Phuket Urged to Develop New Strategy Amidst Growing Competition

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The Phuket Chamber of Commerce is calling on the private sector to devise a revamped economic strategy in response to mounting competition across Southeast Asia. Chamber President Kongsak Khoopongsakorn stressed the need for adaptation as the region’s economic landscape evolves swiftly.

 

Last year, the island saw a noticeable resurgence in tourism and a boost in local business operations. Despite global economic uncertainties and rapidly shifting business climates, technological advancements played a pivotal role in reinforcing the capabilities of local entrepreneurs, aided by multi-sector collaborations, noted Kongsak at the chamber's recent general meeting.

 

For 2023, Phuket aims to propel projects that offer fresh investment prospects and enhance its status as a key economic, trade, and tourism hub. However, Kongsak emphasised that succeeding in these goals requires addressing several global and local challenges.

 

The Chamber of Commerce leader highlighted multiple economic pressures, including global slowdowns, heightened interest rates, and rising logistic costs, necessitating strategic revisions. The ongoing US-China trade tensions have dampened the influx of Chinese tourists, a crucial demographic for Phuket's tourism sector. Initiatives tailored to rekindle Chinese tourism are amongst the chamber's priorities.

Moreover, Phuket faces intensifying competition from neighbouring tourist destinations like Vietnam, South Korea, Taiwan, and Indonesia. This rivalry necessitates improvements in both service quality and cost-efficiency to maintain Thailand’s competitive edge.

 

While Phuket is in the midst of transitioning towards a digital economy, it grapples with persisting infrastructural issues. Flooding, water shortages, waste management, traffic jams, and pollution continue to plague the island, presenting hurdles to sustainable development.

 

Labour quality and educational standards are additional concerns, as they struggle to match Phuket’s expanding economic demands. These factors, noted Kongsak, are crucial for fostering an effective workforce that can support the island’s rapid growth.

 

The chamber’s meeting reviewed the previous year’s achievements and challenges to formulate a sustainable growth strategy. Moving forward, Phuket must tackle these multifaceted issues to realise its ambitions of becoming a premier economic and tourism centre in Southeast Asia, reported Bangkok Post.

 

-- 2025-03-05