The tourism sector in Phuket is benefiting from a surge in foreign travellers and quality, luxury hotels, according to Carlos Martinez from the real-estate firm Knight Frank.
During the first half of the year, Phuket welcomed 4.3 million tourists. Although this is a 7% decrease compared to pre-pandemic days, foreigners accounted for 2.6 million, a 42% increase year on year, and similar to numbers seen pre-Covid.
Martinez credits a 34% year on year increase in international flights, although the volume is still 14% lower than pre-pandemic times.
Most of the foreign visitors arriving are from Russia, followed by China. There has also been a significant increase in arrivals from India and Australia. Hotel occupancy stands at an average of 84%, a 3% year on year increase, and a 2% increase compared to the pre-pandemic period.
“The occupancy rate exceeded 90% in January and February, before declining to 74-75% in May and June.”
According to a Nation Thailand report, there has been a 32% year on year increase in the average room rate, at 6,837 baht. This is a 64% increase compared to pre-Covid, which Martinez says is due to the increase in luxury hotels on the island. Another 5 hotels are expected to open this year, adding 1,117 rooms to Phuket’s capacity.
Martinez is optimistic that there will be a further increase in the number of foreign travellers coming to Phuket during the remainder of 2024, pointing to the weakening baht, visa-exempt entry, and recovery of the aviation sector.
“Phuket is expected to welcome 2.5 million to 2.7 million foreign tourists in the second half of this year.”
It’s not all plain sailing however, with Martinez warning that Phuket’s rising land prices and operation costs present an obstacle for hotel development, which will have a knock-on effect on occupancy rates.
SOURCE: Nation Thailand
