Phuket Airport activity shows sharp fall

Passenger and flight movements at Phuket international airport fell sharply last month by 64% and 27%, respectively, from January 2004, reflecting the severe blow that the Dec 26 tsunami has dealt to the resort island’s key tourism industry.

Of particular concern was the number of international passengers, the key contributors to the economy of Phuket and adjoining provinces, which plunged 88.8% year-on-year to just 27,026 while domestic travellers slipped 42.4% to 154,485.

The fall was due mainly to the massive cancellations by international holiday makers, who were grieving, shocked and scared in the wake of the Indian Ocean tsunami that has resulted in nearly 300,000 deaths, including at least 5,300 in Thailand.

A number of international airlines operating to the island also cut back the number of flights or suspended them altogether as traffic demand to the region plummeted to an historically low level, doling out a crushing blow to the hospitality industry in Phuket, Phangnga and Krabi where average occupancy rates ran around 7-10%, compared to some 90% in the same period last year.

The prospect of a noticeable recovery of passenger and flight movement at Phuket airport is not yet on the radar, although there are some signals that it may increase this month, according to Pornchai Eua-aree, director of Phuket International Airport.

A couple of airlines, which had suspended their regular services to Phuket right after the tsunami hit, this month resumed their flights. They are Brittania Scan, Orient Thai Airlines, Condor Flugdienst GmbH and Finnair.

Carriers such as China Eastern Airlines, China Airlines, Asiana Airlines, and Korean Air have yet to put Phuket back on their timetables as they do not expect revived demand to visit the island for the time being.

In the pre-tsunami period, there were 23 airlines operating in and out of Phuket on a scheduled basis while nine other carriers flew charters.

Phuket airport director Mr Pornchai does not foresee any remarkable increase in airport movement given the fact that the tourism industry in the southern region has yet to recover.

Realistically, the Andaman coast destinations are going through the later part of their peak business season, which runs from November to March, and it would be difficult to regain the lost traffic, especially in the festive season and January period, the Phuket airport chief said.

However, the promotion campaigns launched by international tour operators in association with airlines and the Tourism Authority of Thailand (TAT) should attract more tourists to Phuket in the next several months. But their numbers are very unlikely to offset the lost ones in the peak season which command premium returns to the industry.

Traffic in the months after January to November constitute lower-spending tourists who normally seek bargains in the low-season, local industry operators said.

Phuket hoteliers are upbeat, hoping that their occupancy rates would climb to 40-60% in the next couple of months, if all campaigns, centred on rebuilding confidence among holiday makers and with rock-bottom price offers, work as targeted.

Before the tsunami catastrophe, Phuket airport projected a 20% growth in passenger movement in 2005. It is now more likely that this year’s numbers will be less than last year’s which were about five million.

Phuket branches of AoT and TAT have proposed to either waive or reduce the airport service fees for airlines _ landing fees and navigation charges _ to encourage carriers to serve the airport during the difficult period. But as of yet, there has been no word on this matter.

The Phuket airport director said he personally hoped AoT would be allowed to cut the landing fees, adding that although the amount was not big enough to represent any substantial cost saving for airlines, it would have a positive psychological impact on operators.

AoT’s landing fees are about 30,000 baht for medium-sized aircraft such as Airbus A320s (about 200 seats) and 50,000 baht for Boeing 747s.

by Boonsong Kositchotethana, Bangkok Post

February 7, 2005   Posted in: Thailand