Despite a sharp decline in Chinese arrivals flying direct to Phuket, hotels in the island could still record a solid high season for January and February with a 92% occupancy rate and average room rate surging 15% to 5,557 baht.
The average occupancy is expected to drop to 75% in March, while the average room rate should slip to 4,483 baht, said Suksit Suvunditkul, president of the southern chapter of the Thai Hotels Association.
He said the tourism market in Phuket is now largely dominated by Russians, particularly those arriving via direct flights.
From March 1-15, Phuket welcomed 72,379 Russian tourists arriving on direct flights, while the number of Chinese visitors via direct flights tallied only 14,113.
In January, Chinese arrivals directly entering Phuket increased by 136% to 114,729 year-on-year, but sharply plunged by 46% year-on-year to 52,054 in February as the market was marred with declining safety confidence.
Mr Suksit said the overall hotel performance in the high season significantly improved compared to 2024 and surpassed the solid record in 2019, mainly attributed to European guests and those arriving from other Asian nations.
Not only did five-star hotels gain as healthy occupancy rates and room rates as last year, but four-star properties also upgraded their selling prices.
However, the average occupancy rate in April is expected at only 59% as the foreign market would start to subside, but due to the Songkran holiday, the average room rate should rise to 5,001.
"We expect the market to be softer during the Songkran holiday as airfares during the period remain expensive. Phuket itself is also not the main destination for local tourists, unlike Krabi, where hotel rooms for April 13-17 are fully booked," he said.
Thanet Tantipiriyakit, president of the Phuket Tourist Association, said although Phuket enjoyed the best-ever high season in the past few months, its growth opportunities are restricted due to the limited carrying capacity, particularly in terms of infrastructure.
He said traffic congestion has become a more pressing issue, as well as waste management, which is struggling to cope with growing consumption from the enlarged tourism market.
With the surge in news reports about foreign businesses and individuals taking prohibited jobs in Phuket, he said prevention is quite challenging, particularly for registered companies that use Thai nominees.
He said the number of condo rooms and villas illegally rented out on a daily basis via online platforms also soared in the past high season.
At present, there are only 1,000 licensed hotels offering roughly 100,000 rooms in Phuket, but the number of illegal rooms is 1.5 times higher.