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Chinese and Russian Travellers Account for 41% of Phuket's International Arrivals in H1 2014

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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 14% year-on-year.

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 business."

In Koh Samui, market-wide hotel occupancy for January through June 2014 achieved 70% with an average rate of US$162.

 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.

See other recent news regarding: Interviews, Pictures, Videos, C9 Hotelworks, Phuket, Samui, Arrivals, Visitor Arrivals, ADR, RevPAR

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