Categories: Travel

Phuket’s Tourism Market Shows Signs of Recovery by 2024

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Phuket’s Tourism Industry Shows Strong Signs of Recovery in 2024

Phuket, Thailand – The tourism industry in Phuket is on the path to recovery, with airport passenger arrivals steadily increasing towards pre-pandemic levels, according to a recent report by consulting group C9 Hotelworks. While last year saw 7 million arrivals, it still fell short of the 9 million mark set in 2019. However, the trend is promising, with 1.62 million arrivals recorded in February this year, compared to 1.77 million in the same period in 2019.

One of the key factors driving this recovery is the gradual recuperation of the Chinese market, with last year’s figures reaching 650,000 arrivals, a significant improvement from the previous year but still below the 2 million arrivals pre-pandemic. The recent introduction of visa exemptions for Chinese tourists and increased flight connectivity are expected to further boost these numbers.

Moreover, regional Southeast Asian markets are outperforming previous records, with Singapore’s arrival numbers doubling and Malaysia experiencing a 67% increase. These statistics highlight the potential of short-haul tourism in a world adapting to post-pandemic travel norms.

The hotel sector in Phuket is also experiencing a positive trajectory, with hotel occupancies reaching nearly 78% in 2023. The Average Daily Rate (ADR) has seen a significant increase, climbing 43% from the previous year. This growth is not only attributed to returning tourists but also to Phuket’s ability to attract a higher-spending demographic.

While the development pipeline for new hotels has slowed, there are still 19 projects with 3,719 keys in the market, with branded properties representing 91% of the pipeline. The incoming supply has been reduced by over 50%, as the real estate market in Phuket has seen a surge in land costs and an overheated property sector. Many hotel owners and developers are now focusing on conversions and renovations to meet the changing demands of the market.

Team@GQN.