TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

Phuket Hotels Lose US$300 Million in Rate Plunge

  • Industry-wide discounting by Phuket hotels cost the industry on the island US$300 million in room revenue in 2009, according to the Phuket Hotel Market Update report compiled by leading Thailand consultancy C9 Hotelworks.

    (Download the full report here)

    Room rate cuts averaged 20% across the board last year, leading to the loss compared to 2008 room revenue. Despite tourism arrivals rebounding back to 2007 levels, a key blow to fundamental hotel metrics hit profit margins.

    C9 Hotelworks Managing Director Bill Barnett, author of the report, said “the 2 P’s – pricing and pool villas – represented dynamic drivers as average room rates and revenue available per room (RevPAR) declined.

    “Bottom lines have been hit as hoteliers scrambled to induce demand and meet increasing consumer pressure for lower rates. Virtually every chain scale tier was affected with the exception of the budget and economy segment,” Mr Barnett said.

    The Phuket Hotel Market Update summarized that 2.9 million tourist arrivals visited Phuket in 2009 with a island-wide average occupancy of 64%. Average rates and revenue per occupied room slumped by 20% and 22% versus 2008.

    Investment has been hit with the suspension of significant projects due to economic and political concerns shrinking 19% of the new hotel supply. The pipeline now has 31 properties set to open over the next three years representing 4,600 rooms and equates to a 12% rise over the existing market.

    “Our research points to a positive upward trend in 2010, pairing a growing critical mass of hotels and demand drivers to capitalize on the global upswing. More Asian airlift and increased spending power from feeder markets maintains potential, while hotel oversupply could undermine long-term fundamentals if not addressed,” Mr Barnett added.

    “As Thailand continues to recover from the political driven events of late 2008 and early 2009, market confidence remains cautiously optimistic.”

Other Press Release

Read more

Phuket Hotels Fight For Their Lives As Massive Economic Fallout Expected From Failure Of Domestic Tourism To Support The Industry

Category: Press Releases, Posted:08 Sep 2020 | 10:15 am New research by consulting group C9 Hotelworks points to Covid-19’s crippling implications with airport arrivals plunging, the Phuket Model stuttering and 50,000 jobs expected to be lost if there are no overseas visitors this year For Immediate Release, 8 September, 2020 PHUKET, THAILAND Phuket’s hotel industry is reaching breaking point and drastic economic support from […]
Read more

Thailand’s tourism recovery hinged on tapping into 227 million strong domestic marketplace

Category: Press Releases, Posted:19 Jun 2020 | 08:49 am Over 1,000 travel industry participants at Thailand Tourism Forum 2020 – Special Bangkok Edition – virtual online conference   TTF 2020 Bangkok-based speakers (from left): QUO CEO, David Keen; Rosewood Bangkok Director of Sales and Marketing, Leanne Reddie; Centara Hotels & Resorts CEO Thirayuth Chirathivat; IC Partners CEO, Charles Blocker; Hotel Intel Editor-in-Chief Wimintra Raj; […]
Read more

Young, Independent, Digitally-Driven Travelers to Lead Vietnam’s Travel Reopening: China Vietnam Travel Sentiment Survey

Category: Press Releases, Posted:05 May 2020 | 10:16 am Vietnam’s global tourism ambition needs to focus on China and short-haul travel, concludes latest research. BANGKOK: Vietnam’s remarkable reopening of its domestic travel sector is expected to be replicated by focusing on short-haul Asian markets in a quest to restore their international tourism profile. The country has effectively demonstrated a Covid-19 leadership model in Southeast […]