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C9 Hotelworks Reports Demand Shifts for Phuket Tourism Market

Feb 20, 2013


Consulting firm C9 Hotelworks has issued a report that reveals shift demands toward Thailand’s malls and urban areas, and away from the shores. According to C9 managing director Bill Barnett, the Thai sector to watch is the expansion of off-beach demand generators.

2012 research by C9 shows that tourism spending towards major Phuket shopping malls accounts for 73 percent of the market share of island attractions. Research also shows that Phuket visitors spend 30 percent on accommodation and 24 percent on retail shopping. Central Festival and Jungceylon mall saw an influx in 2012 of overseas tourists—particularly Russians, Australians, and Chinese visitors—to correlate with the 2012 influx of international airport arrivals, according to the report.

“Hot on the heels of a rising Asian middle class and the resurgence of a prolific group travel segment is that Thailand's resort markets are becoming urbanized playgrounds,” says Barnett. “It's not just about the beach anymore as shopping and attractions are gaining momentum as strong demand catalysts.”

With over 9.5 million passengers processed in 2012 through Phuket International Airport, traffic volume exceeded the airport’s stated capacity by 47 percent. Also compounding this was a 13 percent surge in year on year growth.

Driven by airlift demand, Phuket’s hotels saw 2012 market-wide occupancy reach 76 percent and an average rate of $142. Patong experienced the strongest occupancy demand, while luxury brands grew by 9 percent.

C9 reports that some concern still exists about the incoming supply pipeline of over 4,000 new hotel rooms between 2013 and 2016. 






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