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Phuket's international passenger arrivals surge despite political overtones.
Saturday, 12th July 2014
Source : C9 Hotelworks

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, amounting to a 26% year-on-year growth.

4Hoteliers Image LibraryThe 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.

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 terms 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.

2013 Trends

  • Market wide occupancy registered 74% in 2013 vs. 76% in 2012. Overall ADR in 2013 rose by 3% compared to the previous year, hitting US$147. After a slight change in occupancy and ADR, RevPAR flattened at US$110.
  • Mainland China and Russia comprised 45% of total international passenger arrivals, compared to 36% in 2012.
  • The hotel managed villa property sector has shifted from U.K. and European buyers to increasing numbers from emerging markets.
2014 Outlook
  • Eight new hotels with 971 keys are planned to open by the end of this year. In 2014 Phuket’s total hotel units are forecast to top 47,112. Development is prolific at the midscale tier, representing 51% of new supply.
  • With 10 large-scale island infrastructure projects underway, the underpass at the Central Festival intersection is scheduled to be completed first (October 2014).
  • Regional Asian travelers from Malaysia, South Korea and India will continue to grow as European visitor numbers continue to gradually diminish.
Full report

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