"Thai airport activity shows sharp fall due to tsunami"

Monday, February 7, 2005

Airport activity shows sharp fall
Thailand - The Bangkok Post


PHUKET -- Passenger and flight movements at Phuket international airport
fell sharply last month by 64 percent and 27 percent, respectively, from
January 2004, reflecting the severe blow that the Dec 26 tsunami has dealt
to the resort island's key tourism industry.

Of particular concern was the number of international passengers, the key
contributors to the economy of Phuket and adjoining provinces, which plunged
88.8 percent year-on-year to just 27,026 while domestic travellers slipped
42.4 percent to 154,485.

The fall was due mainly to the massive cancellations by international
holiday makers, who were grieving, shocked and scared in the wake of the
Indian Ocean tsunami that has resulted in nearly 300,000 deaths, including
at least 5,300 in Thailand.

A number of international airlines operating to the island also cut back the
number of flights or suspended them altogether as traffic demand to the
region plummeted to an historically low level, doling out a crushing blow to
the hospitality industry in Phuket, Phangnga and Krabi where average
occupancy rates ran around 7-10 percent, compared to some 90 percent in the
same period last year.

The prospect of a noticeable recovery of passenger and flight movement at
Phuket airport is not yet on the radar, although there are some signals that
it may increase this month, according to Pornchai Eua-aree, director of
Phuket International Airport.

A couple of airlines, which had suspended their regular services to Phuket
right after the tsunami hit, this month resumed their flights. They are
Brittania Scan, Orient Thai Airlines, Condor Flugdienst GmbH and Finnair.

Carriers such as China Eastern Airlines, China Airlines, Asiana Airlines,
and Korean Air have yet to put Phuket back on their timetables as they do
not expect revived demand to visit the island for the time being.

In the pre-tsunami period, there were 23 airlines operating in and out of
Phuket on a scheduled basis while nine other carriers flew charters.

Phuket airport director Mr Pornchai does not foresee any remarkable increase
in airport movement given the fact that the tourism industry in the southern
region has yet to recover.

Realistically, the Andaman coast destinations are going through the later
part of their peak business season, which runs from November to March, and
it would be difficult to regain the lost traffic, especially in the festive
season and January period, the Phuket airport chief said.

However, the promotion campaigns launched by international tour operators in
association with airlines and the Tourism Authority of Thailand (TAT) should
attract more tourists to Phuket in the next several months. But their
numbers are very unlikely to offset the lost ones in the peak season which
command premium returns to the industry.

Traffic in the months after January to November constitute lower-spending
tourists who normally seek bargains in the low-season, local industry
operators said.

Phuket hoteliers are upbeat, hoping that their occupancy rates would climb
to 40-60 percent in the next couple of months, if all campaigns, centred on
rebuilding confidence among holiday makers and with rock-bottom price
offers, work as targeted.

Before the tsunami catastrophe, Phuket airport projected a 20 percent growth
in passenger movement in 2005. It is now more likely that this year's
numbers will be less than last year's which were about five million.

Phuket branches of AoT and TAT have proposed to either waive or reduce the
airport service fees for airlines -- landing fees and navigation charges --
to encourage carriers to serve the airport during the difficult period. But
as of yet, there has been no word on this matter.

The Phuket airport director said he personally hoped AoT would be allowed to
cut the landing fees, adding that although the amount was not big enough to
represent any substantial cost saving for airlines, it would have a positive
psychological impact on operators.

AoT's landing fees are about 30,000 baht for medium-sized aircraft such as
Airbus A320s (about 200 seats) and 50,000 baht for Boeing 747s.


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