Phuket, Thailand, as a Tourism Destination

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Executive Summary

Phuket is a major tourist destination situated on the western coastline in the southern part of Thailand in the Andaman Sea and the Indian Ocean. The province engulfs an area of around 590 square kilometers including 39 other tiny land masses. In addition to its well-known natural heritage sea, sand, sky, beach, forest, and world famous diving spots the zone also proffers its Sino-Portuguese architecture and affectionate warmth that leaves the travelers to the city contempt and delighted.

Phuket, as a major tourist destination, has gone through many ups and downs in its tourism life cycle. Presently, it is concentrating on consolidating its position and aspires to be one of the most prominent attractions of the Southeast Asian region. In order to achieve its vision of becoming a ‘World Class Destination’, the tourism industry has to undergo some major structural changes and has to promote ‘Sustainable Tourism’. This would increase tourism generated revenue which, in turn, would help to revive Thailand’s economy as a whole. Proper marketing, promotion and a strong product line is needed for its tourism sector to overcome the intense competition it faces from neighboring international tourist hotspots.

Introduction

Situated just about 862 kilometers towards the south of Bangkok is the region of Phuket, one of Thailand’s major islands, which is time and again hailed as the “pearl of the Andaman”, or else the “pearl of the south”. (Edelman, 2005) Its natural wealth- rock-strewn peninsular, limestone crags, fine white sand beaches, serene broad bays and tropical interior forests amalgamate all together to make it the Southeast’s most affluent, bustling, explored and admired isle and prefecture.

Located in the tropical zone off the west shoreline towards the southern region of Thailand in the Andaman Sea and the Indian Ocean, the expanse encompasses an area of around 590 square kilometers when the 39 other tiny land masses are included.

Apart from its renowned natural heritage sea, sand, sky, beach, forest, and world famous diving spots the province also proffers its Sino-Portuguese architecture and warm hospitality that leaves the travelers to the city spellbound. Additionally, accommodations starting from top-notch resorts to tropical-style cottages have cordially provided for the diverse requirements of tourists. All in all, these attributes have turned Phuket into a truly exclusive tourist destination. (Howie, 2003)

The Vision of the Destination

Vision

The prospects of the tourism industry of Phuket is immense. In this context, in order to make use of the advantages the province has, the idea is to acomplish a Thai distinctiveness of ‘World Class Destination’ both with regrds to services and environmental preservation; to establish a ‘Sustainable Tourism’ framework, wherein the private and public sector join hands so as to conserve travel resources; and to promote Phuket tourism sector as a First-Rate Destination.

Goals

After the phases of highs and lows in the Phuket tourism industry, it is finally approaching a phase of consolidation and stagnation. It order to rejuvenate the efficacy of the sector efforts need to be made which once again transforms Phuket into an Ultimate Tourist Destination, catering to a wide variety of customer base and enhancing the tourist influx in the region. This would revive the revenues earned by the tourism industry which in turn would revitalize the economy of the kingdom.

Objectives

The Phuket Province has of late started to develop into a transformed tourist attraction and has been drawing a diverse range of tourist segments. In order to sustain this trend, tourism in the region still needs to undergo a considerable amount of alteration. Value-addition is a key factor in this context. Promotion of eco-adventure tourism and health tourism are few examples. The objective of the Phuket tourism sector is to establish a framework which can uphold and enhance the tourist influx in and around the Phuket province. Building a sound tourism infrastructure and making constant efforts to regenerate tourism oriented revenue are the primary objectives of the industry at present.

Strategy

In order to meet the goals and objectives as aforementioned, an efficient and healthy tourism policy must be adhered to. This includes building up a strong product line for the travelers, enhancing the transportation infrastructure and providing a safe and secure environment for the tourists. Integration of administrative and private tourism agency processes in order to achieve a complete synergy in the sector is very important in this regard. Only a successful implementation of such a sound policy can facilitate the realization of Phuket’s aspiration to emerge as a better and superior ‘World Class Destination’. (Crompton & McKay, 2007)

Competitive Positioning and Branding

Competitive Positioning

The East Asian Seas, engulfing Australia, Cambodia, The People’s Republic of China, Indonesia, Republic of Korea, Malaysia, Philippines, Singapore, Thailand and Viet Nam is the home to a surplus of one-thirds of the entire coral reefs present in the world. Given the extensive coral reef biodiversity in the region, and adding to it the serene beauty of the sea encompassed terrain and the tranquility of tropical forest reserves has transformed the region into a major tourist destination with several travelers visiting these countries each year to enjoy a pleasurable holiday experience.

