Khao Lak and Phang Nga Hotel & Tourism Market Review 2026

Overview

As high barriers to entry and a shortage of iconic locations push luxury developers to look beyond Phuket for top-end sites, ultra-luxury development is shifting north into Phang Nga’s oceanfront. The Khao Lak and Phang Nga Hotel & Tourism Market Review 2026 examines this shift across the province and its Khao Lak resort cluster. In Khao Lak, hotel performance trends are led by rate, with the average daily rate (ADR) up 26.2% year-on-year in the first quarter of 2026. Phang Nga tourism revenue reached THB56.6 billion (USD1.7 billion) in 2025 on 4.3 million visitor arrivals.

Key Sections Covered

• Khao Lak Hotel Performance Trends
• Phang Nga Tourism Demand, Visitor Arrivals and Tourism Revenue
• Phang Nga Southern Provinces Ranking
• Outlook and Phang Nga Hotel Pipeline

Investor Highlights

1.   Khao Lak Hotel Performance Trends are Led by Rate, Not Volume

Average daily rate rose 26.2% year-on-year in the first quarter of 2026, extending 2025 gains, when monthly increases ranged from 18.2% to 46.4%. Occupancy, by contrast, turned negative year-on-year from March 2026, and revenue per available room (RevPAR) turned negative in April and May as the Middle East conflict and higher airfares softened international demand.

2.   Visitor Arrivals Held Steady as the Wider Southern Region Contracted

Phang Nga visitor arrivals reached 4.3 million in 2025, up 1.1% year-on-year and a 13% compound annual growth rate (CAGR) from 2023 to 2025, while Thailand’s Southern region (14 provinces) decreased by 0.6% over the same period. Tourism revenue rose 2% to THB56.6 billion (USD1.7 billion), ahead of the 1.1% increase in visitor arrivals.

The 2025 gain was domestic-led: international visitor arrivals held at 2.61 million, down 0.2%, while domestic visitor arrivals rose 3.2% to 1.7 million. Visitor arrivals rose a further 2.7% year-on-year in the first quarter of 2026, before international demand softened from March.

3.   Phang Nga Ranks Fourth by Revenue but Sixth by Visitor Volume

As of May 2026, Phang Nga ranked fourth of the 14 provinces in Thailand’s Southern region by tourism revenue, behind Phuket, Surat Thani and Krabi, but sixth by visitor volume, a sign of higher spending per visitor. In 2025, international visitors made up 61% of visitor arrivals but 76% of revenue, spending more than double per head (THB16,543) than domestic visitors (THB7,926). With 2025 growth outpacing a contracting region, this top-end positioning continues to draw luxury developers north from Phuket into Phang Nga.

4.  The Outlook Points to Top-End Development Shifting North from Phuket into Phang Nga

As high barriers to entry and a shortage of iconic locations push luxury developers to look beyond Phuket for top-end sites, ultra-luxury development is shifting into Phang Nga Bay and the coastline north of the Sarasin Bridge, from Natai to Thai Muang, where oceanfront sites support full-service resorts rather than commoditized, box-type product. The active pipeline consists of 315 keys, led by the InterContinental Phang-Nga Bay Resort (150 keys, 2028) and Kimpton Natai (150 keys, 2027), alongside a 15-key expansion of Khaolak Paradise Resort in 2026.

Meanwhile, Khao Lak is maturing as a market, helped by four-lane access from Phuket International Airport and the 170-hectare Matalay integrated resort community, featuring five international-standard resort sites.