Dusit Thani Laguna Phuket is moving full steam ahead with the biggest makeover in the hotel's 30-year history, aiming to cater to improving tourism on the island.
Some 300 million baht has been allocated for the three-year facelift that started two years ago, said general manger Gordon Aeria.
The hotel has already updated 135 guestrooms, the lobby, a kid's club, the swimming pool, two restaurants and the fire safety system. By June 2018, the hotel will complete the final 85 rooms and a Western-style restaurant.
Mr Aeria said tourism in Phuket had been affected by politics in the past but is now showing signs of improvement.
Apart from the renovations, the hotel is planning to focus more on emerging segments such as weddings, meetings and families, both from domestic and international markets. Some 80% of guests are foreign, but the hotel wants to emphasise the domestic market in the coming years.
Mr Aeria said the average occupancy rate of Dusit Thani Laguna Phuket for 2017 is expected to be 65% -- slightly lower than usual, due to the renovation process -- with the average daily rate (ADR) at 5,950 baht. But the occupancy rate is predicted to increase to 69% in 2018, and ADR will rise to 6,150 baht due to the makeover.
Mr Aeria said the tourism business in Phuket has been recovering over the last 18-24 months and is expected to fully bounce back soon.
He said the most important factor for the recovery is internal political stability, adding that tourism in Phuket has slowed down since 2012.
Other major factors for the recovery are the expansion of Phuket airport, which now offers more airlines and greater flight capacity. More direct flights from Europe, China and other parts of Asia have been added since October to cash in on the tourism recovery.
According to data from Airports of Thailand Plc, both domestic and international passenger arrivals via Phuket airport from January to October reached 13.8 million or a 10.6% increase from the same period last year. In October alone there were 1.34 million visitors, up 16.9% from the same month last year.
AOT reported a total of 31,138 flights being operated at the airport from January to October, up 41.2% year-on-year.
"With a total of 48 international flights in Phuket per day, tourism there is recovering, as many travellers are returning to the island," Mr Aeria said.
Meanwhile, Phuket is becoming a more international community for living, education and leisure, thanks to greater connectivity, with two major financial centres in Asia -- Hong Kong and Singapore -- just 2-3 hours away.
With its location, Phuket is being touted as a leisure destination for businessmen and their families. The island is also home to international hospitals and three international schools.
Moreover, a new initiative endorsed by the government allows foreigners investing in Thailand to get a visa for up to 10 years, attracting more long-term visitors.
Nevertheless, the island is being promoted as a cruise and marine tourism destination in the Southeast Asia region.
Top markets for the island are China, Russia, Europe and Southeast Asia. China became No.1 in arrivals several years ago, replacing European markets.
"Over the past five years, 70% of tourists came to Phuket via Bangkok and the rest arrived via direct flights," Mr Aeria said. "But with greater air connectivity and cruises, the percentage of direct arrivals has grown to 45%."
Due to the rosy outlook in the industry, many hotels and resorts have opened since 2016, including Rosewood, Hyatt Place, Sheraton, Marriott, Ibis and Novotel. Others are scheduled to open their doors next year, including JW Marriott.
The number of registered hotel rooms in Phuket is estimated at 97,000-98,000. That figure excludes more than 100,000 illegal rooms being operated through Airbnb, condominiums, villas and other forms of private accommodation.