why would an American want to come here? Maybe once for the experience. To show your kids how lucky they are. the Caribbean is much nicer than Thailand.

other wise just boom boom.

I'm also a fellow countryman, and I came here about 10 years ago. That was a MUCH better time - even Soi 6 was full of playful joy. That last few times I've been down that alley, I'm accosted by angry Ladyboys and see most of the actual girls are too busy on their phones to even bother looking up to ply their trade. It's also gotten much more expensive to live here. When I first got here, Thaksin had been ousted for some time but no one seemed affected by it. THIS coup has cast dark clouds over the entire country. I don't travel anywhere without my passport in a waterproof pouch after seeing how the BiB have taken advantage of new liberties to f4ck with farangs and xenophobia has reached new levels. We see reports every week of successes or failures at immigration offices, there in just no rule of law, only the rule of the mood of the officers that day.

I wouldn't recommend ANYONE move here now. And, yes, I HAVE purchased my ticket to move.

[starkey_rich]

I have just flown down to Chumphon from Bkk.

My gate was next to the Phuket flight gate. I sat there watching the mad dash for the gate as the Phuket flight was called.

There was one westener,a handful of Thais and they rest were Chinese.

I am just glad I was not on that flight.

[bbbbooboo]

Lol.....the changing face of BS more likely