Hotel prices slashed and quiet beaches, Phuket faces challenging high season

[rooster59]

Hotel prices slashed and quiet beaches, Phuket faces challenging high season

 

Image: Patong beach, Phuket. File photo

 

At a press conference held two weeks ago on Patong Beach, Phuket tourism officials announced the official start of the tourist high season. 

 

While it was recognised that hotel room reservations in Phuket had been 10-20% lower so far this year compared to last, officials said this upcoming high season was expected to be as busy as ever.

 

Kongsak Khuphongsakon, head of the Southern Thai Hotel Association, told Manager Online that Phuket has an estimated 2,000 to 3,000 hotels, with between 100,000 and 150,000 hotel rooms catering for tourists of all budgets.

 

Mr Kongsak predicated occupancy room rates will hit 90 percent with tourists from Europe, Asia, Thailand, and even China still expected to visit in large numbers.

 

Yet a report earlier this week painted a different picture of what the near future holds for Phuket’s tourism industry.

 

With the island struggling to recover from a plunge in tourist arrivals from China, the US trade war and the surging Thai baht, hotel rooms have been left vacant and beaches sparse, AFP reported.

 

According to the report, hoteliers have been forced to slash hotel rooms prices by as much as 50 percent.

 

Mr Kongsak, who is also director of the Vijitt Resort later admitted to AFP that with that hoteliers now face a huge challenge to fill the island’s abundance of hotel rooms. 

 

And the lack of foreign tourists hadn’t gone unnoticed by other foreigners visiting Phuket.

 

AFP also spoke to Paul Scott from Australia, who said he has been coming to Thailand for 15 years, said: “I’ve never seen anything as bad as what it is at the moment.”

 

But it isn’t all bad.

 

Marketing campaigns, increased flights and visa fee travel have all helped to attract large number of Indian tourists to Phuket and elsewhere in Thailand.

 

Two million Indians are now expected to visit Thailand this year, an increase of 25 percent year on year.

 

According to Mr Kongsak, Indians are now being counted on to revive Phuket’s tourism sector.
 

-- © Copyright Thai Visa News 2019-10-26

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[Scot123]

OMG! Why can they not just come out and say it, the high Baht and very bad reputation has and is causing this crisis not only for the big hotels but everyone who is connected in anyway to tourist income. The downward spiral should not be measured year on year mut maybe should be measured from the day democracy was stolen at the end of a gun. I am sure that would paint a far worse picture. The damage really took grip with the closer of establishments for several months, the disinfectant of places character. These all a play part and the high Baht which stops foreign tourists coming but also increases the high end Thais to holiday in foreign countries. 

[jollyhangmon]

16 minutes ago, rooster59 said:

According to Mr Kongsak, Indians are now being counted on to revive Phuket’s tourism sector.

 

...  ... really?! Well, good luck with them ... 

[Mavideol]

25 minutes ago, rooster59 said:

Kongsak Khuphongsakon, head of the Southern Thai Hotel Association,

 

25 minutes ago, rooster59 said:

Mr Kongsak predicated occupancy room rates will hit 90 percent with tourists from Europe, Asia, Thailand, and even China still expected to visit in large numbers.

the guy is with TAT, what else to expect from him....

[Mavideol]

9 minutes ago, Scot123 said:

OMG! Why can they not just come out and say it, the high Baht and very bad reputation has and is causing this crisis not only for the big hotels but everyone who is connected in anyway to tourist income. The downward spiral should not be measured year on year mut maybe should be measured from the day democracy was stolen at the end of a gun. I am sure that would paint a far worse picture. The damage really took grip with the closer of establishments for several months, the disinfectant of places character. These all a play part and the high Baht which stops foreign tourists coming but also increases the high end Thais to holiday in foreign countries. 

you didn't realize yet, they are in complete denial.....

 

Yet a report earlier this week painted a different picture of what the near future holds for Phuket’s tourism industry.

 

 

[4evermaat]

29 minutes ago, rooster59 said:

Yet a report earlier this week painted a different picture of what the near future holds for Phuket’s tourism industry.

 

With the island struggling to recover from a plunge in tourist arrivals from China, the US trade war and the surging Thai baht, hotel rooms have been left vacant and beaches sparse, AFP reported.

Ok.  All you "Patong is Dead" and "Patong - The Wake" people finally have your "I told you so" article.   

 

So what are you waiting for?  

