The importance of the tourism sector in Phuket
The tourism and hospitality industry of Phuket is very important for the entire kingdom of Thailand, as well as the island itself. A large number of local and foreign visitors arrive in Phuket each year, making it one of the nation's most popular destinations for tourism. Phuket’s revenue from the tourism sector makes a sizable contribution to the country's economy compared to other regions in the kingdom. Many Thais found employment opportunities in the tourism sector during recent decades, both directly and indirectly. The tourism sector supports several other related industries, including retail, accommodation, food and beverage, and transportation and logistics. Given its importance, the sustainable growth and ongoing success of Phuket's tourism and hospitality industry is crucial to the country's overall economic growth and national branding as a prime travel destination. Visitors from Russia to Phuket were not only the largest group pre-pandemic but are still dominating tourist numbers on the Andaman island after Thailand relaxed travel restrictions in late 2022.Economic diversification in post-pandemic Phuket
While tourism is expected to continue to be a key component of Phuket's economy, it is equally crucial for the region to diversify its sources of income to reduce reliance on a single industry. Therefore, businesses in Phuket are trying to shift to sectors like international education, medical services, marinas, and tuna exports, as well as trying to establish the island as an exhibition and convention hub, to create a new revenue structure on the island.With an increased sales rate for all residential categories in the second half of 2022, the tourism industry recovery had a significant influence on the revival of housing demand in Phuket. Another significant event shaping the real estate sector in Phuket is the Russian invasion of Ukraine, which triggered an influx of Russian long-term tourists and digital nomads, fearing military draft and economic challenges in their home country. Because of that, the value of condominium sales to foreigners in Phuket rose drastically in 2022, and the total value of condominium sales to Russian buyers outpaced even pre-pandemic levels.
