Connect with us

Business

Phuket’s infamous inflation linked to economic growth

Legacy Phuket Gazette

Published

 on 

PHUKET: Phuket inflation grew at a rate of 4.1 per cent in 2014, according to data released in C9 Hotelwork’s new Economic Overview of the island.

What is clearly demonstrated in the numbers is how important tourism is as a driver of the economy. Using Gross Provincial Product (GPP) as the lead indicator, tourism directly accounts for 35.6 per cent of the island’s economy, while the total exceeds 50 per cent of the expanded economy when looking at related sectors, such as transportation, health and financial services, which see strong tourist input.

According to C9’s Managing Director Bill Barnett, “at face value the rising cost of living has caused concern among local residents, yet the reality is that inflation is a barometer of economic growth. Our research into consumer behavior on the island clearly indicates that higher prices are correlated with greater spending power.

“In a nutshell, pricing is driving the underlying numbers when comparing Phuket to the national Consumer Price Index. While Thailand’s Gross Domestic Product is relatively flat, the tourism sector dominates the local economy and has continued to expand.”

One lead indicator is the real estate sector, which accounts for 4.5 per cent of GPP and builds favorable domestic and foreign investment sentiment. Currently the luxury villa estate market has a pipeline exceeding US$500 million including Avadina Hlls, Andara Signature, Anantara Residences, Layan Beach, Point Yamu by Como, and the new Rosewood and MontAzure projects under development. Phuket has continued to see traction at the top end of the property market.

As part of their economic review, C9 undertook a Thailand ‘Pad Thai Index’, based on that iconic dish at food courts in five key cities across the country. Phuket ranked at the top at 55 baht, well above the cost of the same dish in Bangkok.

To read the full Phuket 2015 Economic Overview visit thephuketinsider.com.

 

Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forums
🔔 Subscribe to our daily email newsletter
📺 Subscribe / Join YouTube for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram

image

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.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Best of4 hours ago

Top 5 Wine Bars in Bangkok with Delivery

Best of4 hours ago

The Best Bakeries in Bangkok with Delivery

Coronavirus (Covid-19)5 hours ago

More Pattaya people arrested drinking alcohol, violating Covid measures

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

Best of5 hours ago

5 of the most appealing Phang Nga hotels

Phuket6 hours ago

“Phuket Sandbox” still on, provincial restrictions set after uptick in Covid-19

Thailand6 hours ago

Thailand News Today | Boss indictment, Pattaya arrests, bubble burst | July 27

image
Join the conversation on the Thaiger Talk forums today!
Best of7 hours ago

Top 5 bars in Pattaya

Thailand7 hours ago

UPDATE: Dying Samut Prakan mother tells daughters to go to orphanage

Best of7 hours ago

Top 5 Thai restaurants in Krabi

Drugs7 hours ago

Hong Kong officials seize 61 kilograms of heroin shipped from Bangkok

Best of7 hours ago

Koh Pha Ngan’s 5 best resorts

North East8 hours ago

Couple “drops off” Covid infected 80 year old father at Korat temple, drive off

Coronavirus (Covid-19)8 hours ago

Phuket officials add new layers of restrictions, Central closed for 7 days

Thailand9 hours ago

Korat construction camp closed following Covid outbreak

Coronavirus (Covid-19)10 hours ago

Tuesday Covid Update: 14,150 new cases; provincial totals

Thailand5 months ago

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

Tourism5 months ago

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

Phuket5 months ago

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

Tourism5 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand5 months ago

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

Tourism5 months ago

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

Thailand6 months ago

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

Thailand6 months ago

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

Thailand6 months ago

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

Thailand6 months ago

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

Thailand6 months ago

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

Thailand7 months ago

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

Thailand7 months ago

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

Thailand7 months ago

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

Thailand7 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Trending