Connect with us


Phuket’s infamous inflation linked to economic growth



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


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.

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

Follow Thaiger by email:

Songkhla5 mins ago

Songkhla factory fire injures 2

Malaysia17 hours ago

Malaysian beauty salon gets makeover as dentistry school

Thailand19 hours ago

Northern floods tragedy – Monks unable to help

Tourism19 hours ago

Xi’s Bangkok APEC trip to open tourist floodgates

Pattaya20 hours ago

Police to curb Pattaya Beach drinking after student gun fight

Phuket21 hours ago

9th and 10th monkeypox infections found in Phuket

Join the conversation on the Thaiger Talk forums today!
Coronavirus (Covid-19)22 hours ago

Face masks still required on public transport, in cinemas

Cannabis News22 hours ago

Pattaya man attacked at gunpoint for selling cannabis

Crime23 hours ago

Police seize 60 suspects in online ‘ghost guns’ sting

Thailand23 hours ago

Bangkok Secret Nightlife – Bangkok Red Light District Secret Museum

Coronation24 hours ago

King Charles III debuts on UK coins

Politics2 days ago

Vladimir Putin officially annexed four parts of Ukraine

Transport2 days ago

Phuket Airport officials pulled tourist from van, insisted they use airport taxi

Thailand2 days ago

Thailand’s strange laws – 10 strange laws in Thailand

Politics2 days ago

The long goodbye – Which way now for PM Prayut?

Thailand1 year ago

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

Thailand2 years ago

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

Tourism2 years ago

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

Phuket2 years ago

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

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

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

Tourism2 years 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