These natural reserves in the Southeast Asian region serve as imperative reserves for the source of income for coastal inhabitants and the emergent tourism industry. The prospective economic worth of tourism, projected at US$4.8 billion, exemplifies the high reliance of Southeast Asian nations on tourism related returns for the development of their economy. (Fletcher, 2005)

Thailand’s tropical paradise – the Phuket Province proves to be a major player and continues to surpass its Asian competitors in the stiff competition in the tourism industry with the demand of comfortable and first-grade accommodation being administered by some of the world’s leading hotel chains. This, in sequence, has encouraged substantial degrees of investor awareness in the destination’s increasingly growing real estate market and greater than before interest from global hotel organizations who seek new ventures along the Andaman seaboard.

As indicated by researches, tourist influx in Phuket stood at a staggering 4.7 million in 2006, which generated tourism-oriented revenues of US$1.7 billion, an upbeat 87% compared to 2005. Projections indicate that the influx would rise to 5.2 million tourists with the revenues going up to US$2 billion during their period of stay on the island. However, some degree of mismanagement in water supply, waste management and infrastructure provision has proved to be the shortcomings of the island on which the neighboring tourist destinations capitalize. (Kar, 2006)

Branding

All tourist centers across the globe have a specific “brand image” through which it is marketed. If generated with awareness the brand image facilitates the differentiation of a destination in comparison to competing destinations. The natural and picturesque tranquility of the province has earned Phuket the repute of being “exotic, fun and friendly”. Renowned for its authentic traditions, fabulous beaches and worth mentioning nightlife, Phuket emerges as one of the most reasonably priced destinations across the planet when compared to other exotic tourist hotspots. Thus the notion of “value for money” is often associated with it.

Niche tourism, for example health tourism along with eco-adventure tourism is also promoted as presenting new choices. Phuket is being presented as the world’s leading “Health and Wellness Destination”. Business tourism is also aggressively pursued and has enhanced the travel and tourism industry, with the national administration and trade organizations adopting policies to promote business travel. New corporate arrangements and unique packages have been launched with complete leisure experiences for business tourists. These business packages often include golfing experiences and spa treatments. Thus Phuket is bargaining hard to prove itself as a complete experience destination in the world tourism arena. (Crompton & McKay, 2007)

Target Markets and Product Portfolio

Target Markets

Phuket is known for its scenic beauty, natural reserves in the form of beautiful beaches, calm tropical forests and an extensive expanse of stunning biodiversity in the coral reefs it possesses. This has spurred the interest of both governmental and private tourism organization and in the recent years has turned their attention to region. Extensive projects have been under taken by them to build a solid tourism infrastructure drawing in more and more customers from around the world.

Phuket targets the domestic tourism markets extensively. The positive development in domestic tourism has been one of the policies to facilitate the enhancing of the Thai economy and thus Thais are encouraged to undertake tours within the state. This eases the pressure on the tourism operators in the province, and provides some relief from stiff international competition. Various promotions and marketing packages were constantly initiated for Thais to experience Phuket’s splendor. As such, domestic tourism markets have been targeted with considerable success and the boom is expected to continue in the future.

Apart from domestic markets, Phuket tourism industry promotes its products to the international markets at length. Foreign travel to Phuket’s premiere destinations have been declining in the past with only people from neighboring countries opting to travel to Phuket. However, new packages offering way more amenities to the traveler have been launched to attract the tourists from all over the world. The travel costs have been brought down to invite tourist looking for holidays at reasonable costs. In addition, extravagant packages have also been reinstated to draw tourists seeking a luxurious and plush holiday experience.

Furthermore, business travel markets are being paid attention to so as to increase the revenues from this section of the market. Recent efforts have also encompassed the health travel market providing an excellent framework for medical services. (King, 2006)

Product Portfolio

Tourists around the world seek a comprehensive travel experience. In order to meet varying demands of different categories of travelers the Phuket tourism industry has equipped itself with a wide range of products which are better suited to the requirements of the clients. The most important products that Phuket’s recreation and tourism enterprise provides are recreational experience and hospitality. This includes an all encompassing capability of providing accommodation, food, traveling to sites, engaging in recreational activities and providing a sense of a complete experience.

