Connect with us

Economy

Phuket’s economy is more than just tourism

Published

 on 

by Bill Barnett

While Phuket’s brand and economic reality is that nearly half of its contribution to GPP (gross provincial product) comes from tourism is true, it’s important to understand that there are other generators that will aid in the island’s post-crisis recovery. 

The island’s real estate sector, that currently has a market value of over 100 billion baht (according to data from FazWaz) in primary and secondary properties for sale, demonstrates the scale and contribution to employment and services. 

It’s not all about tourism.

According to our newly completed Phuket Economic Overview by C9 Hotelworks, 87% of foreign work permits as issued to nationals of Laos, Cambodia and Myanmar and are highly leveraged in commercial construction, real estate and hospitality. Other nationalities total 9,835 work permits across the broader economic strata. 

International schools, attracting both local and foreign residents, Thais from Bangkok and regional expatriate families, represent almost 4,000 students. Thailand’s non-immigrant ED-dependent visas also have an allowance for parents of students under 20 years of age to obtain a visa, which waterfalls into the property and services sector as well. 

Other key demand-generators include international standard hospitals, marinas and a growing retail marketplace. While these have a linkage to tourism, their underpinned recurring cash flows are from full and part time residents, both Thai and foreign. 

Post-crisis, Phuket’s scale of services, education, health and wellness, real estate, retirement and sports is likely to see growth as a result of a shift in trends towards quality of life in a resort type island community. 

Mounting concern in Bangkok and other Asian gateway CBD areas over air pollution for families with school age children is another macro element that makes Phuket an alternative home base. This is further amplified with the new norm of working remotely and video networking. 

Phuket, like most of the world for the remainder of 2020 and in the medium term, will be challenged economically, but the notion that the future is hinged only on tourism is wrong, once you get beyond the beach and look at other scalable business models. 

To read and download the C9 Hotelworks Phuket Economic Overview, click HERE.

Phuket's economy is more than just tourism | News by Thaiger Phuket's economy is more than just tourism | News by Thaiger

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Bill Barnett has over 30 years of experience in the Asian hospitality and property markets. He is considered to be a leading authority on real estate trends across Asia, and has sat at almost every seat around the hospitality and real estate table. Bill promotes industry insight through regular conference speaking engagements and is continually gathering market intelligence. Over the past few years he has released four books on Asian property topics.

Follow Thaiger by email:

Thailand14 hours ago

Thailand News Today | Opposition to extending nightlife to 4am

Crime14 hours ago

Police officer who shot noodle vender sentenced to 25 years

Road deaths14 hours ago

Truck overturns in NE Thailand, driver dies, losing 1.5 million baht of beer

Sponsored2 days ago

British International School, Phuket: Reflecting on 25 years of world-class education

Transport14 hours ago

Thailand Transport Ministry seeks foreign loans for new bridges

Central Thailand15 hours ago

Elephant calf stamped to death in central Thailand

Chon Buri15 hours ago

Mountain B Pub’s real owner surrenders while police guard venue

Join the conversation on the Thaiger Talk forums today!
Road deaths15 hours ago

Motorcycle rider killed in multi-vehicle pile-up near Bangkok

Crime15 hours ago

Hong Kong man goes to Thailand to meet ‘lover,’ gets trafficked to Myanmar

Thailand16 hours ago

A monk dies in yet another day of Buddhist shame in Thailand

Economy16 hours ago

Electricity prices soar 18% to 4.72 baht per unit next month

Best of16 hours ago

Top 5 Boarding Schools in Thailand (2022)

Crime16 hours ago

Four national park officials indicted over Karen activist’s murder in western Thailand

Thailand17 hours ago

100 Consecutive Days of food handouts to the homeless of Bangkok

Protests17 hours ago

Nearly 1,000 locals protest over fatal road in central Thailand

Insurgency18 hours ago

Landmines kill 1, injure 10 in Deep South of Thailand

Thailand11 months ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand1 year ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism1 year ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket1 year ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism1 year ago

Phuket Thai food treats you need to try | VIDEO

Thailand1 year ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism1 year ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending