Hotels in Phuket and Samui benefit from Bangkok's protests

Phuket and Samui both experienced an increase in passenger arrivals via direct flights, recording an all-time high of 3.2 million and 1.7 million visitors in 2013, respectively.

Tourists have chosen to stay away from Bangkok due to protests, resulting in a 26% year-on-year drop in hotel bookings, according to consultancy firm C9 Hotelworks. Instead, visitors are heading straight to Phuket and Samui.

“Phuket International Airport (PIA) has consistently increased passenger numbers since 2010,” says Bill Barnett, managing director at C9 Hotelworks. “In 2013 a record high 3.2 million international arrivals were recorded there, amounting to a 26% year-on-year growth.” The latest report also noted a 37% annual growth in the Samui market with 1.7 million visitors last year. The growth in tourist arrivals from Mainland China and Russia was also key factor.

Meanwhile, 8 new hotels, scheduled to open in Phuket through 2014, are expected to accommodate the growing number of regional visitors, especially from Malaysia, India, and South Korea, overtaking the number of European tourists.

The availability of low-cost direct flights to Samui has also contributed to the increasing tourist arrivals in Surat Thani Airport. Analysts predict that a limited number of new hotel projects are going be announced, whilst the existing luxury hotels on the island will continue to perform well.

“Feedback from hotels remains positive, given the dynamics of the shorter-term booking horizon. Trading trends have shown the potential to claw back any lost business due to external events within a compressed time period,” Barnett said.