PHUKET, THAILAND – Phuket moved toward record tourism income in 2024 despite welcoming fewer visitors than before the pandemic.
Record income with fewer visitors
By October 2024, tourists had generated 442 billion baht in revenue for Phuket, bringing the island close to its annual target of 550 billion baht. This was achieved even though arrivals remained below the peak levels of 2019. Officials said visitors stayed longer and spent significantly more during their trips.
Focus on respectful, longer-stay guests
“We prioritized tourists who respected Thai laws and culture, stayed longer and spread their spending widely.”
said Thanet Tantipiriyakit, head of the Phuket Tourist Association.
Under the new strategy, authorities focused on attracting guests who spent money beyond large resorts. Spending increasingly flowed into local shops and communities, in line with the island’s push for broader economic benefits.
Smaller but wealthier Chinese market
The revised approach was already visible in the Chinese market, where arrivals remained about 50% below 2019 levels. Those who visited were wealthier, stayed an average of seven nights instead of two and spent 4.3 times more money than before. Their expenditures no longer went exclusively to big hotels but also to smaller businesses and neighborhood enterprises.
Infrastructure strained by luxury shift
The move toward a higher-end tourism profile increased pressure to tackle basic infrastructure problems. Each day the island generated about 1,200 tons of waste, of which only 700 tons could be treated. Roads were congested, the airport was overloaded, and more than 5,400 of over 6,400 accommodation providers operated without licenses.
Call to legalize and regulate lodging
Thanet urged lawmakers to respond to widespread non-compliance in the accommodation sector. He called for parliamentary action to legalize unregistered establishments and enforce minimum standards. Bringing thousands of properties into the formal system was seen as vital to maintaining quality and protecting Phuket’s reputation as it moved upmarket.
From party hotspot to wellness and sustainability
The new course also reshaped the type of guests the island sought to attract. Phuket increasingly targeted visitors who valued wellness, sustainability and local experiences rather than short, low-cost party trips. The island promoted itself as a “Happiness Island for All”, backed by major wellness events and a bid to host a special world exhibition in line with that image.
Hotel room levy funds premium positioning
The financial backbone of this repositioning was a 1% fee on every hotel room, which contributed almost 300 million baht per year to marketing. With that budget, the Phuket Tourist Association funded up to 14 international roadshows annually to promote the island as a high-end destination. The message to global markets was that Phuket no longer saw itself as a bargain destination but as a premium travel choice.
End of mass tourism era
Local tourism leaders described the current phase as the end of pure mass tourism on the island. Phuket aimed to join the ranks of the world’s most exclusive destinations by focusing on high-quality, respectful visits. The strategic shift toward “quality tourism” raised questions over how much change the island could absorb and what it would mean for more price-sensitive travelers.