[PatOngo]

5 minutes ago, Mavideol said:

you didn't realize yet, they are in complete denial.....

But December is luck-eeee!

[Isaanbiker]

15 minutes ago, jollyhangmon said:

 

...  ... really?! Well, good luck with them ... 

Why? 20 Indians in a one bedroom will do the trick. 

[SteveK]

33 minutes ago, Scot123 said:

Why can they not just come out and say it, the high Baht and very bad reputation has and is causing this crisis 

Because all of the people in power in Thailand have millions and millions of baht in the bank. They can reap the rewards of the inflated currency by buying investments and properties overseas at a huge discount whilst the baht stays propped up. If the baht drops, so does their apparent wealth when they travel abroad to buy their Bentleys, Rolexes and apartments in Paris and London.

 

Hence they don't want to blame the baht, they will blame everything else for as long as possible to keep the house of cards propped up. They obviously put their personal wealth at a higher priority to the economic prosperity of the country, but that shouldn't come as a surprise to anyone who lives in Thailand and has seen the god-like reverence in which the super-rich elite are held.

[FarFlungFalang]

5 minutes ago, SteveK said:

Because all of the people in power in Thailand have millions and millions of baht in the bank.

Sorry SteveK but you've misspelt Billions.

[madmen]

41 minutes ago, 4evermaat said:

Ok.  All you "Patong is Dead" and "Patong - The Wake" people finally have your "I told you so" article.   

 

So what are you waiting for?  

Yep after 27 years of patong is dead threads they can finally at last say "we told you so" ????

[Inn Between]

I've never known a Thai so say anything favourable about people from India and have actually heard many of them say they all "smell". So, I wonder how the general population and Thai business people who cater to the tourism industry feel about the the TAT wooing them to replace tourism revenue lost from other nationalities. I suspect an influx of their fresh money will help change (outward) attitudes greatly.  

[the guest]

Don't know any one of my friends coming to Thailand this year. You can tell white lies, but the facts speak for themselves. 

[SteveK]

I've kept in touch with many of the people whom I have met here over the years, enjoying the occasional meet-up. It seems none are planning to come anytime soon. Strange that Thailand's tourism industry is pinning it's hopes of recovery on one of the most penny-pinching peoples on the planet. Sounds like a load of hot air to me. Anything to keep hopes up and to continue deflecting the blame away from the very obvious currency problem.

[Phuketshrew]

1 hour ago, rooster59 said:

Kongsak Khuphongsakon, head of the Southern Thai Hotel Association, told Manager Online that Phuket has an estimated 2,000 to 3,000 hotels, with between 100,000 and 150,000 hotel rooms catering for tourists of all budgets.

How can they give accurate occupancy figures when they don't even know how many hotels there are?

[maddox41]

8 hours ago, Inn Between said:

I've never known a Thai so say anything favourable about people from India and have actually heard many of them say they all "smell". So, I wonder how the general population and Thai business people who cater to the tourism industry feel about the the TAT wooing them to replace tourism revenue lost from other nationalities. I suspect an influx of their fresh money will help change (outward) attitudes greatly.  

True if you ask a thai who don't you like from  foreign countries  its India with a bullet the smell Chinese they are rude... 

[maddox41]

I have been trying to open a business in Patong for  yrs but with the crazy rents the key money the insane prices they want for a old worn out restaurant to buy add no water no electric add the tight Chinese tourist and the prickly Russians  maybe its a blessing  I never found a place as its dead and I be broke by now 555

[ineedadvice]

I have been trying to open a business in Patong for  yrs but with the crazy rents the key money the insane prices they want for a old worn out restaurant to buy add no water no electric add the tight Chinese tourist and the prickly Russians  maybe its a blessing  I never found a place as its dead and I be broke by now 555

Someone I don't personally know but just heard his story , lost 5 million baht in opening a bar/restaurant and eventually had to go back to India after losing all the money.

Off course his thai girlfriend cheated him along with other Thais.

Sent from my Redmi 7 using Thailand Forum - Thaivisa mobile app

[scottiejohn]

12 hours ago, Phuketshrew said:

How can they give accurate occupancy figures when they don't even know how many hotels there are?

I thought every establishment with 4 or more rooms needed to be licensed. If that is so why can they not quote the figures for those establishments and give an estimate of the “under the radar” establishments as well?

If they did that then we could put a little bit of faith in their figures but not on those wide estimates drawn from the clouds.

