Phuket’s tourism industry is experiencing a strong recovery, with the island welcoming 4.3 million visitors in the first half of the year. While overall visitor numbers remain 7% below pre-Covid-19 levels, the surge in foreign tourists has been significant. International arrivals reached 2.6 million, marking a 42% increase year on year and approaching pre-pandemic levels.
Foreign Visitors and Flight Growth Signal Recovery
According to the real-estate consultancy Knight Frank, the resurgence in tourism is also reflected in the growth of international flights to Phuket, which increased by 34% year on year. However, flight volumes remain 14% below pre-pandemic figures. According to Carlos Martinez, Director of Research and Consultancy of the company, the continued recovery of air transport will be essential to sustaining Phuket’s tourism growth throughout the rest of the year. “Enhancing air transport capabilities is expected to drive further expansion in tourist numbers,” he said.
Martinez also highlighted that most foreign visitors to Phuket came from Russia, with China serving as the second-largest source despite its ongoing economic slowdown. There was also notable growth in tourists from India and Australia, contributing to the island’s diverse influx of international travelers.
The increase in foreign arrivals has had a positive impact on Phuket’s hospitality industry. Hotel occupancy rates have risen to 84%, representing a 3% year-on-year increase and a 2% improvement over pre-pandemic levels. The island experienced a particularly strong start to the year, with occupancy rates exceeding 90% in January and February before falling to around 74-75% in May and June, likely due to the seasonal tourism trend.
Related article: When is the Best Time to Visit Phuket
Phuket’s hotels are also benefiting from a surge in room rates. The average room rate has now reached 6,837 baht, reflecting a 32% year-on-year increase and a striking 64% rise compared to pre-pandemic prices. Martinez attributed this upward trend to the growing number of luxury hotels on the island, which have driven demand for higher-end accommodations.
Looking ahead, Phuket’s tourism sector is expected to expand further. Five new hotels with a combined total of 1,117 rooms are set to open by the end of the year, adding to the island’s existing 44,838 rooms. Martinez remains optimistic about the remainder of 2024, citing several favorable factors that could drive more international arrivals. These include the weakening of the Thai baht, the ongoing recovery of the aviation sector, and Thailand’s free visa policy, which is particularly attractive to foreign tourists.
Martinez also pointed to the geopolitical landscape, suggesting that global tensions, such as the Russia-Ukraine conflict, could indirectly boost Phuket’s tourism numbers. He projects that the island could see between 2.5 million and 2.7 million foreign visitors in the second half of the year, which would further enhance hotel occupancy rates and drive continued growth in the hospitality sector.
However, Martinez cautioned that certain challenges could slow the development of new hotels and impact future occupancy rates. Rising land prices, coupled with increasing operational costs due to inflation and higher interest rates, may pose obstacles to the long-term growth of Phuket’s tourism infrastructure. Despite these concerns, Martinez remains confident that the island’s tourism industry will continue to flourish in the near term, buoyed by strong demand from international travelers and a recovering hospitality sector.
With luxury hotels leading the charge and foreign visitors returning in large numbers, Phuket is set to maintain its status as one of Southeast Asia’s premier travel destinations.
Please check out more News & Updates for more interesting topics.
–
Featured Image by cuddlynest.com
