What is the current economic situation in Phuket?

What is the current economic situation in Phuket?

The COVID-19 pandemic has hit Thailand's most tourist province, Phuket. Since March 2020, the island has been closed, there were no tourists at all. Later, government began to attract tourists by Phuket Sandbox.

Due to the crisis in Phuket over the past 2 years, many resort real estate projects have been put up for sale. There are people who are interested in investing in such projects. This is how the real estate investment market is reviving. The prices for investment in hotels start from 1,000 million baht and reach 2,000 million baht.

Things are not so positive in the condominium market. The main buyers of apartments in Phuket were customers from China and Europe. Chinese buyers accounted for 60% of the total, Europeans at least 30%. Some experts suggest facilitating the process of buying an apartment remotely in order to attract foreign buyers.

The government is determined to attract investors and tourists from other countries. Work continues on GEMMMSST plan (gastronomy, education, medicine and wellness, marine tourism, sports and entertainment events, smart city and tuna production centers). In the course of this plan, international-level schools are being opened and developed, the quality of medical services is being improved, new ports for yachts are being opened. Sea cruises from Singapore have also been created, and new direct scheduled flights from Mongolia have appeared.

GEMMMSST model is expected to generate more than 50% of tourism revenue, or about 200 billion baht, over the next 5-7 years.

Phattanan Phisutvimol, president of Phuket Real Estate Association, said that the market for foreign customers has sunk significantly. Now you can find luxury villas from 50 million baht to 500 million baht.

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