Phuket’s Hotels Slashing Prices as Chinese Visitors Vanish
It’s a quiet beach town that’s suddenly feeling the cold shoulder. Phuket, the glittering gem of Thailand’s tourism crown, is seeing hotels trickle away empty as Chinese holidaymakers flee. The impact? Rooms unsold, sales bottom‑lined, and a beach that feels less crowded than a library at midnight.
What’s Gone Wrong?
Last year, Phuket was the best‑selling travel destination in the country, with a sun‑kissed reputation for both nightlife and beachfront serenity. Tourism outside Bangkok accounts for an eye‑popping 18 % of Thailand’s GDP, and Chinese travelers historically made up over a quarter of all visitors.
But those numbers have dipped sharply. Official figures report 2.2 million Chinese tourists in 2018. In turn, January‑September of this year saw a drop of almost a fifth compared to the same period last year.
Hotel Owners Under Pressure
Claude de Crissey, the French honorary consul and a 40‑room hotelier in Patong Beach, shared how the situation has become downright desperate:
- “Chinese tourists typically stream in regardless of the low season, but this year it’s no longer the case,” said de Crissey.
- He had to slash prices by up to 50 % just to keep guests at all.
- Such drastic reductions are a clear sign that the market’s grains are shifting.
And it’s not just Phuket. Hotels in Pattaya on the mainland and Koh Samui on the island are also fighting to fill rooms.
Why the Dip?
Beyond a slump in Chinese arrivals, two key factors are hurting the industry:
- A trade standoff with the U.S. has left many Chinese travelers uncertain about holiday plans.
- The Thai baht has risen about 10 % against the yuan this year, making trips pricier for China’s overseas vacationers.
A recent boating tragedy off Phuket’s coast that claimed 47 Chinese lives has also added to the tension. “We’re worried,” an industry insider told AFP—an unmentioned source, perhaps because tourism is a protected industry in Thailand.
Meanwhile, the island’s hotel industry is looking over its shoulder. With more than 3,000 new rooms under construction, the problem of finding guests has magnified.
Industry Voices
Mr Kongsak Khoopongsakorn, vice‑president of Thailand’s hotel association and director of Vijitt Resort, shared his view:
“Business‑wise, we’re not looking good. We have more hotels, more rooms to sell, more restaurants, and more coffee shops. It’ll just build up a surplus.”
Still, optimism clouds the outlook. Tourism authority chairman Yuthasak Supasorn told AFP that he remains hopeful. He added: “We should reach 39.8‑million foreign visitors this year,” a figure that’s only a slight increase from 38.2 million in 2018, a far cry from the previous jump from 35.6 million.
Looking to India
With the Chinese market sliding, Thai hoteliers are looking eastward for an alternative. India’s rapidly expanding middle class, more direct flights, and visa‑free travel are seen as a massive untapped opportunity. Thailand now forecasts two million Indian visitors this year—nearly a 25 % year‑on‑year jump in the first seven months.
“We’re counting on Indians to revive the sector,” said Kongsak. For tourists from Hong Kong and beyond, the market is still a challenge.
Perspectives From the Ground
Australian traveler Paul Scott, who’s visited Thailand for 15 years, has not seen anything as bleak in recent times:
“I’ve never witnessed a better downturn than this. It’s a checkout on summer’s golden vibe.”
Instead of the “unforgettable paradise” lead‑up years ago, the beach feels a bit cloudy or, as Scott put it, “not so new… and it’s not cheap.” The fact that the Thai baht is stronger also plays a part. Travelers see their budgets shrink in comparison to the rising currency exchange rates.
In summary, Phuket’s bright beaches are dimming through a combination of global trade tension, an unpredictable currency, and a deficit of Chinese visitors, forcing hotels to stretch their budgets. Meanwhile, the industry looks to India’s burgeoning prospects as a potential lifeline, but whether that will truly balance the books remains to be seen.