China slump no drag-on for Phuket, says property tycoon
Tourist hotspot bets big on high-rollers from Hong Kong and Middle East
Fears that China’s economic slowdown could batter Thailand’s tourist trade have been brushed aside by a luxury property boss, who insists Phuket is still booming thanks to big spenders from elsewhere.
Phuket’s posh property scene is still sizzling despite fewer Chinese tourists hitting the island and one property mogul reckons it’s all just a blip.
Allan Zeman, chairman of the Lan Kwai Fong Group, says the dip in Chinese arrivals is only a temporary wobble caused by fears over call-centre scams in neighbouring Myanmar and a recent earthquake scare in parts of Thailand. But he insists the downturn won’t last.
“China still has a population of 1.4 billion, they’ll be back.”
Zeman, the brains behind the Andara Resorts and Villas, said his luxury lodgings in Phuket saw plenty of Chinese tourists over the Labour Day Golden Week and reckons the island’s star is still rising with high-end holidaymakers and long-stay expats.
While Chinese visitors might be cautious for now, Phuket is becoming the new playground for Russians fleeing the Ukraine conflict, as well as jet-setters from the Middle East escaping sweltering summers, said Zeman.
“There’s no such thing as a low season anymore. Occupancy rates are solid all year.”
Lan Kwai Fong Group is now banking on that bullish trend with the launch of a swanky new development: Sudara Residences. The first phase boasts 220 premium units priced between 10 and 30 million baht, with around 50 already snapped up, mainly by wealthy expats from Hong Kong and Singapore.
Jason Thelen, senior sales and marketing director at Sudara, added that “these aren’t your average Phuket shoeboxes.”
“Our one-bedrooms are 52 square metres. Most Chinese buyers want half that size and a much lower price point.”
Zeman revealed that the next phase of Sudara may include a hotel, with plans to expand the brand through management deals in hotspots like Bangkok. His group is also sinking cash into real estate in China, targeting Chengdu, Xi’an, and Hainan, Bangkok Post reported.
And with Thailand eyeing legalised casino gambling, Zeman, who also sits as non-exec chairman of Wynn Macau, believes integrated resorts are the way forward, citing Macau’s transformation from a “backwater” into a global gaming powerhouse.
“Macau used to be nowhere. Now it’s booming and 88% of its revenue comes from entertainment complexes.”
Wynn Resorts, the parent company, is now betting big in the Middle East, too, with a glitzy new casino resort in Dubai slated to open by 2027.
Back in Phuket, Zeman says the real gamble would be underestimating the island’s growing global appeal.
“Phuket’s got the flights, the foreigners, and now the five-star living. The Chinese slowdown won’t stop that.”
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