Phuket Hospitality Industry Under Pressure To Improve Performance

Over the years, Phuket was able to cash in on the influx of tourists to the islands. As result of the booming tourism industry in Thailand, big hotels like Novotel in Phuket decided to join the competitive hospitality industry. In order to be ahead of the competition, no two hotels are alike because they have to consider the changing tourist preferences.

In 2018, Phuket International Airport welcomed a record high 9 million visitors. However, according to Bill Barnett, managing director of tourism and hospitality consultancy C9 Hotelworks, performance data indicates a slowdown in the double-digit growth rates over the past few years. Airport arrivals grew by 8% year-on-year but these gains were the lowest since 2015.

The first half of 2018 saw a 17% increase in arrivals vs. the same period in 2017. However, the 2nd half of the year was affected by the Phoenix tour boat disaster that decelerated the momentum. By the end of the year, the annual hotel demand decreased by 4%. Early gains in the year were eradicated from August through October.

However, in spite of the negative sentiment within the industry on the continued drop, a soft landing happened in the final two months of the year driven mostly by rates. By the end of the year, a new normal has kicked in.

Meanwhile, JesperPalmqvist said that the recent pressure on the industry is expected to continue into the 2nd half of the year. The hospitality industry needs to increase their performance and tighten the market compared to the last 2 years. While there is new supply, there is also increased competition for Chinese demand.

Hotel performance does not only rely on macro tourism metrics but brand, location and management. There is an onslaught of other Asian destinations that are targeting Chinese tourists by offering incentives like visa-free entry.

You can experience Phuket at its finest through Novotel in Phuket, the perfect getaway for both business and leisure travellers. The 4-star hotel offers immaculate private rooms, mouth-watering cuisine and exceptional services. The hotel is ideally located just a stone’s throw away from the magnificent Phuket coastline. Book directly with the website and enjoy a 30% discount.