Phuket Hotel News: Tourism rebounds with steady growth
Phuket’s hospitality sector is showing renewed vigor as investors rush to capitalize on a stabilizing tourism market. In the first half of 2025, Phuket International Airport recorded a 5.6% increase in international arrivals, totaling 2.77 million passengers, while domestic arrivals edged up 1.4% to 1.69 million. The combined total of 4.46 million passengers underscores sustained global demand for Thailand’s premier resort island, even as growth moderates following the post-pandemic rebound. According to this Phuket Hotel News report, the market’s resilience and investor confidence signal a strong long-term outlook for the island’s hotel industry.
Phuket’s booming hotel market signals renewed investor confidence as tourism stabilizes across Thailand’s top island destination.
Image Credit: StockShots
Foreign markets shift and regional competition rises
Data from Knight Frank Chartered (Thailand) shows that Russia, China, and India continue to dominate Phuket’s inbound tourism, followed closely by the United Kingdom and Germany. Yet, the Chinese market remains subdued, with travel to Thailand still below pre-pandemic volumes. Interestingly, destinations like Vietnam and Japan have lured more Chinese travelers—2.7 million and 4.7 million arrivals respectively in early 2025—reflecting a shift toward destinations perceived as safer, offering better value, and more diverse experiences.
This growing competition from beach destinations such as Da Nang and Phu Quoc has pressured Phuket’s mid-range hotels and large tour operators. Many Chinese travelers now prefer independent or small-group trips over traditional tour packages, transforming the structure of demand and forcing operators to adapt their marketing strategies.
Domestic travelers hold the fort
While domestic tourism saw only slight growth due to higher travel costs and alternative Thai destinations, local travelers remain a stabilizing force during off-peak months. Their continued presence helps maintain occupancy levels when international arrivals dip, providing crucial support to smaller boutique hotels and family-run resorts across the island.
Hotel occupancy and pricing trends
Phuket’s hotels performed impressively during the first half of 2025, with the average occupancy rate climbing to 79.5%, up slightly from 79.1% last year. The high season between January and April was particularly robust, peaking at 91.8% in January, while June’s occupancy of 66.9% mirrored traditional low-season trends. Average daily rates (ADR) rose 7.8% to 5,652 baht, driven by strong demand for luxury beachfront resorts and internationally branded properties. After two years of aggressive rate hikes, pricing is now stabilizing, indicating that Phuket’s hospitality market is reaching a healthier equilibrium.
Phuket’s continued appeal, coupled with renewed investor activity and a maturing pricing structure, positions the island for sustainable growth in 2026 and beyond. If infrastructure development and destination marketing remain consistent, Phuket could retain its crown as Southeast Asia’s luxury tourism powerhouse despite mounting regional competition.
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