{"id":204009,"date":"2022-04-22T03:15:00","date_gmt":"2022-04-21T20:15:00","guid":{"rendered":"https:\/\/www.ttrweekly.com\/site\/?p=204009"},"modified":"2022-04-22T05:42:51","modified_gmt":"2022-04-21T22:42:51","slug":"pandemic-fallout-strikes-phuket-hotels","status":"publish","type":"post","link":"https:\/\/www.ttrweekly.com\/site\/2022\/04\/pandemic-fallout-strikes-phuket-hotels\/","title":{"rendered":"Pandemic fallout strikes Phuket hotels"},"content":{"rendered":"\n<p>PHUKET, 22 April 2022: Thailand&#8217;s battered hotel sector is\nshowing increased signs of fatigue as the global pandemic enters its third\nyear, according to a C9 Hotelworks market update. <\/p>\n\n\n\n<p>Nowhere is this more apparent than on the resort island of\nPhuket, where over 73% per cent of new hotel developments either lay dormant or\nhave been put on hold.&nbsp; <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" data-src=\"https:\/\/www.ttrweekly.com\/site\/wp-content\/uploads\/2022\/04\/1-8.jpg\" alt=\"\" class=\"wp-image-204011 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><figcaption><em>IndiGo has restored direct flights between India and Phuket, spurring hotels to target travellers from South Asia.<\/em><\/figcaption><\/figure><\/div>\n\n\n\n<p>According to data in the newly released Phuket Hotel Market\nUpdate 2022 from C9 Hotelworks hospitality consulting, the once robust island\nhotel pipeline has owners now suffering from the \u2018fear factor\u2019 as they continue\nto reel in the wake of a volatile marketplace and unclear future outlook.\nNegative sentiment and stressed liquidity have impacted development, which has\nseen an incoming supply of 33 hotels with 8,616 rooms facing an unknown future.\n<\/p>\n\n\n\n<p>Drilling down on the pipeline data, 55% of the hotel\nprojects are mixed-use or hotel residences with rental-based investment schemes\nthat target individual investment buyers. In light of the economic climate C9\nresearch indicates that some real estate-led hospitality projects are unlikely\nto return to the pipeline. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" data-src=\"https:\/\/www.ttrweekly.com\/site\/wp-content\/uploads\/2022\/04\/phuket-hotel-market-update-600x323.png\" alt=\"\" class=\"wp-image-204045 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 600px; --smush-placeholder-aspect-ratio: 600\/323;\" \/><\/figure><\/div>\n\n\n\n<p>While glossy tourism campaigns that focus on quality vs\nquantity are the new mantra across the country, reality bites hard on an island\nthat went from hosting over 9 million passenger arrivals at Phuket\nInternational Airport in 2019 to just over 900,000 in 2021. The sizable 90%\ndecline, coupled with the fact there are already 1,786 registered tourism\nestablishments and 92,604 hotel rooms in current supply, mean empty beds that\nneed tourists. <\/p>\n\n\n\n<p>Addressing the situation, C9 Hotelworks managing director\nBill Barnett says: &#8220;Over 40% of the island&#8217;s international visitors two\nyears ago were either from China or Eastern Europe, including Russia. While I&#8217;m\nasked daily about when will Phuket recover, the truth of the matter is we are\npushing out our estimates of a cyclical return to 2025.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" data-src=\"https:\/\/www.ttrweekly.com\/site\/wp-content\/uploads\/2022\/04\/2-4.jpg\" alt=\"\" class=\"wp-image-204010 lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" \/><\/figure><\/div>\n\n\n\n<p>&#8220;The elephant in the room for the moment is China. The\nconundrum is that while I fully expect Phuket stabilized numbers to return\ngiven its favourable geographic location, tourism-oriented infrastructure, and\nairlift capacity but macro-political and economic issues are clouding the\nshort-term horizon.