By Nikki De Guzman:
Thailand’s robust tourism sector in 2012 was boosted by an influx of 1.6 million visitors from Eastern Europe, with Russians accounting comprising 82 percent of that figure, according to a report by consulting firm C9 Hotelworks.
The market research revealed that the impact was most apparent in Phuket as 650,000 Eastern Europeans poured in US$1.2 billion (THB35.23 billion) into the island’s economy in 2012.
Russian outbound tourists to South East Asia soared to more than 1.8 million last year with 71 percent visited Thailand followed by nine percent going to Vietnam, and Indonesia and Cambodia each had a five percent share. Meanwhile, Singapore only attracted four percent of the total.
The surge in visitors is attributed to the robust economic growth of Eastern Europe and Thailand’s implementation of a visa exemption in 2007.
“Phuket has seen this business build up over the past four years with a 42 percent compound annual growth rate. This rapid acceleration has turned the tables upside down on the once dominant Western European market,” said Bill Barnett, Managing Director of C9 Hotelworks.
“The shift is now on display day in and day out on the resort island where mounting numbers of charter flights and tour buses are a constant reminder of a changing world.”
The report also noted that one of the key factors that contributed to the surge in Russian visitors is Phuket’s growing airlift coupled with its strategic door-to-door travel time. Eastern Europeans visiting the island saw a compounded annual growth rate of 77 percent, with charter flights delivering 56 percent of all inbound passengers last year.
“While Phuket with its airlift impact has shown little sign of slowing down in 2013, Bali’s seeing a slow down as its Eastern European market has turned melodramatic with no direct scheduled service from Russia,” Barnett added.
Furthermore, Russians comprise the third biggest group of foreigners issued with work permits in Phuket.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg
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