Phuket Resorts, Tour Operators Face Set Price Regulation Aimed at Moving Phuket Upmarket
By Chuitma Sidasathian
Friday, August 22, 2014
PHUKET: Dramatic changes aimed at ending price-cutting in Phuket's tours industry and among all Phuket resorts are now being introduced, a leading Phuket official said today.
Controls on prices would end commissions of up to 50 percent now being paid to taxi and tuk-tuk drivers - an excessive rate that some people say will eventually destroy Phuket's tourism competitiveness.
Santi Pawai, the newly-appointed head of the Bureau of Tourism Business and Guide Registration, said a crackdown on illegal guides will be followed next week by a deadline for the registration of tour companies and counter-tour operators.
Khun Santi's strategy, outlined to Phuketwan today, includes a move towards all Phuket resorts as well as tour companies being obliged to stop slashing prices so they compete instead on service alone.
''Every reduction in price means that Phuket attracts cheap tourists, not quality tourists,'' Khun Santi said. ''We will be aiming to control prices and set standards for the industry in future.''
It's not known yet how Khun Santi will deal with the ''two nights for the price of one'' deals that ostensibly retain price levels while at the same time offering a discount.
More will be revealed when 300 leading companies among Phuket's 1500 registered tour companies and counter-tour operators meet at the Metropole Hotel in Phuket City on Wednesday to learn about Khun Santi's plan.
He told Phuketwan that he was surprised, on being appointed to his new role last month, to be told that regulations designed to control the tour industry were not enforced.
''I am calling the largest companies to the Metropole but the regulations will be applied to all companies, including resorts that have counter-tour operations in their foyers,'' he said.
''After we have sorted out the tour operators we will move on to resort prices. It's time Phuket set its own standards within the industry to target the best possible outcome.''
Operators at Wednesday's meeting will be told that from now on, all paperwork must be in order - and they are no longer able to compete on price, but must compete on service alone.