Phuket Gazette

PHUKET: A survey by a popular UK-based website recently ranked Bangkok as 31st among 32 major cities around the world in terms of cost of living. (See Phuket Gazette report here.)

The survey, and our report of it, set off a great deal of lively, if not always learned, debate among armchair economists in the Gazette readers’ forum.

A common complaint among expats on fixed incomes is that Phuket is becoming an increasingly expensive place to live. This is, of course, the result of the sustained rise in the value of the baht against most Western currencies.

Inflation also looks likely to continue as a threat, though it may not have been recognized as such in last week's passage by Cabinet of a minimum-wage rise, from 204 baht to 221 baht per day, for workers in Phuket.

Although the most generous increase awarded to labor in any province in the Thailand, Phuket's 8.3% will be seen by some as modest and insufficient for the island's poorest workers. Indeed, many find it egregious in the context of the whopping 14.8% increase accorded the nation's lawmakers – almost all of whom are multi-millionaires (in baht, at least).

Whatever the perception, pay rises on the scale we saw last week are inflationary, with most Phuket residents – Thais and foreigners alike – having little or no control over what will transpire from here.

Predictions that the rising baht would have a strong negative effect on tourism this high season may soon be well borne out, notwithstanding the ever-encouraging government proclamations with regard to rising tourist numbers.

Shop owners, restaurateurs and hoteliers are telling the Gazette that the collective 'spend' of Phuket's tourists is palpably in decline.

The recurring observation is that the demographics of Thai tourism have changed in a bellwether way, with the baht-fearing Europeans staying home, their chairs and beds in Thailand now filled by a more frugal Asian counterpart.

Many in the industry worry that the rise of the baht is likely to be part of a long-term trend that will eventually see the Thai currency restored to its pre-1997 level of about 25 to US$1. If that were to happen, it could have an immensely adverse impact on tourism, they say.

But perhaps it is still too early to speak of catostrophe. The most important issue now is just how pricey Phuket really is when compared with rival destinations. Meanwhile, the island still represents good value for money for most visitors, and it is up to us to curb greed if we want to keep it that way.
– Phuket Gazette

1

It is not up to us to curb greed. It's up to the Thais who live and work here. They need to curb corruption as well because it's one of the biggest factors driving inflation in Phuket.

Posted by j d December 19, 2010 02:46:02PM

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2

It seems you've got the point. European and American tourists have approximately 20% less money in their pockets, due to the strong baht. To this you have to add the usual annual inflation rate here. Unlike Thais believe, farang have no money printers in their pockets. At the end of this high season they will have learned it in a painful manner. Phuket is no longer competitive. The end of the flagpole is reached.

Posted by Michael December 19, 2010 03:59:11PM

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3

Much of the expensiveness of Phuket has to do with rent as a opposed to wage increases. I would say that for a small shop with less than 5 employees, more would be paid on rent than on the wages of the workers. Especially if the workers are paid the minimum wage! "Economy" class people are doing more research before they come, or getting more experienced, and are being more frugal than they were before. The various scams have made this a requirement when visiting Thailand.

Posted by Ty December 19, 2010 05:10:39PM

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4

It is not up to us to curb greed. It's up to the Thais who live and work here. They need to curb corruption as well because it's one of the biggest factors driving inflation in Phuket.

Posted by j d

jd, when the gazette wrote "...and it is up to us to curb greed....", I'm sure they were thinking of farang as well. After all, it's only the foreign owned and managed hotels that are charging their guests 15-20,000 baht each for a New Year's or Christmas Eve "gala" dinner, wether they attend it or not. Greed in Phuket knows no cultural or racial borders.

Posted by Ed Rogers December 19, 2010 06:01:28PM

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5

Can someone explain what the new monthly salary is to me? If the daily rate is 221 baht, how many days per week and hours per day are typical for this salary?

Posted by jpp December 19, 2010 09:10:39PM

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6

Hotels are among the worst for hiking prices in Phuket. I have been visiting Phuket for the past 3 years, staying 3 months in UK followed by 3 months in Thailand. I cannot get my head around why they keep changing the room rates. The hotel where I stay will charge me anything from 800 to 2,500 baht for the same room. They always have vacancies, even at so-called high season. I have just returned to the UK as I see no reason for these inflated prices which will be cut in half in February.

Posted by Alan December 19, 2010 10:33:32PM

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7

As someone who has decided to retire to Thailand in 4 years, I have made it a priority to visit different parts of Thailand. Phuket is definitely the nicest area, but Koh Samui is also very nice. When visiting there I was not harrassed by tailors or tuk-tuk drivers. It was definitely less expensive than Phuket.

With the rise of the baht, Koh Samui seems to be the winner for someone who is retiring on a fixed income.

