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Phuket hotels begin to rebuild in face of soaring cancellations

Dennis Eng

As Phuket's luxury hotels struggle to resume operations, they are facing a high number of cancellations.

The hotels are popular with foreign tourists, including holidaymakers from Hong Kong, but occupancy rates are down to between 40 and 50 per cent, compared with the usual 90 per cent at this time of year.

'We are getting many cancellations every day,' a spokesman for the Banyan Tree Phuket said.

Since the tsunami struck, a number of luxury properties have managed to minimise further disruption to guests, even reopening some damaged facilities.

Two beachfront restaurants at the Sheraton Grande Laguna Phuket suffered water damage but one is already in business.

The other, a Thai restaurant, should open in one to two months.

'We were planning to remodel the restaurant anyway. We just pushed the plan forward after the tsunami struck,' a hotel spokesman said.

But not all luxury hotels escaped so lightly.

One of the worst hit was Le Meridien Phuket Beach Resort.

The lower floor remains flooded, with all 32 guest rooms affected as well as some of the restaurants, swimming pool and office areas.

The resort has no electricity and is temporarily closed.

A spokeswoman said management may know when the resort would reopen by the middle of next month.

The executive director of the Hong Kong Hotels Association, James Lu Shien-kwai, said he expected many of Phuket's popular resorts to become fully operational by August.

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