May 2008

Corporates jostle with tourists in Phuket Print E-mail
By Sirima Eamtako

Arrivals in Phuket last year ranged between four and five million, marking the island’s complete recovery from the December 2004 tsunami.

But with demand rapidly outpacing supply, it is becoming harder for MICE planners to secure room allotments.

Bangkok-based DMC, Destination Asia (Thailand) managing director, Ms Pornthip Samerton, admitted it had become more challenging to get room allocations in Phuket for her MICE groups with a short lead-in time.

She said it was understandable that Phuket hoteliers had become more selective in wanting to work with more established tour operators and DMCs, and of course increase rates.

She said: “Phuket hotels realise their rooms are in demand and so they feel they are entitled to quote rates in accordance with the demand and supply situation.”

According to tour operators and DMCs, the average room rate for five-star properties in Phuket ranges from 5,000 baht (US$158) to 10,000 baht and above.

For four-star accommodation, the rates range from 4,000 baht to just below 5,000 baht, and for three-star hotels from 3,000 baht to just below 4,000 baht.

Rates drop by up to 50 per cent during the low season.

Thailand Incentive and Convention Association vice-president, Mr Opas Netraumpai, said despite the boom in Phuket’s leisure sector, the island remained attractive as an incentive and meetings destination. “Getting a room allocation in Phuket for MICE groups is still manageable as the island has no large MICE venue, and the situation is agreeable particularly in the low season when a large number of rooms would be available at good rates,” Mr Opas said.

High-end incentive planners may also have it easier, since rooms in the upper categories (those with rates starting from 7,000 baht) tend to be less sought after by the tourist market.

Thai Hotels Association Southern Chapter president, Mr Methee Tanmanatragul, said more than 15,000 rooms in all categories would be added within this year to the island’s inventory of 38,000 rooms.

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