Phuket Tourism Swings to China, Russia As Passengers SurgeBy Nussara Lem and Alan Morison (www.phuketwan.com) Tuesday, December 20, 2011
PHUKET: A remarkable surge in visitors from China now makes that boom economy the leading source by far of Phuket tourists in the first part of 2011, according to figures from the Tourism Authority of Thailand.
Russia is also threatening to overwhelm Australia as Phuket’s second prime source of tourists in 2011, the figures show. In 2010, revenue generated from tourism totalled 108,446 million baht, according to the TAT figures, with the average international visitor spending 5154.85 baht a day. The vast majority of international visitors continue to choose resorts or hotels with only 6.3 percent staying at houses or with friends and 3.3 percent using guesthouses, the figures say. A ‘Phuket Tourism Overview’ presented by TAT Phuket director Bangornrat Shinaprayoon to a weekend real estate seminar also raised the question of how many international visitors Phuket actually has each year. Official figures from Phuket International Airport showed just over seven million arrivals and departures in 2010, with eight million likely to be reached in 2011. Based on that figure, international visitors would constitute a portion of the four million arrivals, discounting domestic travellers and expats residing on Phuket. The TAT figures, however, say there were 4,506,026 expat visits to Phuket in 2010. With 965,192 Thai visitors, that makes 5,471,218 ”Guest Arrivals” to Phuket in 2010. Real figures appear difficult to obtain and inflated or unrealistic figures are sometimes blamed for property developers or resort-builders deciding to go ahead with Phuket projects on the basis of false optimism. Phuketwan uses the Phuket International Airport arrival and departure figures as a rough guide to tourism trends, putting to one side those additional travellers who arrive by cruise ship or bus. However, given that the airport statistic for total passengers amounts to 3.5 million arrivals and the TAT figure is 5.4 million, it’s little wonder investors and journalists struggle for accurate information. The TAT notes that in 2009, data collection methodology was changed by the Ministry of Tourism and Sport. According to the statistics, Phuket had only 3.375 million ”guest arrivals” that year compared to 5.313 million in 2008, 5.005 million in 2007, 4.499 million in 2006 and a mere 2.510 in 2005, post-tsunami. The figures provide the following snapshot of year on year increases in the January-August period of 2011 on Phuket from the top 15 markets: China 227,431 (up 111.68 percent); Australia 172,984 (up 24.17 percent); Russia 160,050 (up 103.72 percent); South Korea 145,829 (up 27.8 percent); Sweden 82,267 (up 17.3 percent); Malaysia 69,145 (up 22.66 percent); Singapore 63,098 (up 6.57 percent); Britain 48,927 (up 7.99 percent); Finland 44,096 (up 28.72 percent); Hong Kong 40,438 (up 36.66 percent); Germany 36,085 (up 1.66 percent); France 28,888 (down 0.9 percent); US 27,623 (up 17.02 percent); Japan 26.099 (up 11.27 percent); Denmark 24,564 (up 4.91 percent). Flight numbers for the November 2011- March 2012 Phuket high season indicate that the rise of China and Russia is likely to continue with 49 weekly flights coming from China and 21 from Russia, compared to 15 from Australia. Hong Kong (31) and Korea (25) are also promising compared to Sweden (15), Denmark (8) and Germany (5). Singapore (63) and Malaysia (43) have larger totals but many of these are connecting flights to other destinations. The property seminar, at Royal Phuket City Hotel in Phuket City, was organised by the Phuket Real Estate Association and chaired by Vice Governor Somkiet Sangkaosutthirak. According to HSBC Expat Explorer Survey, Thailand still the best place in the WorldHSBC Expat Explorer Survey Releases Initial Results on Top Expat DestinationsThe initial findings of the annual HSBC Expat Explorer survey (http://www.expatexplorer.hsbc.com) reveals that Thailand is still the number one expatriate destination for the second time, since the survey was established four years ago. Some nations which have experienced turbulent and often violent political events in the past twelve months continue to rank in the top ten in terms of the quality of the expat experience, with Egypt taking second place, followed by Saudi Arabia.
Additionally, Bermuda did not make it into this year’s survey, yet seven new countries have: Turkey, New Zealand, Brazil, Italy, Egypt, Vietnam & Japan, meaning that this year’s survey now covers 31 countries around the world. We will keep our readers abreast of the release of the full 2011 HSBC Expat Explorer Survey once it becomes available.
