PHUKET, 18 May 2020: Two questions that the latest C9Hotelworks report fathoms: Is Phuket too big to fail, and is it time to diversify industries?
Phuket’s economy relies heavily on tourism, but will the Covid-19 unravel the success of past decades and demand diversification? In 2019, the accommodation and food services sectors made up nearly 50% of the island’s gross provincial product (GPP).
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, says the report’s author Bill Barnett.
Looking beyond tourism, 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.
For example, in Phuket, foreign work permit holders, not related to construction, tally 9,835.
Over 4,000 international students attend schools on the island.
A primary and secondary real estate sector is valued at over THB100 billion.
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, said Barnett.
To download the report visit:https://www.c9hotelworks.com/news/new-c9-hotelworks-phuket-economic-overview-report