Declining European Airlift Hitting Upscale Phuket Hotels

Taking to hoteliers who attended the recent ITB Asia trade show in Singapore signaled a growing concern from high yielding wholesalers and retailers that shrinking airlift will not allow enough capacity into the island and hurt long haul business. Back of the financial crises many of European and US based carriers have scaled back flights and discontinued some routes. Even leading Asian based airlines such as Singapore Air and Cathay Pacific have had to reduce operating losses.
For the Phuket upscale and luxury sectors the current change in business profile of guests look to have a sustained impact on lower average room rates. Speaking to Scot Toon General Manager of the newly opened luxury Paresa Resort who confirmed that there is increasing concerned by European agents on seat availability to Phuket during the high season.
Hopefully as the regions economies recover and those in Europe that airlift will increase in the medium term future. While oil prices remain somewhat subdued, these remain a wild card and hold considerable weight in prospects going forward.