A mid-year dip in arrivals to Thailand’s main resort markets of Phuket and Koh Samui has jolted the destinations’ hotels and resorts, according to the half-year report released today by C9 Hotelworks.
The hotel consultancy firm states that in the aftermath of Thailand’s political crisis, which saw martial law and a nationwide curfew imposed in May 2014, combined international and domestic arrivals into Phuket Airport dropped by 14% year-on-year. This caused occupancy to fall 4% to 72% in the first half of the year, while room rates dropped US$6 year-on-year to US$159.
“Phuket is expected to benefit however from an extensive government-led ocean front clean up of illegal structures and an anti-corruption campaign which has resulted in a remarkable clearing of the island’s beaches,” said C9 Hotelworks’ managing director, Bill Barnett.
“However there are mounting concerns about over-leveraging of emerging mass tourism segments with potential risk from the Ukraine political crisis and rise of global oil prices which will impact price-sensitive tour business.”
Over in Koh Samui, hotel occupancy for the January-June 2014 period fell to 70%, with an average rate of US$162. The total number passenger arrivals to the island’s airport is reported to have grown “marginally”.
But there appear to be brighter skies ahead; C9’s forecast for both markets, based on feedback from hoteliers, is they expect demand to return in the second half of the year.
That said, Barnett cautioned that “there continues to be a clear and present danger about an over-reliance in Thailand’s resort markets of mono segmentation.”
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