Phuket Hotel & Tourism Market Update 2026

Overview

Phuket is entering its next growth cycle, supported by infrastructure expansion and regulatory reforms. Planned airport upgrades and new transport infrastructure are expected to alleviate capacity constraints and improve island-wide connectivity. Concurrently, stricter enforcement of unlicensed accommodations, revised building height regulations, and new zoning frameworks are formalizing the market and enabling more efficient, higher-density developments. Together, these factors position Phuket to transition toward a more structured real estate market.

Tourism Overview

Despite a decline in Chinese arrivals, Phuket welcomed 8.8 million passenger arrivals in 2025, supported by growth across diversified source markets. Looking ahead, Chinese tourism is expected to gradually recover alongside continued expansion from emerging markets such as India, South Korea, and Israel.

Ongoing geopolitical tensions have positioned Thailand as a safe and neutral destination, while strengthening its role as a regional transit hub connecting Australia and New Zealand with Europe and other global markets. This shift is expected to support additional passenger arrivals and increased transit traffic through the country.

Hotel Market Performance

ADR rose 5% despite a 6% decline in occupancy. As additional hotel supply enters the market and regional competition intensifies, ADR growth is expected to moderate toward more sustainable levels.

Phuket’s tourism landscape is highly segmented, with distinct locations catering to different demand profiles and positioning.

• Luxury Markets: Surin commands the highest ADR and lowest occupancy rate in Phuket, with 21% growth in ADR but 9% drop in occupancy. Mai Khao ranks second in ADR, both driven by luxury resorts and its secluded beachfront setting.
• Integrated and Upscale Resorts: Bangtao recorded a 2% decline in occupancy rate while achieving a 20% increase in ADR. Meanwhile, Kamala, known for its upscale family-oriented resorts, continues to command 40% higher ADR than Bangtao despite slower growth and 24% decrease in occupancy rate. 
• Mass & Tourism Clusters: Patong, a tourism hotspot for budget travelers, records the highest occupancy in Phuket despite an 8% decline this year. Karon and Phuket Old Town cater to similar demand segments with economy and midscale accommodations.

Hotel Pipeline

Phuket’s hotel pipeline from 2026 to 2030 includes 41 projects, with total market supply expected to surpass 100,000 keys by 2026. Bangtao/Cherngtalay continues to lead future supply, accounting for approximately 30% of the pipeline, with a high concentration in the upper-upscale segment. 

Future Outlook

Beyond airport expansion to accommodate growing tourism demand, zoning reforms and integrated developments are reshaping key areas such as Bangtao into more structured urban clusters, reflecting Phuket’s evolution from a resort-driven island into a more institutionalized tourism market.

Key Sections Covered in the Report 

• Phuket Airport Expansion
• Tourism Overview 
• Hotel Market Performance
• Hotel Pipeline
• Future Outlook 

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