CBRE's Phuket Hotel report covering the second half of 2018 shows that overall Thailand's international tourist arrivals increased 4.1% Y-o-Y from 18.1 million in H2 2017 to 18.8 million in H2 2018. However, the number of international tourist arrivals declined 3.5% H-o-H, mainly due to the decrease of Chinese tourists after the boat accident in Phuket. The majority of Phuket's market feeders are countries in Asia and Europe.

At a glance:

• International tourist arrivals to Thailand were 18.8 million, a 4.1% increase Y-o-Y. The number of Chinese visitors to Thailand has declined for four months consecutively, decreasing Y-o-Y by 11.8%, 14.9%, 19.8%, and 14.6%, respectively starting from August to November, before recovering with December arrivals which increased by 2.8% Y-o-Y.
• According to STR Global, the overall Phuket Hotel occupancy rate in H2 2018 was 67.30% decreasing by 9.4% from last year. 
• The Average Daily Rate (ADR) for H2 2018 decreased by 9.0% Y-o-Y to THB 3,285 from THB 3,610. RevPAR also decreased by 19.3% Y-o-Y to THB 2,264 in H2 2018 from THB 2,807 in H2 2017.
• Four hotels with a total of 749 keys were opened in H2 2018 namely Hotel Indigo Phuket Patong, The Nature Phuket, Phoenix Hotel Karon Beach, Cassia Phuket (Phase 2). 
• As of H2 2018, there were 134 hotels in Phuket with a total of 23,107 keys, increasing 3.4% Y-o-Y. By 2021, Phuket’s total hotel supply will increase by 31% or 7,163 keys from 27 hotels currently under construction projects. 

The number of Indian visitors is expected to increase with the launch of new direct flights from Delhi and Bangalore in October 2018.

According to STR Global, hotel occupancy in H2 2018 was 67.30%, which fell by 9.4% Y-o-Y. ADR also decreased significantly by 9.0% Y-o-Y from THB 3,610 in H2 2017 to THB 3,285 in H2 2018 and RevPAR substantially dropped by 19.3% Y-o-Y from THB 2,807 in H2 2017 to THB 2,264 in the second half of 2018.

Looking ahead, CBRE think the tourism in Phuket should have hit the bottom after the Phuket boat incident in July and that sentiment should gradually recover from late-2018 onward. Apart from that, the rising of Indian visitors can help alleviate the tourism sentiment at a certain extent.

Click here to view the full CBRE Phuket Hotel, H2 2018 Report.

For more information about the report of the Phuket Hotel market email Rathawat Kuvijitrsuwan from CBRE Thailand via the contact details below.

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