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Phuket leads Thailand's tourism back to boom levels

Wednesday, 25 August 2010

Phuket is leading Thailand's dramatic tourism recovery in 2010, though the true impact of a shift in its tourist profile is yet to be seen.

Passenger traffic through Phuket International Airport increased 28 percent in the first half of 2010 compared to the same period in 2009, according to a report from C9 Hotelworks. Driving the tourism surge to the pre-economic crisis levels of 2007 was a shift in tourist profile.

"Market dynamics are evolving with a game-changing shift in tourist profile from a historical Eurocentric dependence on long haul European visitors to short haul Asian travellers," C9 Hotelworks Managing Director Bill Barnett said.

"Driving this trend is the weakening of the euro and pound sterling which have jolted market sentiment and transformed travel patterns to the resort island destination."

The favourable forex for proximal tourists has translated to a jump in airline passenger traffic of 1.74 million in the first half of 2010 compared to last year. Year-on-year data over the past five years revealed that passenger volumes had hit the boom levels of 2007.

The tourism boom has the hospitality industry bullish after recent local and international incidents had stymied growth. Hotel occupancies rose from 61 percent in the first half of 2009 to 70 percent in the same period of this year, Mr Barnett said. However, this came at a cost of average room rates, which were down nine percent.

"The latter part of this year's third quarter is seeing positive pick up in the market, which is a good sign given that it is traditionally low season on the island," Chairman and CEO of Minor Group International Bill Heinecke said.

"Following recent events and low season demand...we are delighted to see that we have better results than last year. With regards to the fourth quarter, we have already seen positive signs for strong bookings coming in for October, November and December, so we remain positive that there will be 15 percent year-on-year growth."

The political crises in Bangkok during April and May caused a 38 percent drop in the second quarter of 2010, but their effect on the hotel industry was offset by the tourist high season and increasing direct international flights, Mr Barnett said.
Source = e-Travel Blackboard: C.C
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