(Phuket, 22nd) Thailand’s famous tourist island Phuket has welcomed a record number of visitors this year, but local small and medium-sized businesses, especially shops selling local specialty products and souvenirs, have seen declining income, highlighting the problem of disconnect between rising tourist numbers and merchants’ business performance.
According to Thai media Khaosod, Phuket business owners say the main reason for this situation is the change in tourist consumption patterns. Tourists rarely shop at small local stores and prefer to spend at large shopping malls, because malls often hold promotions and offer discounts which small shops cannot match.
Official data shows that in the first seven months of this year, Phuket attracted 7.6 million tourist visits, continuing the momentum of tourist return and growth after the end of the COVID-19 pandemic. According to the Tourism Authority of Thailand’s Phuket office, from January to July this year, Phuket’s average hotel occupancy rate reached 76.61%, with total revenue amounting to 290 billion Baht (about 38.3 billion Ringgit).
However, the tourism boom has not translated into increased sales for local small businesses, mainly because tourists’ consumption patterns have changed.
Phuket Chamber of Commerce Secretary-General Chalan said: “Business is now even quieter than during the COVID-19 pandemic period, and small and medium enterprises are particularly badly affected. Tourists rarely shop at small local shops, and residents also lack disposable income. Tourists prefer larger shopping malls because there are frequent promotions.”
Ami, a small vendor from Phuket Old Town, has noticed that many tourists just look and don’t buy: “Most here are Indian, Chinese, and Arab tourists, with very few from Europe. Although tour groups include the old town in their itineraries, they no longer arrange time for shopping as they did before.”
Many local vendors selling souvenirs and native foods say that the Thai government’s earlier initiatives such as “Travel Together” to boost tourism did lift some sales, but overall revenue is still on a downward trend.
Phuket’s situation reflects the new challenges facing Thailand’s tourism-reliant economy: rising tourist numbers do not necessarily boost local merchants’ incomes. Merchants are urging the government to pay attention to this problem and adopt measures to stimulate spending so small vendors can truly benefit from the tourism recovery.
According to Thai media Khaosod, Phuket business owners say the main reason for this situation is the change in tourist consumption patterns. Tourists rarely shop at small local stores and prefer to spend at large shopping malls, because malls often hold promotions and offer discounts which small shops cannot match.
Official data shows that in the first seven months of this year, Phuket attracted 7.6 million tourist visits, continuing the momentum of tourist return and growth after the end of the COVID-19 pandemic. According to the Tourism Authority of Thailand’s Phuket office, from January to July this year, Phuket’s average hotel occupancy rate reached 76.61%, with total revenue amounting to 290 billion Baht (about 38.3 billion Ringgit).
However, the tourism boom has not translated into increased sales for local small businesses, mainly because tourists’ consumption patterns have changed.
Phuket Chamber of Commerce Secretary-General Chalan said: “Business is now even quieter than during the COVID-19 pandemic period, and small and medium enterprises are particularly badly affected. Tourists rarely shop at small local shops, and residents also lack disposable income. Tourists prefer larger shopping malls because there are frequent promotions.”
Ami, a small vendor from Phuket Old Town, has noticed that many tourists just look and don’t buy: “Most here are Indian, Chinese, and Arab tourists, with very few from Europe. Although tour groups include the old town in their itineraries, they no longer arrange time for shopping as they did before.”
Many local vendors selling souvenirs and native foods say that the Thai government’s earlier initiatives such as “Travel Together” to boost tourism did lift some sales, but overall revenue is still on a downward trend.
Phuket’s situation reflects the new challenges facing Thailand’s tourism-reliant economy: rising tourist numbers do not necessarily boost local merchants’ incomes. Merchants are urging the government to pay attention to this problem and adopt measures to stimulate spending so small vendors can truly benefit from the tourism recovery.