Phuket foreign arrivals rebound in July as hotels face pressure
More than 379,000 foreign travellers arrived in Phuket by air in July, but hotels face weaker spending, rising competition and possible occupancy below 60% in the third quarter.
Phuket recorded more than 379,000 foreign arrivals by air in July, a year-on-year recovery that signals an improving tourism market, according to Travel Link data cited by the Thai Hotels Association's southern chapter.
The data showed improvement in major markets including China, Russia, Saudi Arabia and Israel, while South Korea remained stagnant.
Somjai Tungkoo, vice-president of the Thai Hotels Association's southern chapter, said tourists were returning as international flights resumed in the third quarter, with China, Australia and the Middle East among the sources of inbound passengers as the Middle East conflict eased.
However, she said expanding hotel supply over the past few years, including properties she described as illegal, could prevent hotels from benefiting fully from the recovery. Average occupancy across hotels could fall below 60% in the third quarter, lower than last year, she said.
Higher airfares and travel costs could also discourage tourists from spending during their trips. Hotel operators are responding by adding value to their services, including special packages and activities linked to travellers' trips, Ms Somjai said.
Thanawat Ongcharoen, vice-president of the Phuket Tourist Association, said the tourism sector should recover steadily during the fourth-quarter high season if there is no severe escalation in the Middle East. He expected the final quarter to perform as strongly as last year, driven by demand from long-haul tourists.
Mr Thanawat said hotels were unlikely to raise room rates by a double-digit percentage because of persistent global economic uncertainty, inflation and rising costs. Ms Somjai also said hotels were unlikely to raise rates to the same levels as in the previous two years.
He identified Thailand's revised visa-free rules as another challenge, particularly for markets such as Uzbekistan that emerged during the 60-day visa-free scheme. From 15 September, Uzbek tourists will be required to apply for tourist visas in advance, which could affect travellers who booked trips in previous months. The Phuket Tourist Association plans to raise the issue with the government and request eased visa requirements for the market, Mr Thanawat said.
