AIMING FOR THE RICH
In the eyes of many Phuket does not need more tourists, but needs richer tourists instead. In fact they say it needs the ultra-rich. One of the reasons for this argument is that one really high-end visitor spends as much as 50 package tourists but puts only 1/50 of the strain on the infrastructure. And that high-end tourist’s money is spent in Phuket, not at a travel agency abroad.
In the past, the Tourism Authority of Thailand (TAT) has in the past said it is willing to attract ‘high end’ tourists. But in recent years Phuket has been hit by so many global events that had an negative influence on tourism that simply filling up all the hotel rooms has been the main target of TAT. It started in 2001 with 9/11 and the subsequent wars in Iraq and Afghanistan. Then there was SARS, bird flu, the Tsunami, the military coup in 2006. More recently we have the Mexican (swine) flu and the political turmoil in Bangkok which put people off visiting Thailand. The global economic crisis has made quiet a few well off people being less well off, and some rich people wanting to spend less money.
So it has been up to the private sector to try to provide the pleasures and facilities the super rich expect to get when going on holiday. This has been done with varying levels of success. The very high end property market has been surprisingly resilient, taking in consideration that some properties have price tags of USD 6M and more. This has also increased the market for luxury properties for holiday rentals which is something Phuket did not have about five years ago.
Luxury items like good wine or Cuban cigars are now readily available with some companies even delivering these goodies at your door at any time of the day and night. Recently a second marina for super yachts has opened in Ao Po and is rapidly filling up. The management of Phuket International Airport has plans to build a terminal for private jets (see: http://www.phuket-tropical-realestate.com/blog/?p=75); five years ago the arrivals of private jets in Phuket could be counted on the fingers of one hand. Now there are private jets arriving daily.
Luxury restaurants serving all types of international food are easy to find. European-style nightlife venues are now also all over the island. The only downturn to this is that the opening hours are still restricted. Many of these clubs are forced to close their doors at a time many Europeans actually just start to party.
There is still a lack of luxury cars for rent on the island and there is only one car dealer that sells high-end imported cars. The Ferrari dealer in Bangkok considered opening a branch in Phuket has put these plans on hold for the time being. Also for buying a Rolls Royce, Lamborghini or Porsche you still need to pay a visit to the City of Angels.
A few years ago the Thai government decided to drop as good as all the taxes on imported boats. This resulted in an instant boom in the Phuket marine tourism industry. It is now very easy to rent a luxury yacht with crew, including bar staff and gourmet food from one of the many companies offering luxury yacht cruises in Phuket.
For those who prefer the airspace instead of the water, there are now two companies offering chopper charter flights and Phuket Bangkok Hospital’s emergency helicopter is also available for joyrides when it is not being used for transporting the sick.
For those with their own light aircraft there is now a strip near the island’s east coast. There are land plots for sale for those who want to build their home with hangars next to the strip.
Overall the private sector has achieved a great deal at the luxury end of Phuket’s tourism market, which has in the process helped to fuel an increasingly high end property market.
