Connect with us

Phuket

Shorter peak season expected in Phuket

Legacy Phuket Gazette

Published 

 on 

PHUKET: Phuket is bound to experience a shorter peak season this year due to a change in the market, and it is a matter of concern for hospitality firms when it comes to the low season, says Bill Barnett, managing director of C9 Hotelworks.

“In previous peak seasons, rates or surcharges had benefited many hotels in Phuket, but this year the period will be shorter – in most cases ending after just the first few days of January,” warns Mr Barnett.

“Looking to Chinese New Year and the first quarter in general, trading is looking strong, but three months will not make up an entire year and low seasons are a cause for concern. What is evident, however, is that other Thai beach destinations like Krabi and Khao Lak, as well as some locations in Vietnam, are honing up to take on local destinations in an evolving tourism market, so competition ‘is heating up out there’,” he adds.

According to a survey by C9 Hotelworks, there continue to be many questions on the resort-island about the impact of Thailand’s crackdown on zero-dollar tourism, as the issue affects the hospitality trade on the island.

Feedback on China’s cheap packages resulted in a downturn in the fourth quarter as the rapid collapse in Chinese tour groups forced hotels into other segments, which hit replacement rates.

This new year, however, looks brighter with the new international terminal and renovations to the domestic terminal, which will be completed during the course of the year, with some progress on other infrastructure projects, Mr Barnett said.

Phuket is also expected to see some impressive major new developments, such as the BluPearl mega-retail project and Central’s expansion, moving ahead fast.

In terms of hotel supply, the Tourism Ministry has historically reported on a regular basis on the total number of registered tourism establishments in Phuket.

However, the crackdown on zero-dollar tours and unlicenced hotels has brought the matter under increasing scrutiny, with authorities having recently issued an ultimatum to hotel property owners to register their businesses.

With the ministry having broadened its own data-gathering, the total number of licenced and unlicenced hotel rooms is reported to be 81,727 as of last month.

Most hotels are seeing good numbers in all tiers, although room-rate pressure has steadily increased. January is promising by all reports, but looking further out to February and March many hotels are seeing lower pick-up compared to previous years, he added.

One interesting aspect is how Patong’s oversupply is affecting guest quality, with certain higher-end segments shifting into Kata and Karon.

The increasing supply of budget, economy and mid-scale, off-beach properties in the island’s nightlife capital is becoming a toxic mix for hoteliers, he warned.

“In 2017, we’d expect the southwest coastal hotels in Kata and Karon to improve trading and Patong to experience a possible slide in rates and demand. Chinese, Koreans and the Middle East segments are strong supports for the area,” he said.

— The Nation

 

Want more Thailand news from the Thaiger family?

📱 Download our app on Android or iOS for instant updates on your mobile
📝️ Join the conversation on Thaiger Talk - discuss news & life in our Thailand forums
📧 Subscribe to our daily email newsletter
👍 Like/Follow us on Facebook
🔔 Subscribe to or Join our YouTube channel for daily video updates

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.

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:

Hua Hin31 mins ago

Elephant that broke into Hua Hin kitchen now in memes and ads

Tourism2 hours ago

Phuket governer reviews rules, new details for July 1 arrivals

Coronavirus (Covid-19)3 hours ago

Shipment of 2 million Sinovac vaccines arrive from China

Phuket Sandbox July 1st

days
hours
minutes
seconds

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

Coronavirus (Covid-19)4 hours ago

Autopsy requested for young policeman with vaccine

Thailand5 hours ago

Despite corruption allegations, street lamp project continues in Samut Prakan

Thailand6 hours ago

Thailand News Today | Sandbox is GO, vaccine cocktails, US warning on Thai travel | June 23

Best of6 hours ago

Top 5 Provinces to visit near Bangkok

Tourism6 hours ago

CCSA gives details on “Phuket Sandbox” and “Samui Plus” travel schemes

Best of6 hours ago

Top 5 Cities to visit in Thailand

Coronavirus (Covid-19)6 hours ago

Gap between AstraZeneca vaccines cut from 16 to 12 to 8 weeks

Best of6 hours ago

Top 5 Steakhouses in Bangkok

Best of7 hours ago

Top 5 Pubs in Bangkok

Coronavirus (Covid-19)8 hours ago

Wednesday Covid Update: Daily death count hits record high; provincial totals

Coronavirus (Covid-19)9 hours ago

US is “unable” to provide Covid-19 vaccines to Americans who live overseas

Tourism9 hours ago

Sandbox could be revised, cancelled if Covid-19 outbreaks occur

Thailand4 months ago

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

Tourism4 months ago

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

Phuket4 months ago

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

Tourism4 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand4 months ago

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

Tourism4 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand5 months ago

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

Thailand6 months ago

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

Trending