AN INCREASE in the number of visitors to Phuket in 1H2015 has not boosted occupancy or spend, according to C9 Hotelworks’ latest Phuket Mid-Year Hotel Market Update.
Aided by a revitalised Phuket International Airport, passenger arrivals grew 11 per cent from 2.8 million in 1H2014 to 3.1 million in 1H2015. However, neither room rates nor RevPAR surged as a result.
Market-wide occupancy slid to 71 per cent while average room rates fell from US$175 to US$154, resulting in a significant drop in RevPAR from US$126 to US$109, states C9 Hotelworks in the same report.
While most traffic originated from direct flights from China, recent wobbles in the Chinese economy has resulted in an inability for room rates to continue the uptrend.
Bill Barnett, managing director of C9 Hotelworks, told TTG Asia e-Daily that the more important underlying factor is the absence of longer-staying Russian tourists due to the depreciation of the rouble.
“The average length of stay for mainland Chinese is 2.2 to 2.6 days while Europeans stay considerably longer,” said Barnett. “The Russians stay 12 days for package tours. Shorter stays mean you are constantly chasing your tail to grow.”
Another problem flagged by Barnett is availability of alternative sources of accommodations in nearby Andaman Islands as well as from unofficial sources.
“There is a large issue with unregistered condos and villas. It is taking up considerable market share and the government needs to address this issue as it did serviced apartments in Bangkok a few years ago,” he added.