COMMENT: Initial findings from the largest global expat survey of its kind in the world (3,385 expats from over 100 countries have taken part) offers some fascinating trends applicable to the expat community: (1) Despite the economic uncertainty in 2010, expats remain fairly optimistic about the economic outlook in the country where they live. Despite this optimism, only 64% of expats intend to stay in their current country compared to 87% in 2010; (2) The economic benefit of becoming an expat: in 2011 63% of expats report having more disposable income since relocating compared to 56% in 2010; (3) Language barriers are becoming less problematic for expats with only 27% reporting this as an issue compared to 30% in 2010; and (4) In 2011, expats are less concerned about feeling lonely and missing their friends and family with only 31% reporting this in 2011, compared to 34% in 2010. Demand for property on the increase as Asia – based expats look to PhuketA big interest from Russian buyers and other expats working and living in Hong Kong and Singapore has helped property sales in Phuket speed up. While buyers from markets such as the UK are still feeling the financial restraints of the global financial crisis. Majority Phuket Property Controlled by Expats Claim RejectedPhuket’s Land Office has recently rejected an article which claimed up to 90 percent of prime beachfront land on Phuket was illegally owned by foreigners and has said this to be untrue. Prior to this article the same issue was raised in 2009 and was also proven untrue Sports Centre Planned for Nai Harn Lagoon IslandA COMMUNITY sports centre is being proposed for an island in the middle of Nai Harn’s lagoon, the Mayor of Rawai, Aroon Soroj, said last night. The project would cost eight million baht and include a fitness centre and a football training area on about three rai, he told Phuketwan. The cost of workout fitness equipment is factored into the eight million baht figure. The artist’s impression (above) includes a car at the door of the centre and there are no trees in the image. But Mayor Aroon said there was no plan to lop existing trees on the island, or to allow large vehicles to drive onto the island. ”Many people now understand the health benefits of exercise,” Mayor Aroon said. ”If people stay fit, there’s less of a drain on the community in terms of medical treatment. ”Rawai is committed to keeping its residents healthy.” The lagoon is a popular route for joggers and cyclists. The proposal will be submitted to Rawai council next week. If approved, construction could start at the end of June. Whether residents would pay per visit or join a club has yet to be determined. November Start Set for Phuket Airport MakeoverCONSTRUCTION on the expansion of Phuket International Airport is expected to begin in November, Phuketwan has learned in advance of a formal announcement on Phuket later this week. Building of the new international terminal and improvements to the domestic terminal are due to start in July 2012, says Toompetch Boonyaridh, Vice President of Airports of Thailand’s Corporate Communications Office. In November this year, work is expected to begin on the runway landing and takeoff area, which includes the refuelling zone, and the internal airport road system. Work on car parking and buildings to house a cargo office, the AoT office and the fire service will begin at the same time. The entire 5.8 billion baht project, approved by Cabinet on December 1, 2009, is anticipated to be completed by May 31, 2014. AoT is working with the office of Natural Resources and Environmental Policy and Planning, Khun Toompetch said. The AoT board meets on Phuket on Friday this week when details of planning for the airport expansion and beyond 2014 are expected to be revealed. Queues at Immigration – both among arriving and departing passengers – have become a source of concern at peak periods on Phuket and at Bangkok’s Suvarnabhumi airport. Phuket airport dealt with more than seven million arriving and departing passengers last year. It’s anticipated that the figure could rise to eight million this year. HK and Shanghai Property Go Different DirectionsAccording to a report in the South China Morning Post Hong Kong and Shanghai real estate are headed in different performance directions. On the heels of research by Savills and Jones Lang LaSalle mainland China darling Shanghai could see value decline by as much as 10% this year. Lead indicators in the big chill have been new tax legislation and a ceiling imposed on new purchases aimed to stem widespread speculation. While Hong Kong is on the flip side of the coin with leading experts looking at a 10% rise through 2011. The SAR continues to be one of the regions hottest property storylines with little indication of a flattening anytime soon. Uncompleted Developments Hit Phuket MarketThe hangover from the global financial crises is setting the stage for some Phuket developers to not push through with projects, and look at exiting land investments. Two recent examples of properties entering the market are the Baan Talay and Miora Resort developments. Located in Layan across the road from the stalled Shangri-La site, the 48 rai Baan Talay estate which was planned to be mixed use villas and commercial has been put up for sale. While in Kalim, what was to have been Miora, operated by an international hotel company is also seeking buyers. Some infrastructure exists for both, but in reality these are greenfield site. The tables have been turned on the island in favor of Thai groups who have access to equity and debt. While smaller foreign investment groups who looked at financing projects though pre-sales have seen this model debunked over recent years. Expect more “For Sale” signs to pop up this year as the residential market looks for equilibrium. COMING SOON New Zoning For PhuketNew zoning regulations are about to be issued for the island of Phuket, which are expected to be released in the near future. From our discussions with local officials and a sneak preview of the updated zoning program it appears that the revision will be more advantageous to developers. One clear area highlighted is the large Mai Khao area, which for the allowable residential and commercial areas it seems that officials have anticipated being transformed into a higher density semi-urban area. For those anticipating more zoning controls over the island as have taken place last year in Phang Nga, there may be some disappointment. Patong to join Phuket Light Rail BidA Korean company has recently joined other contenders for construction in an attempt to bid for Phuket’s light rail link . Residents are hopeful this will include an extension all the way Patong. Older Posts » |
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