Phuket warned of looming rooms oversupply
PHUKET – A leading hospitality consultant has warned of “growing concern†over oversupply issues in Phuket.
Bill Barnett, managing director C9 Hotelworks, said development of new Phuket hotel properties remained strong, despite ongoing political issues in Thailand and the international financial downturn.
Thirty new hotels are at various stages of development with more than 4,918 rooms due to hit the supply side over the next three years, according to the C9 Hotelworks consultancy.
“What is currently a sleeping giant, in terms of supply growth, is the conversion of exclusive villas and condos, in the non-traditional accommodation segment, becoming a direct competitor to the mainstream hotel market,” Barnett said.
Currently on Phuket there are nearly 40,000 rooms in registered tourism establishments, ranging from guest houses up through to branded hotels with approximately 10,000 of these, or 25 percent of total supply, being international star-rated.
Next year will see a big surge in supply with 1,850 new rooms scheduled to open.
Barnett added, “The hotel market in Phuket is seeing a strong shift of new properties at the northern end of the island, in particularly Mai Khao, and now over the bridge into Phang Nga.
“The east coast and Phang Nga bay are set to define a new era of luxury properties which include The Yamu – designed by Philippe Starck/Jean Michel Gathy – Jumeirah Private Island and Taj Exotica.”
Ian Jarrett
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