Khao Lak and Phang Nga tourism sector gains momentum with infrastructure and hospitality investment
What their tourism industry is like now and how it will grow in the future
phuket touriTourism in Khao Lak and the wider Phang Nga province is demonstrating robust post-pandemic growth, underpinned by rising international arrivals, increasing hotel performance metrics, and new project developments across the hospitality and infrastructure sectors.
According to C9 Hotelworks’ Khao Lak and Phang Nga Hotel & Tourism Market Review 2025, Phang Nga recorded over 4.1 million guest arrivals last year, a 23% year-on-year increase. This upward trajectory continued into Q1 of this year with 1.1 million guests, up 9% over the same period since.
At the same time, from last year, European travellers accounted for 78% of international guests, reaffirming the province’s positioning as a key long-haul leisure market. Improved air connectivity and Thailand’s expanded visa waiver program for 93 countries have helped drive this demand.
In Khao Lak, hotel sector performance remains strong, with the average daily rate (ADR) increasing 7% in Q1 of this year. Revenue per available room (RevPAR) rose 6% over the same period, and occupancy hit 79%, up from 71% in the first quarter of last year. Market-wide occupancy also reached 75.1%, significantly higher than pre-pandemic levels than in 2019.
This growth has been accompanied by a new supply. One of the most significant developments is the opening of the Khao Lak Marriott Beach Resort & Spa. Situated on Bang Lut Beach, the 283-key property features a range of accommodation from standard rooms to private pool villas.
Facilities include seven dining outlets, multiple lagoon-style swimming pools, family and kids’ amenities, and a full-service wellness spa. This addition marks Marriott’s strategic expansion into Phang Nga’s high-growth hospitality corridor and reflects growing investor confidence in the destination.
Future expectations
Further development is underway with the upcoming Matalay integrated resort community, expected to be a mixed-use project comprising residential, hospitality, and retail components. Although full details remain forthcoming, the project is anticipated to be a long-term anchor for the region’s transformation into a high-value tourism and lifestyle hub.
Real estate activity is also on the rise. Land values in Phang Nga continue to appreciate, driven by upscale resort and villa development. Supporting this growth are infrastructure projects such as the proposed Andaman International Airport in Khok Kloi, which will span 7,300 rai with a capacity of 22.5 million passengers annually. Airports of Thailand (AOT) is currently exploring a public-private partnership funding model.
Meanwhile, the Maritime Hub Project, aimed at redeveloping marine transport routes between Phuket, Koh Yao, and Krabi, is slated for completion in 2027 and is expected to further enhance the province’s accessibility.
With key tourism indicators pointing upward and a pipeline of high-impact projects underway, Khao Lak and Phang Nga are solidifying their position as one of Thailand’s most dynamic tourism investment markets. Continued diversification of source markets and infrastructure-led development are expected to drive sustained growth over the medium to long term.
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