Phuket feels the Covid pinch

Thailand’s planned reopening of the resort island Phuket next month to vaccinated visitors, bypassing quarantine requirements, has met a lukewarm response, with hotel bookings indicating expected occupancy of less than 20% so far.

The “Phuket Sandbox” initiative from 1 July will allow free movement on the island for tourists fully vaccinated against Covid-19, with no self-isolation on arrival. They will be given a green light to travel elsewhere in Thailand after 14 days. But there are a few tricky conditions, too, and many industry professionals have complained that uncertainty and constant rule changes are deterring bookings. The plan won’t be finalised until later this month.

(FILES) In this file photo taken on September 30, 2020 a lone customer walks past a swimming pool at the Vijitt Resort in Phuket, which has seen a lack of tourists due to ongoing restrictions relating to the COVID-19 novel coronavirus. – Thai authorities on June 22, 2021 greenlit a pilot model for quarantine-free travel to ultra-popular beach destination Phuket, a first step towards the tourist-hungry kingdom’s attempts to resuscitate its pandemic-battered economy. (Photo by Lillian SUWANRUMPHA / AFP)

“This will be a slow process. None of us are expecting a 100% occupancy on 2 July,” said Anthony Lark, president of the Phuket Hotels  Association.

Thai Airways is on board, with direct flights from six European cites to Phuket from July, although it anticipates only a fraction of seats being filled, with about 100 passengers in the first week, one the airline’s representatives said.

For an economy reliant on tourism for jobs and consumption, the new arrivals won’t bring immediate relief, although removal of the costly, two-week quarantine requirements that deterred tourists for more than a year offers some hope.

“We’re seeing strong interest, particularly from the Middle East, UK, Europe and Scandinavia already, to return to Phuket gradually,” Lark said.

(FILES) In this file photo taken on October 1, 2020 a man walks along an empty Patong beach in Phuket, which has seen a lack of tourists due to ongoing restrictions relating to the COVID-19 novel coronavirus. – Thailand’s Prime Minister Prayut Chan-O-Cha vowed on June 16, 2021 that Thailand will fully reopen in four months, citing the urgent need to save the kingdom’s battered tourism-reliant economy. (Photo by Lillian SUWANRUMPHA / AFP)P

Thailand lost about $50 billion (about R750 billion) in tourism revenue last year when foreign arrivals plunged 83% to 6.7 million, from a record 39.9 million in 2019.

The slump was attributed to global travel curbs and Thailand’s tough entry requirements. Phuket was particularly hard hit by job losses and business closures. The government hopes the Phuket Sandbox will draw 129 000 visitors to the country in the third quarter – a far cry from the average 3.3 million monthly arrivals to Thailand in 2019. Typically, a quarter of Thailand’s visitors go to Phuket.

Thailand had just 28 701 visitors in the first four months of this year. One Phuket hotel owner said the sandbox initiative was “a bunch of bull” that would make little difference, in part because much of the target audience – middle  class and wealthy Asians – must quarantine upon their return home.

(FILES) In this file photo taken on March 20, 2020 international tourists, predominantly Russian nationals, enjoy the beach despite concerns over the spread of the COVID-19 coronavirus and restrictions for travellers at a resort in Phuket. – Thai authorities on June 22, 2021 greenlit a pilot model for quarantine-free travel to ultra-popular beach destination Phuket, a first step towards the tourist-hungry kingdom’s attempts to resuscitate its pandemic-battered economy. (Photo by Mladen ANTONOV / AFP)

“More than 50% of Phuket tourism comes from China,” said the hotelier, who asked not to be named. “Without that market, it will be difficult.”

The island’s hotel association has projected a gradual increase in occupancy to 30%-40% towards year-end, rising from 10%-20% over July-October, which includes local bookings.

Several major airlines are backing the plan and offering direct flights, including Emirates, El Al, Air France , Qatar Airways, British Airways and Cathay Pacific, according to the Tourism Authority of Thailand (TAT).

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Singapore Airlines said its Phuket flights will increase from two per week to seven from July, after receiving interest. But a few obstacles remain, with outbound movement restrictions in some key markets, like China, Japan and Malaysia, while Thai health authorities have banned visitors from some high-risk countries, like India.

Critics also complain of onerous conditions, like mandatory swab tests, insurance coverage of a minimum $100 000 for Covid-19 treatment and use of a tracking application.

For its part, Phuket has been racing to vaccinate 70% of its residents – a requirement for reopening – with 60% having received a first dose so far, a rate far higher than capital Bangkok, epicentre of Thailand’s worst outbreak yet.

Idyllic Phuket takes the spot as the ‘third South Africa’

Phuket has recorded single-digit cases most days since May, when it introduced negative test requirements for domestic arrivals. Bangkok recorded hundreds of new cases each day last month.

Prime Minister Prayuth Chanocha on Thursday said Thailand was reopening to visitors within 120 days, and called it a calculated but necessary risk.

If the Sandbox scheme goes smoothly, authorities plan to replicate it in destinations like Krabi and Koh Samui. “Its a totally new situation. You are trying to reopen the country to tourism to help the economy but at the same time you need to be cautious,” said Chattan Kunjara Na Ayudhya, deputy governor of TAT. – Reuters

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