The official Phuket Tourism Association lists 119 hotels of varying size and standards. Most of these are located on the western shores, particularly on the beaches of Patong (40%) and Kata and Karon (27%) with about 12% in Phuket Town in the south (PTA, 2005). Nine international chains, five Australasian-based groups and several Thai companies are represented. Only 20% of Phuket’s hotels saw serious damage and 80% were open one week after the tsunami, although it was anticipated by officials that recovery would take from week to at least a year. January 2005 saw a 27% drop in inbound flights to Phuket and an 85% decline in international tourists. Hotel occupancy rates fell to 10% and were still averaging only 40%. Overseas arrivals into Phuket slumped by 67.2% in the first half of 2005. One group Chairman spoke about concentrating on the ‘medium to long term recovery process of restoring shattered communities-providing trauma counselling, sponsoring orphans, rebuilding homes and schools, rebuilding boatyards to build fishing boats for villagers’.
The hotel industry was dependent on airlines and overseas tour operators and travel agents. Many of these cancelled flights and tours, halted sales and ceased advertising tsunami-struck location with customers able to defer trips or switch destinations. Travel professional were invited to come and observe circumstances for themselves so that they could then report on these more accurately. Owners of hotels which had been totally destroyed exhibited contrasting attitudes; some were eager to rebuild while others preferred to wait and see how the crisis would evolve. Planned schemes were subject to delay and abandonment. Nevertheless, one chain announced that it was going ahead with three new projects, including one in Phuket, in a mark of confidence in the future.