&#8221;<\/p>\n\n\n\n<p>Phuket led all of Southeast Asia in a remarkable effort of\nwidespread vaccinations and the pioneering Sandbox re-entry program. But a look\nat the current situation, which has seen a return to seasonal trading and\ndeparture of winter snowbird travellers dissipate, now has the island looking\nfor replacement markets. As other regional neighbours such as Vietnam, Indonesia,\nand the Philippines roll out quarantine free travel, Thailand remains\nuncompetitive, given its beleaguered Test &amp; Go process. <\/p>\n\n\n\n<p>Hoteliers in Phuket have been quick to address damage control from the Ukraine &#8211; Russia crisis, but historically most of the Russian market falls away in March. Three notable source markets that are ramping up an airlift to Phuket are Australia, India and the Middle East, which remain bright spots. However, none have demonstrated traffic to match the pre-pandemic levels of the Chinese mass market. <\/p>\n\n\n\n<p>While Phuket&#8217;s tourism-leveraged economy has survived the\nfirst two years of the pandemic largely intact, C9&#8217;s Bill Barnett says,\n&#8220;the remainder of 2022 and beyond is already seeing a rapid escalation of\nhotels coming up for sale. Most of these are not at highly distressed levels,\nbut it indicates that legacy investment sentiment in hospitality assets is\nexperiencing a changing of the guard. <\/p>\n\n\n\n<p>&#8220;The number of Thai hotel owners and foreign investors\nthat are retreating from the sector is expected to grow. C9&#8217;s opinion of the\nslowdown in the pipeline and high activity in the transaction market is this is\nnot an entirely bad thing and will likely reframe supply and demand over the\nmedium term in return for a more solid, rational and less speculative\nmarketplace.&#8221;<\/p>\n\n\n\n<p>Another change in attitude for island hotel owners was the\nwave of independent properties converting to brands. The reopening of many of\nthe highest performing properties during the Phuket Sandbox and the growth in\ndomestic travellers benefitted branded hotels. Another outcome has seen several\ninternationally managed properties converted from management to franchises.\nHotels operating under global brands and a new influx of white-label management\nwere already emerging trends pre-pandemic that accelerated during the pandemic.\n<\/p>\n\n\n\n<p>Despite the bricks and mortar reality of Phuket&#8217;s tourism\njourney back to the future, its backstory has been a large-scale exodus of\nhospitality and service staff from the industry. Given the many stops and starts,\nopening and closings of hotels and businesses, the shine of tourism&#8217;s &#8216;Amazing\nThailand&#8217; byline has been lost on a generation of workers.&nbsp; <\/p>\n\n\n\n<p>While business levels have continued to grow at moderate\nlevels, staff shortages continue to plague the industry. Perhaps the greatest\nchallenge for Phuket hotels is regaining its greatest asset \u2013 hotel staff to\nserve tourists when they return. That said, this same comment currently applies\nacross all of Southeast Asia and the world, implying doing more with less staff\nwill have to be the new tourism norm. <\/p>\n\n\n\n<p>Download C9 Hotelworks Phuket Hotel Market Update 2022 &#8211;<a href=\"https:\/\/www.c9hotelworks.com\/wp-content\/uploads\/2022\/04\/2022-04-phuket-hotel-market-update.pdf\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\"> CLICK<\/a><\/p>\n\n\n\n<p><em>(Source: C9 Hotelworks)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PHUKET, 22 April 2022: Thailand&#8217;s battered hotel sector is showing increased signs of fatigue as the global pandemic enters its third year, according to a C9 Hotelworks market update. Nowhere is this more apparent than on the resort island of Phuket, where over 73% per cent of new hotel developments either lay dormant or have [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4170,8],"tags":[],"class_list":{"0":"post-204009","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-destinations","7":"category-thailand"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pandemic fallout strikes Phuket hotels - TTR Weekly<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ttrweekly.com\/site\/2022\/04\/pandemic-fallout-strikes-phuket-hotels\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pandemic fallout strikes Phuket hotels - TTR Weekly\" \/>\n<meta property=\"og:description\" content=\"PHUKET, 22 April 2022: Thailand&#8217;s battered hotel sector is showing increased signs of fatigue as the global pandemic enters its third year, according to a C9 Hotelworks market update. 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