Tourism directly accounts for 35.6% of Phuket’s economy according to a new report released by hospitality consulting firm C9 Hotelworks. Whereas the sector is the leading indicator of GPP (Gross Provincial Product), the reality is that once you add in the expanded influence over other components that make up the island’s GPP, the reality is that well over half of the Phuket economy is derived from tourism.
In C9′s just released Phuket 2015 Economic Overview the inflation rate of 4.1% for the full year 2014 well outpaces the national average including Bangkok. Despite a rise in the cost of living, the report points out that rising inflation is directly linked to the island’s economic growth and there remains considerable upside in both basic necessities and discretionary spending of Phuket residents.
Aside from tourism, real estate accounts for 4.5% of GPP. Viewing the current incoming pipeline of new luxury villa estates such as the newly launched Avadina Hills, Anantara Residences Layan Beach, Andara Signature and Point Yamu by Como there are a string of multi-million dollar projects such as Rosewood and MontAzure in the works. C9 has forecasted the value of the incoming and launched luxury properties for sale at an amount exceeding USD500 million. What is evident from the data is that both domestic and foreign investment sentiment in the island remains strong.