Too many rooms, too little to do for foreign tourists in Phuket

Over the past five years, domestic political infighting has crippled efforts to develop a sustainable national plan for tourism. As Asia led the world in a post-2008 economic surge, a dynamic shift from foreign to Thai investment in the hotel business spawned an uncontrolled countrywide surge in the number of new properties.

Ranging from the feasible to the illogical, the influx of new tourist accommodations and the long line of new projects yet to be completed are endangering virtually every destination in the country.

Hotel development has made a dangerous transition. In the past, decisions to enter the industry were typically based on sound business criteria. Now, many people pursue the trade as a hobby, a secondary line of business or, in some cases, just to serve as a showcase for friends and family. In many cases, no feasibility study or initial financial projections accompany the investment decision.

As a result, many of the hotels and resorts that are now cropping up are bulk-standard, mid-scale properties that have few distinctive or unique offerings.

First-time hotel owners are generally investing in the provision of guestrooms only, with few looking into other demand generators for tourists. New master-planned resorts, with open areas and a wide array of facilities, are becoming an endangered species.

The hotel consultant firm pointed out that while the number of guestrooms has multiplied on private-sector investment, there has been little or no effective governmental regulation of this growth through zoning and other controls. Worse yet, government infrastructure projects that are needed to keep pace with the growth are too often focused on bringing in more tourists. This is perhaps the very definition of non-sustainability.

So many rooms, so many tourists, but what is there for them to do? Players in Phuket's travel industry often complain about the rising number of less-affluent guests, but what would one expect if all that is available is a seemingly unlimited supply of anonymous 32-square-metre rooms?

As of the mid-year mark, the island had 43,571 hotel rooms. Another 6,968 were in the pipeline and will open by the end of 2014.

Airport arrivals in 2011 are expected to top a record 4 million and total airport passenger throughput will near 8 million people. An expansion plan to boost the airport's capacity to 12.5 million by 2014 is under way.

With the number of hotel rooms growing and the airport being expanded, it is inevitable that more tourists will come. The clear and present danger is that there is no choice but to be thrust further down the dead end of mass tourism. That is, filling rooms at any price, but the price that Phuket will pay will be catastrophic.

An international convention centre would serve as a leading generator to diversify the inbound market and wean it off its growing reliance on charter and group tours. Domestic and international MICE (meetings, incentives, conferences and exhibitions) business are a necessary component of any developed market - be it Singapore, Hong Kong and even resort islands such as Bali.

In the case of the latter, a new conference centre is being built at the Nusa Dua destination resort.

Given recent history, it is illogical to expect that the rejection of the Phuket convention centre plan, as an isolated government intervention into the island's tourism future, is part of a changing attitude to get things right. One has to ask whether this is a case of political agendas colliding, or the shape of change with a greater awareness of planning foresight.

While officials wallow in indecision over tunnels, flyovers, convention centres and public transport, leaving Phuket's future very much a blur, the rest of the world continues to move forward.

Holistic long-term tourism planning is the only way forward: planning that includes stemming the number of new hotels, encouraging renovation and upgrades, strict enforcement of environmental control measures and appropriate and sustainable land-use zoning.

The key word here is "sustainability", and to finally move toward this goal requires diversification.

To punish Phuket by laying to waste a key and necessary infrastructure boost to the island's tourism economy is a shame. It's that simple.

For now, Phuket has all the rooms in the world, but very few places for people staying in those rooms to go to.