Phuket: More tourists, fewer baht

This is obviously good news, but businesses on the island are finding that strong arrival figures haven’t translated into the kind of revenue enjoyed during past high seasons. Many report income down by 30 to 40 percent compared to the 2007-2008 season.

Although this is an improvement over the 2008-2009 high season, which was wiped out by the takeover of Bangkok’s two airports, business operators are complaining that the hoped-for bumper profits needed to get them though the next low season simply aren’t there.

There are several reasons for this spending drop, the most important of which is the state of the global economy. The downturn has left European tourists, traditionally Phuket’s bread-and-butter market, forced to cut back on expenditure while on vacation.

The demographics of inbound tourism to Phuket are changing as well. With the expansion in the number of direct scheduled and direct charter flights to the island from many new destinations in the region, Asian tourists now make up half of all foreign visitors.

In response to these trends, the Tourism Authority of Thailand (TAT) says it is trying to get tourists to part with more cash during their stays here.