Beachfront hotels in Phuket staying closed until Q4 revival

BANGKOK, May 25, 2020, Bangkok Post. Seaside hotels in Phuket will remain closed until the fourth quarter of this year, as international tourist demand is expected to return at a slower pace and selling advance vouchers to locals is considered ineffective, Bangkok Post reported.

While the international flight ban and emergency decree have been extended until the end of June, there’s no guarantee that the Civil Aviation Authority of Thailand will lift restrictions after that. Hotels along the beach that target international guests will reopen in September at the earliest, said Suksit Suvunditkul, chief executive of Deevana Hotels and Resorts and vice-president of the Thai Hotels Association (THA) southern chapter.

“The situation is unpredictable, but as July and August are low season, resuming operations is not worth the effort while guest demand is still weak,” he said. “With some hotels not reopening until the fourth quarter, they cannot expect to profit.”

Mr Suksit said the Phuket office of the Tourism Authority of Thailand informed tourism operators in the province that this year will be mostly limited to the domestic market, with the Asian market starting to recover at the beginning of next year and the European market to follow much later.

Some hotels on the island that target local sales are likely to reopen first in the second half this year, or as soon as there’s a provincial order allowing hotels to open again, he said.

Other hotels in resort spots are trying to increase liquidity by selling “staycation” vouchers to locals that allow guests to pay first and choose dates later to avoid the uncertainty of the situation.

Mr Suksit said those campaigns usually offer up to a 50% discount for guests and leave the available period open until the end of this year or the next.

“This promotion is not attractive to locals, as the pandemic is likely to keep tourists within three-hour drives from home as people avoid boarding planes to long-distance destinations,” he said.

A number of hotels in Phuket are scheduled to open in July because cash aid for workers from the Social Security Fund runs for only 90 days, said Kongsak Khoopongsakorn, president of the THA’s southern chapter.

“Most hotels in Phuket have enough cash flow for this month alone,” he said.

Mr Kongsak estimates that Phuket will be ready to welcome international tourists when the 14-day quarantine restrictions are lifted during the fourth quarter.

He said reopening Phuket airport will help tourism in the province by improving access for locals and visitors from other provinces.