[Truthhurts]

15 hours ago, Scot123 said:

OMG! Why can they not just come out and say it, the high Baht and very bad reputation has and is causing this crisis not only for the big hotels but everyone who is connected in anyway to tourist income. The downward spiral should not be measured year on year mut maybe should be measured from the day democracy was stolen at the end of a gun. I am sure that would paint a far worse picture. The damage really took grip with the closer of establishments for several months, the disinfectant of places character. These all a play part and the high Baht which stops foreign tourists coming but also increases the high end Thais to holiday in foreign countries. 

Bad reputation???

Oh please.

Bet you cant sleep at night unless the light is kept switched on

[marin]

All of the southern islands are killing themselves this year. Last years high season was down, then the off season went to hell as well. So what do they do?  Double all the room prices over last years high season rates on booking sites. It was amazing to look at. The same hotels my family and friends visited last year on Phuket, Raillay and Phi Phi wanted more than double. So I called down direct expecting to get a better rate. "Have to raise our prices we are going to be full", was the reply.  Gave up.  Let them perish, places I have been visiting for years.

 

Checked up north Chiang Rai and the surrounding mountains for a road trip. Prices are way down. So I called and asked why. " We need guests we have had a terrible year, come on up and we will give you another 20% off. So we are booked. Chiang Rai, Pu Chee Fah, Chaing Khang, Mae Sai, and Doi Tung.  Nice little trip.  Hope some of the losers in the south wake up...

[AhFarangJa]

14 hours ago, SteveK said:

Because all of the people in power in Thailand have millions and millions of baht in the bank. They can reap the rewards of the inflated currency by buying investments and properties overseas at a huge discount whilst the baht stays propped up. If the baht drops, so does their apparent wealth when they travel abroad to buy their Bentleys, Rolexes and apartments in Paris and London.

 

Hence they don't want to blame the baht, they will blame everything else for as long as possible to keep the house of cards propped up. They obviously put their personal wealth at a higher priority to the economic prosperity of the country, but that shouldn't come as a surprise to anyone who lives in Thailand and has seen the god-like reverence in which the super-rich elite are held.

Exactly SteveK, hit the nail on the head. This is was I have been telling the Wife when she moans there are no customers in her bar. The old Thai facade of not apportioning blame to anyone is finally crumbling however, and she is agreeing with me, along with the caveat "But what can we do, they have the power".

[MRToMRT]

15 hours ago, rooster59 said:

According to the report, hoteliers have been forced to slash hotel rooms prices by as much as 50 percent.

Well I have been looking on Agoda and Booking.c and I cannot see any reductions. 

[LomSak27]

More Fake News from those nattering Nabobs of Negativity. If you go over to Thailand News you will find the truth;

 

Quote

 

Tourist numbers well on track statistics show

By The Nation

 

 

Do NOT Believe Fake News. Everything is going to be OK. Rest Easy Gentle Thai Visa dwellers.

[Bundooman]

15 hours ago, 4evermaat said:

Ok.  All you "Patong is Dead" and "Patong - The Wake" people finally have your "I told you so" article.   

 

So what are you waiting for?  

Superiority complex-style post.

[helloagain]

15 hours ago, Mavideol said:

 

the guy is with TAT, what else to expect from him....

How the hell do they keep on sprouting <deleted>, and keep their job. What are his qualifications or did he have to pay to get his position like many do in this corrupt country. And indians are quality tourists are they 5555, please read what they get up to in their own country. A few years ago it was the Russians well never have i ever heard one say please or thankyou, infact we will rent to one. Then it was the Chinese have you seen how they eat and shout at each other when standing next to a fellow countryman, infact they are being kicked out of and not before they ruined Sihanoukville Cambodia, how its the indians turn, we shall see, lock up your kids. I only say whats been reported in non gov: controlled papers. 

[yellowboat]

It was just yesterday they said tourism numbers were on track.  Things change quickly in the land of smile and denials. 

[thaistocks]

What about the Visa hazels to long term stayers? Why is this not mentioned, or did I miss it (?), its policies are way over the top besides often confusing, not friendly to even the many good people whom stay here and many have families here and contribute to Thailand.  Just take a look at yet another of many letters published in the BKK Post today, October 27th 2019.

 

[soalbundy]

So so, there will be a mass influx of Indians, sounds more like a threat to me.

[justin case]

som nam na ?