Phuket boasts of an authentic cultural presence and the various traditional festivals are often special attractions for the tourists. A sound transportation framework is in place which allows the tourists to move around easily and obtain access to the splendor of Phuket. Accommodation is always a priority with tourists and the Phuket tourism sector takes care of that. A wide variety of options ranging from Luxurious Hotels owned by renowned hotel chain establishments to typical tropical resorts are made available to the tourists. Recreational activities include scuba diving, snorkeling, sailing and yachting and many more.

Adventure sports have also increasingly come up as an important aspect in this sector. More recently, with the intention of promoting Phuket as a “Health and Wellness Destination”, the medical infrastructure has been strengthened significantly. Phuket has emerged as a major hub for spas and medicine in the recent past. (Crompton & McKay, 2007)

Critical success factors and capabilities required in pursuit of positioning and target markets

Critical Success Factors

Over the years the tourism sector in Phuket as well as the whole of Thailand has undergone several highs and also experienced some lows. It has already put itself on the world map as a renowned tourist destination. It has nearly reached a phase of consolidation and stagnation. Thus to ensure sustained growth there are some issues that need to be attended to and a sense of innovation is much needed.

With the growth of tourism water supply and waste management issues have proved to be an important issue which needs immediate attention. The industry needs to invest considerably in this aspect so as to ensure a sustained growth in tourism. The political unrest in south Thailand has also hit the tourism industry hard. Safety issues and insulation from political turmoil is essential for continued growth in this sector. Phuket is also dropping back in the enhancement of tourism infrastructure in contrast to other Asian competitors who are value-adding to their basic packages. Thus this aspect also needs to be looked at. (Sen, 2001)

Required Capabilities

One of the most critical aspects facing the Phuket tourism industry is that even though the tourist facilities have increased, air carrier capacity is constant. Thus better air transportation framework is required. Along with that better and more efficient facilities at airports must also be provided in order to promote greater tourist influx. Road transportation facilities also need to be enhanced. For example, fuel subsides must be provided to travel agencies with their own transportation infrastructure.

A framework for sustainable tourism must be developed. Many well heeled foreign travelers and tour operators stipulate investments on conscientious, sustainable resorts, tour operators and airlines that are environmentally licensed. Thus, schemes and proposals which facilitate the generation of carbon-free, renewable energy solutions for transport, air-conditioning and hotel waste management must be promoted. Furthermore, value-added services need to be launched in order to increase the influx of tourists. (Lamb, 2004)

Implementation Plan

In order to ensure that Phuket achieves its aspiration to become a world class tourist destination some efficient policies must be adopted and must be implemented effectively.

Natural Attractions and Thai culture has to be promoted through tourism marketing.
It has to be ensured that there is a sustained preservation and conservation of the environment physically, collectively and visually.
Tourism infrastructure has to be enhanced in a manner which meets global norms.
Businesses and services involved in the sector must be encouraged to comply with international practices.
Human resource development initiatives must be carried out within the industry.
The help of academic institutions and experts in the field must be obtained at every level.
Eco-tourism has to be promoted through marketing programs.
Cultural and Historical Tourism must be preserved to a greater extent.
A tourist information structure needs to be set up.
Human Rights and individual liberty has to be enhanced.
Finally, a safe and secure tourism environment has to be created and promoted in order to develop the tourism status of Phuket. (Crompton & McKay, 2007)

References

Crompton, J., and McKay, S. (2007). Motives of Visitors Attending Festival Events. Annals of Tourism Research, 24(7), 425–439.

Edelman, S. (2005); Evaluation Techniques in International Business Management; Bloemfontein: ABP Ltd.

Fletcher, R. (2005). Principals: Beliefs and Knowledge; Believing and Knowing. Dunedin: Howard & Price.

Howie, F. (2003). Managing the Tourist Destination; NY: Thomson Learning, EMEA.

Kar, P. (2006). Tourism Economics and Related Applications; Kolkata: Dasgupta & Chatterjee.

King, H. (2006). Tourism Management Principals Today; Auckland: HBT & Brooks Ltd.

Lamb, D. (2004). Cult to Culture: The Development of Civilization. Wellington: National Book Trust.

Sen, S. (2001). Difference between Thinking and Acting in Global Economics. Bloemfontein: ABP Ltd.

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