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C9 Hotelworks Release Phuket Hotel Market Update

Author: Bill Barnett. Category: Hotels. Posted: 13th Mar 2014

Phuket's international arrivals surge 26% despite political overtones.

As Bangkok remains ever-present in the international media, Phuket International Airport has consistently increased passenger numbers since 2010. In 2013 a record high 3.2 million international arrivals were recorded at PIA amounted to a 26% year-on-year growth.

The marked increase in direct international flights to Phuket has largely insulated the destination from the negative impact of the political situation in the nation's capital. Back of sustained overseas demand this has propelled 5-year CAGR growth of 21%. Last year China and Russia lead the international markets up by 67% and 41% versus 2012.

In 2013 Phuket was able to push up average room rates with only a minimal impact on occupancy. Comparing the destination to Bali which has been hit by a massive supply increase, Phuket outperformed the Indonesian resort island in term of occupancy and rates.

Taking a forward looking view, feedback from island hotels remains positive given the dynamics of a shorter term booking horizon. Historical trading trends have shown the potential to claw back any lost business due to external events within a compressed time period.

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