PHUKET, Thailand (28 Mar 2005) -- With the high season come and gone with hardly any business, authorities estimate that the tourism industry could see foreign earnings cut by half this year from the 85 billion baht recorded last year. "Actually, I think it would be okay if we could reach 50% of last year's tourist revenues," said Vinai Buapradit, the deputy governor of Phuket. "For the first quarter of the year, tourism revenues are down 90% from the year before." Three months after the Dec 26 tsunami, hotel occupancy rates have crept up to around 40%, still insufficient to cover costs but a sharp improvement from the 10% rates reported in the immediate aftermath of the tragedy. Mr Vinai said Asian tourists in particular had yet to return. Many are said to fear ghosts and are likely to stay away until the sad memories of the tsunami pass. Mr Vinai said the deteriorating local economy had led to rising unemployment and social tensions, with criminal activity and reported thefts rising. Pattanapong Aikvanich, president of the Phuket Tourist Association, noted that Easter was traditionally a strong time of the year. But tourist arrivals from key markets such as Singapore, Malaysia, Germany and Sweden were all down, he said. "The 40% occupancy rate is fine, all things considered. But it's not enough for the industry," he said. Tourism authorities have announced plans to invest hundreds of millions of baht in new promotions to help reassure foreign tourists that it is safe to return. The Tourism Authority of Thailand has also joined with local operators to convince companies to hold conventions in the area and launch promotional packages aimed at local tourists. Of the six provinces hit by the tsunami - Phuket, Phangnga, Krabi, Trang, Ranong and Satun - Phuket is the wealthiest and most dependent on tourism for economic survival. Most of the infrastructure and facilities on the island have been restored and reopened for operations but are still underutilised. Pongpasu Dhammaraks, the owner of Avantika, a boutique hotel on Patong beach, said the 31-room property only reopened recently after extensive renovations to the lobby and ground floor facilities, but occupancy was a dismal 10%. | | "All I can do is wait for the high season in the last quarter of the year. For now, I just am trying to do what I can to keep my staff working," Mr Pongpasu said. At nearby Kamala Beach, Anucha Songmuang only last month reopened his small Grace Resort. "But I have no visitors really. The only people coming are friends who are coming to help," he said. The situation is even more dire up the Andaman coast in Khao Lak, Phangnga. The area, which had the highest death toll of any in Thailand, suffered six billion baht in damages to the hotel industry. Only five of the 70 hotels that were operating before the tsunami are now open. One of the hotels includes Baan Krating, a small resort with 24 four-star villas. Receptionist Onuma Panjan says only three villas are occupied, one by a volunteer from Australia. "We cut rates from 4,500 baht per night to 1,700 baht, and the situation has still not improved," she said. At the Khao Lak Merlin Resort, the only five-star property still open, room rates have been slashed in half in an effort to stay in business. "We may have some gains due to the fact that we are among the few hotels still left open. But revenues are far below target," said general manager Prachak Svastisinha. The hotel normally earns 20 million baht a month during the peak season but is now earning less than half that. "I'm trying to look at the bright side, that at least the tsunami has put the name of Khao Lak on the world map. Whether good or bad, at least everyone is aware of Khao Lak now," Mr Prajak said. SOURCE - Bangkok Post |
