Connect with us

Tourism

Leading real estate consultancy says 2021 not looking good for Phuket hotels

Maya Taylor

Published

 on 

FILE PHOTO

An independent real estate consultancy is predicting a bleak year for those involved in the hotel industry on the southern island of Phuket. According to a Nation Thailand report, Carlos Martinez from Knight Frank Thailand says foreign arrivals in Phuket have plummeted by 80%, from over 5.3 million in 2019 to just 1 million in 2020.

Hotel occupancy rates on the island have nose-dived, with some hotels having to suspend operations, while others try to lure domestic travellers with steep discounts and other special offers. On July 15, the Thai government launched a domestic tourism stimulus campaign, in an attempt to get Thais travelling around the country. Domestic tourists can avail of a 40% subsidy on the cost of hotel room and airfares, but, despite this, the number of domestic travellers in Phuket has dropped by 64% year-on-year.

As the Covid-19 pandemic continued to wreak havoc around the world during the second half of 2020, the occupancy rate in Phuket’s luxury hotels dropped to just 14%. The upscale properties that decided to stay open were forced to slash their prices, with the average daily rate falling 7% year-on-year, to just 3,750 baht.

Around 24% of the island’s luxury hotels are in the Patong beach area, with 15% in Karon, 14% in Bang Tao, 13% in the Kata beach area, and 10% in Kamala. Most of these coastal areas are like ghost towns, compared to how bustling they were at the same time in 2019.

While the same goes for other tourist destinations in Thailand, there’s no doubt that Phuket is one of the hardest-hit spots. The airport has been open for domestic flights since June 2020 but recorded only 775,118 domestic arrivals in the second half of 2020, down 57% year-on-year. Domestic tourists did not stay long either, averaging just 1.8 days, making little difference to hotels on the island.

Currently, the future’s not bright for Phuket’s luxury hotels, with average occupancy expected to remain below 25% and average daily rates expected to stay low during the first half of this year. The resurgence of Covid-19 in late December, just as Thailand appeared to have successfully suppressed the virus, has not helped matters. And with China imposing restrictions that prevent its nationals travelling internationally, there is no end in sight just yet.

SOURCE: Nation Thailand

 

Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forums
🔔 Subscribe to our daily email newsletter
📺 Subscribe / Join YouTube for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

8 Comments

8 Comments

  1. Avatar

    Wolfgang Meusburger

    Tuesday, February 16, 2021 at 11:14 am

    hope nobody has to pay for this report!!!

    • Avatar

      Issan John

      Tuesday, February 16, 2021 at 11:28 am

      Investigative reporting at it’s best – who’d have guessed? 😮

      • Avatar

        J West

        Tuesday, February 16, 2021 at 11:35 am

        All due respect to KF analysts but…” One million” foreign tourists to Phuket in 2020???? Weren’t the last national numbers around 1200 per month range? Correct me if I’m wrong.

        • Avatar

          EdwardV

          Tuesday, February 16, 2021 at 11:43 am

          The 2020 numbers would have included half of the high season (Jan and Feb), and whoever stuck around till the hotels shut down. The entire country had 6.9M international tourist for 2020, with 6.7M being those who came in the first three months.

  2. Avatar

    Joe

    Tuesday, February 16, 2021 at 11:31 am

    The lack of vaccinations doesn’t help either.

  3. Avatar

    Ian

    Tuesday, February 16, 2021 at 5:27 pm

    I’ll give you an exclusive thaiger 2022 ain’t looking that good either and all the squalor and misery it will bring to millions of poor thais if quarantine isn’t lifted you can buy me a beer I’ll not charge you for that exclusive 555

  4. Avatar

    Jim kelly

    Tuesday, February 16, 2021 at 9:57 pm

    hEYYYYYYYYYY!!!!! Nooooooo SHIT SHERLOCK!!!!

  5. Avatar

    Spanky

    Wednesday, February 17, 2021 at 11:56 pm

    Thailand is doomed if they keep holding to “zero” infection policy. 70 dead of 70 million is a joke, right? One out of a million will die…omg, the humanity. Thailand is a transit point for many like me. A month in and I’m out to somewhere else. The problem is that no in SE Asia is taking the lead. Malaysia, Singapore, Indonesia — all basically holding to zero infection policy. It will never happen. There will never be zero infections.

Leave a Reply

Your email address will not be published. Required fields are marked *

A seasoned writer, with a degree in Creative Writing. Over ten years' experience in producing blog and magazine articles, news reports and website content.

Follow Thaiger by email:

Coronavirus (Covid-19)5 mins ago

CCSA considers extending restrictions in “dark red” zones for another 14 days

Thailand43 mins ago

Fake dead bodies used in Phuket protest, police plan real investigation

Best of48 mins ago

Top 5 adventure tours in Chiang Mai

Sponsored1 day ago

Experience Phuket’s Islands with 5 Star Marine

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

Best of49 mins ago

Top 5 affordable hotels in Chiang Mai

Coronavirus (Covid-19)2 hours ago

Friday Covid Update: 17,345 new cases; provincial totals

Thailand2 hours ago

Prayut offers his sympathies, teases restrictions

image
Join the conversation on the Thaiger Talk forums today!
World3 hours ago

China’s national anthem possibly booed in Hong Kong, police investigate

Best of3 hours ago

Patong Beach’s 10 most popular hotels

Singapore6 hours ago

Survey shows Singaporeans making travel plans as country eyes re-opening

Thailand6 hours ago

Media banned from spreading fake/distorted news, violators could have internet cut

Coronavirus (Covid-19)6 hours ago

21 of yesterday’s Covid-related deaths died at home

Best of6 hours ago

Top 5 shopping malls Phuket

Coronavirus Vaccines7 hours ago

11 charged for allegedly selling fake Bang Sue vaccination appointments

Koh Samui7 hours ago

Samui re-opening plans under threat as island infections rise

Thailand7 hours ago

Field hospital set up in Phuket Rajabhat University for Covid-19 patients

Thailand5 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism5 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket5 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism5 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand5 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism5 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand6 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand6 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand6 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand7 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand7 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand7 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand7 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand7 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand7 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Trending