Tourism and Property Surge in Phuket

Exotic Thailand has long been Asia’s top tourist destination and maintains its world-class standards to capture an ever increasing international market.  In particular, Phuket contines to welcome a huge influx of tourists.  Arrivals in Phuket reached 4.7 million in 2006 which, in turn, produced tourism-related spending of US$1.7 billion, up 87% from 2005, according to research from the Kasikorn Bank’s Research Centre.  Meanwhile, forecasts this year are for some 5.2 million tourist arrivals in Phuket, spending US$2 billion. 

Thailand as a whole offers a world class tourist industry at affordable prices, making it a magnet for visitors, re-locators and property investors alike.  In many key locations in Thailand such as Phuket, the local economy relies heavily on tourism.  The booming tourist sector in Phuket keeps the property market strong, with many major institutional investors entering the market - all great news for today’s investors, particularly those purchasing involved with new luxury hotel chains, managed properties and related buy-to-let purchases.

Increased tourist numbers are being driven by the emergence of low-cost carriers serving Thailand. Tiger Airways now flies three times daily from Singapore.  Jetstar Asia has started direct flights from Sydney and Dragonair recently resumed daily flights from Hong Kong. Direct flights from the Middle East are currently in final stages of negotiation and are also due to commence in the near future.