Bill Barnett, managing director of C9 Hotelworks, a hospitality consultancy based in Phuket, said Thailand’s political uncertainty has led to discontinuity in terms of national policies, including tourism stimulus and infrastructure development funding, reports the Bangkok Post.
While investors continue to develop new properties, it’s a concern that large-scale public infrastructure projects cannot catch up, as the plans have been hampered by government instability, he noted.
For Phuket, these include a slowdown of the new expressway, light rail transportation and the plan to upgrade Phuket airport.
Meanwhile, other significant developments may also need to be closely monitored, such as the high speed rail connecting three airports as a part of the Eastern Economic Corridor, along with clarity regarding the entertainment complex bill, he said.
He said tourism operators are also worried that the giveaway of 200,000 domestic flights to foreign visitors would also be delayed from this month.
In comparison, Mr Barnett said Vietnam has more stable policies and plans to develop infrastructure projects, such as the high-speed railway connecting Hanoi and Ho Chi Minh City.
The political vacuum in Thailand might also result in delays in trying to solve the border conflict and restore the diplomatic situation with Cambodia.
Foreigners viewed Thailand as a safe haven, but today the border dispute has affected their confidence and discouraged tourists from visiting or living in Thailand, he said.
“Three or four months ago we were optimistic about the end of the year, but now we are not,” said Mr Barnett. “We are losing momentum. It’s worrisome.”
He said the number of foreign arrivals could reach 35.5 million, the same number recorded last year, or even below that level, which is mainly attributed to the sluggish Chinese market.
The situation regarding the low season this year is also relatively weak compared to the corresponding period last year.
Looking ahead to the high season in the fourth quarter, Mr Barnett said Phuket is expected to maintain its tourism market, though it would not be as robust as the corresponding period last year, as the number of tourist arrivals may drop by 5%, while the average daily room rate may plunge by more than 10% year-on-year.
He said some tourists are shifting to Vietnam as the average room rate at luxury hotels there is less than half the rate seen in Thailand.
Organised by C9 Hotelworks, the Phuket Hotels Association and Greenview, the Phuket Hotels for Islands Sustaining Tourism (Phist) 2025 was held on Monday in Phuket. The event gained a record high of over 1,300 participants.
Next year, the province is scheduled to host the Global Sustainable Tourism Council 2026 conference.