Phuket Tourism Soars with Influx of Foreign Travelers

  • 4 weeks ago
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Tourists enjoying a busy Phuket beach

Phuket, the renowned island province in Thailand, has seen a significant boost in tourism with an influx of foreign travelers. The first half of the year welcomed 4.3 million tourists, with foreign arrivals reaching 2.6 million, marking a 42% increase year on year.

Key Takeaways

  • Phuket welcomed 4.3 million tourists in the first half of the year.
  • Foreign arrivals were 2.6 million, up 42% year on year.
  • International flights increased by 34% year on year.
  • Hotel occupancy rates reached 84%, with a new high average room rate of 6,837 baht.
  • Five new hotels with 1,117 rooms are expected to open this year.
  • A weakening baht, aviation recovery, and free visa policy are expected to attract more tourists.

Surge in Foreign Arrivals

The island province saw a 42% year-on-year increase in foreign arrivals, totaling 2.6 million in the first half of the year. This surge is comparable to pre-pandemic levels, indicating a robust recovery in international tourism.

Increase in International Flights

International flights to Phuket have increased by 34% year on year, although they remain 14% lower than pre-pandemic levels. Enhancing air transport potential is expected to further boost tourism growth in the latter half of the year.

Hotel Occupancy and Room Rates

The influx of foreign tourists has positively impacted hotel operations. The occupancy rate reached 84%, a 3% increase year on year and 2% higher than pre-pandemic levels. The average room rate hit a new high of 6,837 baht, a 32% year-on-year increase and a 64% rise compared to pre-pandemic rates. This growth is attributed to the rise of luxury hotels.

New Hotel Developments

Phuket is set to benefit from the opening of five new hotels, adding 1,117 rooms to the province’s current total of 44,838 rooms. This expansion is expected to support the growing number of tourists.

Future Outlook

Several factors are expected to attract more foreign travelers to Phuket in the coming months, including a weakening baht, aviation recovery, and a free visa policy. The island province is projected to welcome 2.5 to 2.7 million foreign tourists in the second half of the year, further boosting hotel occupancy rates.

Challenges Ahead

Despite the positive outlook, rising land prices and operational costs driven by higher interest rates and inflation could hinder the development of new hotels. These challenges may impact hotel occupancy rates in the future.

Sources

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Gaël Ovide-Etienne
Gaël oversees all marketing efforts for Ocean Worldwide. He manages marketing campaigns to connect with prospective buyers, conducts research and market analysis, and leverages AI to enhance all aspects of the business. This approach ensures better and faster results for our buyers and sellers.

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