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Phuket hotel occupancy rates rise, as room rates drop

Phuket hotel occupancy rates rise, as room rates drop

Tourism arrivals to Thailand, and occupancy rates in Phuket, both rose for the usually poor-performing month of October, but the increases came as room rates were slashed, pulling down the average daily rate by more than 5% year on year, reports tourism and hospitality market research consultants STR.

By The Phuket News

Sunday 1 December 2019, 11:00AM

Tourist arrivals so far for November show 38.16% growth year on year. Image: TAT Intelligence Centre

Tourist arrivals so far for November show 38.16% growth year on year. Image: TAT Intelligence Centre

Phuket saw occupancy improve by 5.5% year on year to an average 65.6% in October 2019, STR noted in its latest report for the Asia-Pacific region.

Yet, based on local currency, the average daily rate (ADR) declined 5.5% to B2,813.53.

Revenue per available room (RevPAR) also declined by a marginal 0.3% to B1,846.25, the agency noted.

STR analysts note that group demand (+40.3%) drove the lift in occupancy, while demand in the transient segment fell 1.8%, explained TTR Weekly in its report.

“Hoteliers may have reduced rates due to the appreciation of the baht and a more competitive marketplace with a 3.1% rise in room inventory from last October,” the report added. (See story here.)

The STR Asia-Pacific report comes hot on the heels of the Ministry of Tourism & Sports (MoTS) releasing its tourism arrival statistics for October, which reported a 12.51% increase in arrivals to the Kingdom, from 2,704,002 in October last year to 3,042,282 in October this year.

Of those, Phuket International Airport this October welcomed 409,316 international arrivals along with 11,299 Thai nationals, bringing the total inbound arrivals to Phuket to 420,615.

National tourism revenues for October also grew, by 9.27%, from B135.263bn last year to B147.801bn, reported the MoTS.

Chinese arrivals to Thailand marked a 27.81% increase year on year, from 646,583 in October 2018 to 826,392 in October this year.

Tourism revenue from Chinese visitors for October also jumped by +22.96% year on year, from B32.647 billion to B40.143bn, reported the MoTS.

However, arrivals and tourism revenues from all major European markets continued to fall.

Tourism arrivals from France fell 1.22% from 52,067 to 51,434, with a larger than corresponding drop in tourism revenues generated, falling 6.87% from B3.216bn to B2.995bn.

Likewise, arrivals from Germany fell 3.17%, with a 7.68% plunge in spending, from B4.124bn to B3.807bn

Of all the Scandinavian source markets, only Finland showed a marginal increase in the number of arrivals (+0.81%), but with a 5.15% fall in spending.

Arrivals from Sweden fell 2.66%, with a 6.83% fall in spending from B1.398bn to B1.302bn

Denmark and Norway followed suit, with 0.62% fewer Danes arriving in Thailand during the month, with 5.92% fall in spending, and 1.27% fewer Nords landing in the Kingdom, spending 5.51% less than they did a year ago.

Tourist arrivals from Russia showed steady growth (+5.41%) rising to 106,693 for the month, but showing a 1.51% increase in spending, from B7.7bn last year to B7.816bn this year.

The India source market continued its boom, with arrivals for October rising 37.9% year on year, from 117,448 in 2018 to 161,961 this year.

In terms of tourist spending, Indian arrivals have now overtaken arrivals from the UK, with Indians spending B7,640bn during the month, an increase of 35.72% year on year, reports the MoTS.

In comparison, arrivals from the UK for October rose 2.22%, but spending fell 3.42% to B5.242bn

Tourist arrivals from Australia continued to fall, dropping 5.23% year on year to 67,857, with a 9.7% fall in spending, from B5.119bn last year to B4.622bn this year.

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Kurt | 01 December 2019 - 11:16:33

All figures, percentages provided by Thai institutions is with purpose of 'self-marketing'. Take it with large spoon of salt. Actually there is always hanging a veil of hiding reality when you compare it with reality around you on Phuket. Previous prestige 4-5 star hotels now check groups in for 1-2 nights for 2 star hotel prices. Just to fill rooms and not sink in debts.

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