The number of tourists arriving in Thailand in the first half of 2022 amounted to about 512,000 people, as a result of the weakening of various measures for crossing the Thai border and free movement within the country. But it was still only 19% of the total number of tourists in the period before COVID-19 in the first half of 2019, but this is a significant recovery compared to the first half of 2021, when the number of tourists was less than 1,000.
The hotel business in Phuket has been severely affected by the spread of COVID-19, because this is an industry that largely depends on foreign tourists. The Thai government hopes to revitalize Phuket by launching a pilot open country in July 2021, which has a wide range of regulations amid the growing number of infections in the country. Due to the rather difficult situation, many hotel owners in Phuket are struggling to adjust their business models, focusing instead on local tourists.
In the first half of 2022, the majority of tourists came from East Asia (39%), mainly from Malaysia and Singapore, while 30% of tourists were from Europe (from the UK, Germany, France), and Indians accounted for 11%. In the first half of 2022, Phuket's hotel industry improved with the arrival of tourists.
The average daily cost of living in luxury and upscale hotels has recovered from its lowest level in the first half of 2021, increasing by 21% year-on-year to 2,825 baht, driven by an increase in the number of tourists in the first half of 2021. However, by 2022, the cost of living will remain 30% lower than before COVID-19.
The average occupancy rate was modest at 29%, but this is a significant recovery from 8% in the first half of 2021, an increase of 21% due to both domestic and foreign tourists.
The total offer of luxury and upscale hotels is 24,263 rooms at the end of June 2022, with a new offer of 698 rooms in the first half of 2022.
Most of Phuket's supply is located in the Patong area - 26%, followed by Karon 18%, Bang Tao 12%, Karta 11% and Kamala 10%.
The number of foreign tourists at Phuket airports was 59% in the period before COVID-19. The tourism business is steadily recovering, but the absence of tourists from Russia and China has a strong effect.
Experts believe that now is a good time to invest in hotel real estate, as the turnover of the tourist business increases monthly.