C9 Hotelworks Releases Mid-Year Phuket Hotel Market 2023
In the first half of 2023, Phuket experienced a resurgence, signaling a promising path toward recovery. International and domestic flights both saw significant increases, accounting for 75% of the total flights in 2022. Airlines and travelers alike are eager to reengage with Phuket’s offerings. In terms of passenger arrivals, the first half of 2023 displayed an impressive rebound, already representing 87% of 2022’s volume.
This optimistic outlook is further supported by the addition of new direct flights from China. The reopening of Chinese borders led to a timid resurgence of Chinese tourists, particularly in the second quarter. Additionally, plans announced by the new government cabinet to expand the list of visa-free countries, including China and India, could likely contribute to boosting Chinese tourist arrivals, a key factor in Phuket’s recovery.
Furthermore, investment opportunities in Phuket are on the rise due to high demand for both Hotels and Branded Residences, combined with the weakening of the Thai baht against major currencies. Foreign and Thai investors are increasingly looking to the Phuket region for their next projects.
Looking ahead, Phuket’s market is set to surpass both 2022 results and 2019 levels. As the high season approaches, there are mounting concerns over the island’s failing infrastructure. Upgrading is imperative to accommodate sustained demand. While Phuket’s tourism market continues to grow, there may be dark clouds on the horizon if badly needed infrastructure projects continue to lapse.
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