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Market Pulse: Phuket, Thailand
Sunday, 29th March 2020
Source : Apichaya Wongsuwan, Ruj Masan, Pawinee Chaisiriroj

Following the market’s prosperity in the past few years, hotels across all segment have started to witness hindering economic growth, resulting in a softer performance in 2019.

The unexpected outbreak of COVIC-19 has swept away the majority of the demand in the market. As the number of travel advisory continues to heighten, concerns over air traffic and tourism spending are increasing among the public as people are reluctant to travel. The following article gives a brief overview of Phuket, its tourism industry, and the recent dynamics of the local lodging market.

Phuket, covering a total area of approximately 543 square kilometres, is Thailand’s largest island. Famous for its white-sand beaches, Phuket is located in the south of the country in the Andaman Sea and is connected to the mainland at Phang Nga province in the north of the island via the Sarasin Bridge.

In the past, the island derived much of its wealth from tin and rubber whereas nowadays tourism dominates as the principal industry of the island’s economy.

The majority of the beaches lie on the west coast of the island, including the notable ones at Mai Khao, Layan, Surin, Kamala, Patong, Karon, Kata, and Nai Harn. Mai Khao beach is the longest beach in Phuket, an area that has largely remained calm and peaceful thanks to its proximity to the Sirinat National Park.

The only significant landmark in the area is the Phuket International Airport, enhancing Mai Khao’s accessibility to and from the island’s main transportation hub. Layan Beach is connected to Bang Tao Beach, and it is home to Laguna Phuket, one of the first masterplan developments on the island, featuring several branded resorts, residences, 18-hole golf course, and meeting and conference facilities. Surin beach is surrounded by a number of luxury resorts and residences in the area including Amanpuri, The Surin, and Twinpalms and generally has fewer visitors as some of the beach areas are shared among the hotels and only accessible by hotel guests.

Phuket Area Overview

Source: HVS Research

Kamala Beach houses Phuket Fantasea cultural theme park, which is considered to be the island’s biggest Thai cultural live show with approximately 3,000 attendees per night. A number of international branded hotels have already planned their presence in the area, including the recently opened InterContinental Phuket Resort.

The area along Patong beach is considered to be the entertainment centre of Phuket, which is home to Bangla Walking Street and Jungceylon Shopping Centre. Karon beach is located south of Patong beach; however, it offers a quieter environment with good snorkelling spot in the southern end. Similar to Karon beach, Kata beach and Nai Harn beach are calm with limited entertainment scene.

Read the full report here

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