Phuket tourism benefiting from influx of foreign travellers
Phuket tourism is still growing thanks to an influx of foreign travellers and the increase of luxury hotels, real-estate consultancy Knight Frank says.
The island province welcomed 4.3 million tourists in the first half of this year, down 7% compared with the pre-Covid-19 period. However, foreign arrivals during the period were 2.6 million, up 42% year on year, similar to pre-pandemic levels.
The volume of international flights has increased by 34% year on year, though it was 14% lower than the pre-pandemic period.
“Enhancing the potential of air transport is expected to boost the growth in the remainder of this year,” said the company’s director of research and consultancy, Carlos Martinez.
He said most foreign travellers in Phuket came from Russia, followed by China despite the Chinese economic slowdown. Visitors from India and Australia have increased significantly, he added.
Martinez said an influx of foreign tourists benefited hotel operations with an occupancy rate of 84%, up 3% year on year and 2% compared with the pre-pandemic period.
“The occupancy rate exceeded 90% in January and February, before declining to 74-75% in May and June,” he explained.
He said the average room rate has reached a new high at 6,837 baht, up 32% year on year and 64% compared with the pre-pandemic period. This increase was thanks to the growth of luxury hotels, he said.
He expects the opening of new five hotels with 1,117 rooms will benefit Phuket tourism in the remainder of this year, adding that the province currently has 44,838 rooms.
Martinez believes that a weakening baht, aviation recovery and the free visa policy will attract more foreign travellers to Phuket in the remainder of this year, especially in the fourth quarter.
He expects foreign arrivals in the island province to increase further on geopolitical tensions, especially Russia-Ukraine conflict.
“Phuket is expected to welcome 2.5 million to 2.7 million foreign tourists in the second half of this year,” he said, adding that the influx of foreign tourists will benefit hotel occupancy rates.
He also hopes that the hotel average room rate will increase gradually in the second half based on foreign currency exchange.
Despite the positive view over Phuket tourism, Martinez warned that rising land prices and operation costs driven by higher interest rates and inflation would obstruct the development of new hotels, resulting in impacts on hotel occupancy rates.
