According to a half year report by Phuket-based
hospitality consulting firm C9 Hotelworks, a mid-year slump in
arrivals to Thailand's leading resort market's of Phuket and Koh
Samui has jolted hotel trading levels.
The research also shows that in the aftermath of
Thailand's most recent political turmoil, which saw martial law
imposed in May, the resort island of Phuket experienced a sharp
drop in visitor arrivals. This peaked in the month of June when
combined international and domestic passenger arrivals dropped by
In Phuket there was a gradual easing of the
negative trend in July and August, though compared to the same
period in 2013 the market has continued to experience contraction.
Chinese and Russian Travellers remain key sources of business in
the first half of 2104, accounting for 41% of international
arrivals, rising 6% and 14% y-o-y, respectively.
During the first half year of 2014 room night
demand retracted to 72% and room rates decelerated, leveling off
at US$159. In H1 2014, passenger arrivals at Phuket International
Airport maintained a positive 10-year CAGR growth of 13% between
2004 to 2014 and 5-year growth of 8%.
"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
In Koh Samui, market-wide hotel occupancy for
January through June 2014 achieved 70% with an average rate of
One important change for Koh Samui has
been the growing influence of the Russian market which now tops
the international arrivals list with a share12.3% of visitors.
Hoteliers in both markets are expecting static
growth for the full year as demand is expected to return in H2.
"There continues to be a clear and present
danger about an over-reliance in Thailand's resort markets of mono
segmentation, after playing to a one-trick pony is never a
sustainable long term strategy," said Bill.
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