Phuket

Thailand’s biggest island is found in the southern province of Phuket, also home to almost 100,000 foreigners. Located in the Andaman Sea off Thailand’s west coast, this tropical paradise—which has a total area of 576 square kilometers—is the second-smallest province in Thailand. Despite its small scale, Phuket is a gem in Thailand’s crown because of its interesting past, amazing landscape, and thriving travel industry.

The island’s favorable location along significant trade routes between China and India has developed and changed it over time. For millennia, Phuket has been a hub for world trade; several European superpowers, including Portugal, France, the Netherlands, and England, have shown interest in this major center. Phuket was able to retain its independence in spite of this foreign interest, thus it is remarkable that it never succumbed to European colonization.

Phuket’s economy has changed significantly throughout years. Originally, most of the wealth of the province came from the manufacturing of rubber and tin, which set its basis for development. But using its natural beauty and cultural appeal to attract millions of visitors annually, Phuket has turned tourism into its main revenue source in recent years.

Like its geography, Phuket’s past is varied. The topography of the island is mountainous; a notable mountain range runs from north to south along its western coast. This range spans roughly 440 kilometers from the Kra Isthmus and is the Phuket mountain range. Rising breathtakingly 529 meters above sea level, Khao Mai Thao Sip Song is the highest point on the island. Recent studies, however, suggest that there might be an unidentified peak in the Kamala hills behind the Kathu waterfall rising to a likely height of 542 meters.

Phuket appeals not only for its main island. Every one of the thirty-two smaller islands that comprise the province accentuates the natural beauty and ecological variety of the region. Notable ones of these are Ko Lone, Ko Maprao, Ko Naka Yai, Ko Racha Noi, Ko Racha Yai, and Ko Sire. Apart from accentuating Phuket’s inherent attractiveness, these surrounding islands offer more opportunities for travel and discovery.

The expansion of Phuket’s tourism industry depends critically on improvements in infrastructure there. Starting in September 2012, Phuket International Airport—the gateway to this tropical paradise—had a significant expansion project under way. With a budget of 5.7 billion baht, the expansion meant to double the annual passenger handling capacity of the airport from 6.5 million to 12.5 million. This development included building a new international terminal to manage the rising visitor count for the island.

With almost 10 million visitors, mostly from overseas, Phuket’s tourism sector had a noteworthy year in 2017. China started ranking highest among foreign visitors during this period. With almost 385 billion baht in income—nearly 14% of Thailand’s whole tourism receipts that year—Phuket had a notable economic impact from tourism.

Still, Phuket’s travel sector has not been without challenges. The local hotel business suffered as tourist arrivals fell in the first half of 2019. This drop in revenue per available room (RevPAR) came from declining hotel occupancy rates as price competition among lodging establishments grew. Analyzes blamed this drop on fewer visitors as well as an excess of hotel beds. The 3.1% increase in tourism-related income observed by the Tourism Authority of Thailand for the same period shows the resilience of the travel sector in face of challenges.

The hotel business has expanded greatly to handle the millions of visitors to Phuket annually. Though exact figures vary, estimates place Phuket’s hotel room count—excluding villas and hostels—between 40,000 and 93,941. The differences in these numbers show the dynamic nature of Phuket’s hospitality industry and the ongoing development of fresh lodging choices to meet guest demand.

New developments in Phuket’s real estate market have occurred lately. A migration of Russian and Ukrainian people caused a notable 15% increase in property values on the island in 2023. Particularly in the luxury market, 541 luxury villas launched in Phuket in the first half of 2023, valued at a total of 29.6 billion baht, stood particularly conspicuous. With values of 886 million baht sold the year before, this marked a clear increase over the 45 units, indicating a rising demand for luxury real estate on the island.