Phuket hotels slash prices, brace for rare slump

*Where to Eat in Phuket. PHUKET: Hotels in Phuket have been forced to slash prices with rooms left vacant and beaches sparse as tourist chiefs struggle with a plunge in Chinese visitors caused by the US trade war and a…*

Published: 2026-03-14 20:37 UTC Event date: developing

Hotels across Phuket have slashed room rates by up to 50 percent in response to a sharp drop in Chinese visitors, leaving beaches and accommodations unusually quiet during what is typically a low but steady tourism season. The downturn, attributed to the ongoing US-China trade war and a stronger Thai baht, has impacted businesses and workers throughout the island, one of Thailand’s most popular tourist destinations.

Phuket was the second most visited destination in Thailand last year after Bangkok, serving as a key indicator for the health of the country’s tourism sector. According to local tourism officials, the fall in Chinese arrivals has been particularly noticeable this year, with many hotels reporting vacant rooms even in areas that usually remain busy throughout the year.

Claude de Crissey, Honorary Consul of France in Phuket and owner of around 40 hotel rooms in the bustling Patong Beach district, said the absence of Chinese tourists has been striking. “Chinese tourists are usually present even during the current low season. That was not the case this year,” he said, noting that he has been forced to lower his prices by as much as 50 percent to attract guests.

The decrease in Chinese visitors has been linked not only to economic factors but also to lingering concerns following last year’s *Phoenix* tour boat disaster off Phuket’s coast, in which 47 Chinese holidaymakers lost their lives. The tragedy has reportedly made some Chinese travelers cautious about returning to the island, compounding the effects of broader financial pressures.

Local businesses, from hotels to restaurants and tour operators, have felt the impact of the slump. Many Phuket residents who rely on tourism for their livelihoods are facing reduced hours or uncertain income as visitor numbers drop. The quieter beaches and streets, typically bustling even during the off-peak months, have highlighted the island’s reliance on international arrivals, particularly from China.

Tourism authorities are now working to reassure travelers of Phuket’s safety and to diversify the island’s appeal to new markets. Efforts include promotional campaigns and partnerships aimed at attracting visitors from other countries. As the high season approaches, hotel operators and local officials are watching closely to see if these measures will help reverse the current slump and restore confidence among international tourists.

Source: https://www.thephuketnews.com/phuket-hotels-slash-prices-brace-for-rare-slump-73323.php