Connect with us


Arrivals increase as room rates slide

Legacy Phuket Gazette



PHUKET: While it’s encouraging that passenger arrivals at the island’s airport jumped by 11% during the first half (H1) of this year, compared to the same period last year, the flip side shows that hotels in all tiers tumbled with average room rates plunging from US$175 in H1 2014 to US$154, Bill Barnett, managing director of C9 Hotelworks said in his latest research.

He also points out that it was budget and economy hotels that suffered most during the slide in this year’s first half, and although occupancy only decreased slightly to 71%, the lower-average room rate led to revenue per available room dropping from US$126 in H1 2014 to US$109.

Even as passenger arrivals at Phuket International Airport jumped from 2.8 million in H1 2014 to 3.1 million in H1 2015, international passenger arrivals totaled 1,730,404 with 11,020 direct flights, which shows a 6% increase compared to H1 2014.

China topped the list of leading geographic source markets with a 37% growth in this period, while the other four key markets, Russia, Australia, South Korea and the UK, all dipped with Russia plunging 41%.

“Despite concerns over China and Bangkok, it’s likely that Phuket will continue to see a relatively high volume of redirected tourists visiting in the 2015-2016 high season.

“Unfortunately the ability of the market to drive rates upward remains the missing link,” Mr Barnett said.

However, the dimmer outlook does not seem to have deterred investors who clearly have a long-term view, as research also shows that there are as many as 27 new hotel projects coming on stream between 2015 and 2018.

The island currently has 752 licenced lodging establishments with a total of 47,475 keys. This will be increasing from the second half of 2015 to the beginning of 2018 with the expected addition of 4,400 keys. Of this, 173 keys, or just 3.9%, are existing hotel expansion projects.

Additionally, Patong has the highest concentration with 1,613 keys entering the market, Mr Barnett said.

Among the upcoming new hotels are Baba Beach Club on Natai, Phang Nga, with 162 keys, opening in Q4 2017; Centra Bangtao Resort Phuket with 170 keys and opening in 2017; Patong Bay Hill Hotel & Resort with 336 keys and opening in December this year; X2 Vibe Phuket Patong with 116 keys, opening in the final quarter of this year; and Novotel Phuket Town with 180 keys and opening in the second quarter of 2016.


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


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.

Click to comment

Leave a Reply

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

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Myanmar20 mins ago

Myanmar’s economy to shrink by 18% due to military coup and Covid-19

Singapore2 hours ago

Singapore plans to vaccinate 80%, reopen with quarantine-free travel by September

Thailand3 hours ago

Pattaya suspects arrested for live streaming breaking curfew

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!

Thailand4 hours ago

Sinovac/AstraZeneca highly effective, according to Thai research

Phuket4 hours ago

Phuket vice governor says “Sandbox” tourists aren’t scared off by Covid situation

Thailand5 hours ago

Ministry of Education seeks 21.6 billion education subsidy

Join the conversation on the Thaiger Talk forums today!
Coronavirus (Covid-19)6 hours ago

The ‘infodemic’ – interview with Helen Petousis-Harris about Covid misinformation

Best of6 hours ago

Phuket’s 8 Best Rooftop Bars

Coronavirus (Covid-19)6 hours ago

Ayutthaya logs 255 new infections, hospital beds full

Thailand6 hours ago

Another “monkey war” in Lop Buri, hundreds fight in the street- VIDEO

Thailand7 hours ago

Plantations International provides Pattaya with provisions

Coronavirus (Covid-19)8 hours ago

Monday UPDATE: 15,376 new infections, Provincial report

Thailand8 hours ago

Thai baht goes from top-performing to worst-hit currency in Asia

Coronavirus (Covid-19)8 hours ago

Covid train cancelled, SRT cites lack of passengers

Coronavirus (Covid-19)9 hours ago

Government submits proposal to allow department store restaurants to sell food online

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

Thailand6 months ago

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

Thailand6 months ago

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

Thailand6 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