According to statistics, tourism accounts for 18 per cent of Thailand's gross domestic product and Chinese holidaymakers make up more than a quarter of total arrivals. But with a plunge in Chinese visitors caused by the US trade war and a stronger Baht, hotels on Thailand's most popular holiday island have been forced to slash prices with rooms left vacant and beaches almost empty.
The sun-drenched Phuket, located on the Andaman Sea and known for its beaches and nightlife, was the most visited destination in Thailand last year after Bangkok.
But while 2.2 million people from the country visited in 2018, according to official figures, numbers for January-September were down almost a fifth on-year.
Pattaya and Koh Samui island too has been affected with hotels struggling to fill rooms. Trade tensions with the US have already made some Chinese reluctant to take holidays owing to uncertainty back home, while the Thai baht has risen around 10 per cent against the yuan this year.
A boating disaster off Phuket's coast that killed 47 Chinese holidaymakers has also scared tourists. Added problem was the fact that more than 3,000 new hotel rooms are being constructed on the island, raising the question of who will fill them.
"In terms of business, it's not good," said Kongsak Khoopongsakorn, vice president of the association of hotels in Thailand and director of Vijitt Resort.
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