Many businesses have written off the high season, with empty hotel rooms, lonely dive vessels, and the number of international and domestic passengers flying into Phuket plummeting.

But although things look grim, there is light at the end of the tunnel.

There are still plenty of people on the beaches and in the shopping malls, and Bangla Road is pumping nearly every night.

And many long-term bar operators are counting on an influx of Aussies between March and October.

“That’s when it’s winter in Australia, and there are always cheap airfares and accommodation deals,” said Neil Cheyne, who runs the popular Lilly’s Aussie bar in the OTOP Market Square in Patong.

Graham Bibby, who heads the Richmond Group is also confident things will get better.

“We still have our beaches, and great weather, and there are new shopping malls popping up everywhere,” he said.

“Phuket is still evolving with better roads and plans to expand the airport.

“When the world’s financial woes turn into boom times again, which they will, Phuket will be in great shape, and the tourists will come back again.

“Property prices in Phuket are still firm, which is a sign of a healthy market.”

According to official Airports of Thailand figures for January last year, things were a lot better than 2007, with 1877 international flights, bringing in 281,959 passengers, a 9.25 per cent increase in the number of flights and a whopping 23.10 per cent rise in passenger numbers.

In January 2007, there were only 1718 international flights, carrying 229,054 passengers in and out of Phuket’s International Airport.

This year, international flights are down to 1695 flights, and the number of passengers in January fell by 10 per cent to 251,640.

There were 2278 domestic flights in January last year, with 353,101 passengers, a 25.5 per cent increase on 2007, but only a 3.63 per cent rise in the number of passengers.

In January this year, the figures are down, with only 1772 domestic flights for the month, down 22.2 per cent on last year.

Passengers were down to 310,917, a drop of 11.95 per cent.

There has also been a downturn in hotel bookings across the board, from five-star 500 room luxury beach resorts to the smaller guesthouses.

The five-star Trisara Hotel on Naithon beach was running at 78.5 percent occupancy in January last year, but this year, the figure dropped to 58.5 per cent.

The up-market Amanpuri resort on Pansea beach had an impressive 90.4 percent occupancy last January compared to 69.92 per cent this year.

Twinpalms Phuket in Surin had an 80 per cent occupancy in January last year, but that figure has dropped to 70 per cent this year.

The 530-room Katathani hotel on Kata Noi beach has only experienced a three per cent decline, from 88 per cent occupancy last January to 85 per cent this year.

The Hilton Phuket Arcadia in Karon reported a 21 per cent fall in occupancy in January, and tried to regain lost ground by offering discounts of up to 25 per cent on room rates.

The Holiday Inn Resort in Patong reported a drop from a staggering 96 per cent occupancy last January down to 81 per cent this year.

Boutique resorts have also felt the strain as many tourists put off their holidays.

The 12-room Surin Bay Inn has seen a decline in room occupancy from 92 percent in January last year to 71 percent this year.

Other boutique hotels report similar drops.

One guest house owner in Kata had nine of his 10 rooms empty.

Four and five star hotels are offering discounts on room rates, but many of the smaller guesthouses can’t match the massive price cuts the bigger hotels are offering.

Boost Guest House owner, Jerry Joyce, said smaller operators needed to take a different approach when attracting customers.

He offers guests free day trips to Phi Phi Island, and he says the bonus had helped him maintain a 98 percent occupancy during January.

He said the free day trips meant he still had a steady cash flow.

“But on a walk-in basis, things have started to peter out,” he said.

“At this time last year, I could expect 20 people a day to come in looking for a room.

Now it’s maybe two a day,” he said.

The diving industry has also been hit hard.

But with a one day dive trip costing around 3500 baht, and a four-day live-aboard trip upwards of 50,000 baht, it’s an expensive sport which has now become unaffordable for many tourists.

In November last year, Dive Asia launched their new live-aboard dive-boat, Dive Asia One, with a fully booked trip to the Similan island’s on what was thought
at the time was the beginning of a great diving season.

“We are still doing okay with the number of guests on our live-aboard trips, but these are bookings from before the problems in Bangkok occurred,” said Benno Brandon.

“We have no new bookings, and for the next high season, we have only two bookings.

At this time of the year, we would normally have 20 customers, but that figure has dropped to about eight a day.

“We are currently operating with less than half our usual guests for February,” he said.

“It’s the same story with all of the other dive operators.”

Realtors are also feeling the strain of the economic slowdown.

In January, Graham Bibby, told realtors and real estate agents they needed to revise their sales strategies if they wanted investors to keep buying in Phuket.

Sales advisor Nathanial Bibby said the number of people looking for property in Phuket had halved since January last year.

“But investors who are looking this year are serious buyers,” he said.

“The sales process is longer this year as investors more than ever want to be sure about what they are buying,” he said.

Mr Bibby said when there was a market slump, people usually looked to investment specialists with a proven track record.

“With our experience in investment management, we are still selling because we have a proven track record,” he said.

Bar owners are also reporting a slight rise in business.