Phuket tourism trade jittery over instability

*Tourism operators in Phuket view political instabilty as a threat to Thailand's tourism competitiveness. Political instability and persistent border issues continue to impact investor sentiment, making Thailand lose its…*

Published: 2026-03-14 18:57 UTC Event date: developing

Phuket’s tourism industry is expressing growing concern over Thailand’s ongoing political instability and its potential impact on the island’s crucial high season, industry leaders reported recently. Local tourism operators warn that the uncertainty is undermining investor confidence and causing delays in key infrastructure projects and tourism stimulus measures, which are vital for maintaining the island’s competitive edge.

Bill Barnett, managing director of Phuket-based hospitality consultancy C9 Hotelworks, said the lack of political continuity is creating challenges for the tourism sector across the country. “Political uncertainty has led to discontinuity in national policies, including those directly affecting tourism stimulus and infrastructure development funding,” Barnett explained. He pointed to persistent border issues and policy delays as factors that are making investors wary of committing to new projects in Thailand.

The situation is particularly concerning for Phuket, where tourism is a primary economic driver for both residents and local businesses. Barnett noted that, while Phuket is expected to maintain its tourism market during the upcoming fourth-quarter high season, the outlook is less optimistic than last year. Industry projections suggest a 5% decrease in tourist arrivals compared to the same period in 2023, with the average daily room rate potentially falling by more than 10% year-on-year. Such declines would affect hotel operators, tour providers, and service staff throughout the island.

In contrast to Thailand’s current situation, Barnett highlighted Vietnam’s stable policy environment and ambitious infrastructure plans, such as the proposed high-speed railway linking Hanoi and Ho Chi Minh City, as examples of how regional competitors are moving ahead. He suggested that Thailand’s delays in similar infrastructure and tourism initiatives could further erode its appeal to both investors and international travelers.

For Phuket’s residents and business owners, the implications are immediate and tangible. A dip in tourist numbers and spending during high season can translate into reduced income opportunities, fewer jobs, and decreased demand for local goods and services. Many businesses, particularly those reliant on international visitors, are already preparing for a more subdued season.

As Thailand’s political situation remains fluid, tourism stakeholders in Phuket are calling for swift action to restore investor confidence and accelerate critical infrastructure projects. Industry observers will be closely watching government policy announcements and the upcoming high season’s performance as indicators of whether stability and investment can return to support the island’s vital tourism sector.

Source: https://www.bangkokpost.com/business/general/3097073/phuket-tourism-trade-jittery-over-instability