The Bangtao Effect: Phuket’s New International Coastal Hub
Phuket Economic Overview May 2020
May 2020
Category: Economic
Overview
Phuket’s economy heavily relies on tourism. In 2019, the accommodation and food services sectors made up nearly 50% to its total GPP. Due to the negative impact of the COVID-19 outbreak on tourism, the critical economic questions facing the island remain is it too big to fail, and is it time to diversify industries?
PHUKET PROPERTY MARKET VALUE
With over 80,000 registered accommodation keys in Phuket, restoring overseas travel is a lever towards injecting cash flow into the tourism sector and stabilizing businesses.
Looking beyond Phuket’s tourism sector, other key demand generators such as international schools and hospitals, real estate and the marine industry are key contributors to the island’s economic profile and have the opportunity to tap broader demand.
Phuket’s economy for the remainder of the year will rely primarily on the resilience of its tourism industry. In the longer term, the island’s immediate need for a comprehensive tourism master plan is a recurring challenge that must be addressed. A rise in public private partnerships over the next two to three years is expected, which possibly could be tapped to fund infrastructure development.
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C9 Insider opinions
1
Phuket’s tourism growth reflected a 4% y-o-y growth in total passenger arrivals at Phuket International Airport.
2
Thai baht appreciation against key global currencies and the China economic slowdown along with the US trade war issue muted macro economic prospects.
3
Branded residences in Phuket became a majority segment in the hotel pipeline reflecting a surge in investment-oriented property buyers.
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