A RAINY season that brought a late monsoon could not stem the tide of tourists shunning Bali and Malaysia for the second year running, and heading for Phuket.
Still enduring the perception of profiteering through unreasonable price increases, Phuket hotels nevertheless have continued to enjoy unprecedented average occupancies throughout 1999.
May and June saw occupancies plummet to the 20 per cent to 30 per cent range - unheard of in the last few years. But major properties have since been consistently full during the low season.
"Phuket continues to offer value for money. It's not about whether the baht prices have gone up. It's the perception of value. In reality, we are no more expensive than we have ever been," says Kata Group President and leader of the Phuket Tourist Association Pamuke Achariyachai.
However, as the millennium approaches, more than a few general managers are concerned.
One top resort with an early return of allocation has found itself with an embarrassingly high number of empty rooms on December 31.
Easy to re-sell? While selling rooms may not be a problem, flight availability to Phuket for FITs (free independent travellers) definitely is.
While hotels continue to enjoy the benefits of trouble in neighbouring holiday destinations, travel agents and tour operators are suffering. Patong-based The Travel Company general manager Bill Owen last year sold the business he started 12 years ago to Tropic Asia, a division of Diethelm Travel.
"We were being squeezed. Lower margins via tour operators, direct bookings and now lower airline ticket commissions, meant a re-think of the direction we needed to take, says Owen. "We were reduced to counting on day trip and shopping commissions for much of our revenue."
The Travel Company has downsized and is seeking new, more profitable niche markets.
Many local operators are less astute and are yet to show any inclination to accept the new realities.