Posted by Vegas December 19, 2010 11:21:31PM

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8

It seems you've got the point. European and American tourists have approximately 20% less money in their pockets, due to the strong baht. To this you have to add the usual annual inflation rate here. Unlike Thais believe, farang have no money printers in their pockets. At the end of this high season they will have learned it in a painful manner. Phuket is no longer competitive. The end of the flagpole is reached.

Posted by Michael

Totally agree with you. The 'flagpole has been reached.'

Posted by brian December 19, 2010 11:28:50PM

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9

Hotels are among the worst for hiking prices in Phuket. I have been visiting Phuket for the past 3 years, staying 3 months in UK followed by 3 months in Thailand. I cannot get my head around why they keep changing the room rates. The hotel where I stay will charge me anything from 800 to 2,500 baht for the same room. They always have vacancies, even at so-called high season. I have just returned to the UK as I see no reason for these inflated prices which will be cut in half in February.

Posted by Alan

They keep raising the rates because they can. And every resort destination in he world prices things on a seasonal basis – basic for low season, higher for high.

Posted by Big Heinz December 20, 2010 08:08:32AM

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10

As someone who has decided to retire to Thailand in 4 years, I have made it a priority to visit different parts of Thailand. Phuket is definitely the nicest area, but Koh Samui is also very nice. When visiting there I was not harrassed by tailors or tuk-tuk drivers. It was definitely less expensive than Phuket.

With the rise of the baht, Koh Samui seems to be the winner for someone who is retiring on a fixed income.

Posted by Vegas

Samui and Phuket both use the baht, so both suffer/gain equally with the rise and fall of it.

Posted by Nandoor December 20, 2010 08:11:02AM

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11

Hotels are among the worst for hiking prices in Phuket. I have been visiting Phuket for the past 3 years, staying 3 months in UK followed by 3 months in Thailand. I cannot get my head around why they keep changing the room rates. The hotel where I stay will charge me anything from 800 to 2,500 baht for the same room. They always have vacancies, even at so-called high season. I have just returned to the UK as I see no reason for these inflated prices which will be cut in half in February.

Posted by Alan

I totally agree with you.. and I don't blame you for going back to the UK until the high season passes. Saying that, all the best with the snow - never mind it's x'mas.

Posted by brian December 20, 2010 08:30:23AM

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12

There are many small hotels that are an excellent value in Patong. The rates they charge are very reasonable especially since they have only 4 months to make their entire year.

Even at peak season their is no greed IMHO. Disagree? Check the rates in Singapore, Kuala Lumper, Medellin, Cartegena, Cancun, the Bahamas, Havana and other major cities.

On the flip side Phuket is already seeing a severe slow down. This is peak season and there are many and all types businesses for sale.

Posted by Solo December 20, 2010 09:45:40AM

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13

There are many small hotels that are an excellent value in Patong. The rates they charge are very reasonable especially since they have only 4 months to make their entire year.

Even at peak season their is no greed IMHO. Disagree? Check the rates in Singapore, Kuala Lumper, Medellin, Cartegena, Cancun, the Bahamas, Havana and other major cities.

On the flip side Phuket is already seeing a severe slow down. This is peak season and there are many and all types businesses for sale.

Posted by Solo

Comparing Patong to major capital cities is unrealistic as is comparing prices in Patong to prices in the Bahamas and elsewhere.

Posted by aimlessly wandering December 20, 2010 11:42:49AM

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14

Anyone remember what happened in Spain with the tourism industry when the business owners there (from small to big) became too greedy?

Tourists discovered Spain was not that cheap anymore and the general flow of tourism went off to North Africa and Turkey never to return!

Many more examples to give and these are without the financial/economic crisis going through the world.

Aggressive adjustment is strongly needed before losses stay permanent!.....

Posted by Rob December 20, 2010 01:04:40PM

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15

I was just over in Phuket (Patong) and I found most things pretty good value for money. Like most places there are expensive hotels, restaurants, bars etc and affordable ones.

You want to talk about inflation and cost of living? Come to Melbourne, rentals have gone through the roof along with every day necessities.I'll take Phuket any day!

Oh and it does not surprise me the high season is not very busy, why?
Europe= sovereign debt issues, America= Stalling economy, no has money to spend!

Posted by A-man December 20, 2010 01:19:32PM

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16

What is killing Phuket is greed, never have I seen anything like it in the world. That coupled with corruption, over development with so many of the same types of business making for a smaller piece of the pie and yes the very strong baht.

Remembering that 5-6 years ago the baht was 42 to the USD and now what 28. That is a huge difference and a deal breaker for many. The Euro is in the same boat.

Posted by Steve December 20, 2010 02:01:31PM

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0    0

17

There are many small hotels that are an excellent value in Patong. The rates they charge are very reasonable especially since they have only 4 months to make their entire year.

Even at peak season their is no greed IMHO. Disagree? Check the rates in Singapore, Kuala Lumper, Medellin, Cartegena, Cancun, the Bahamas, Havana and other major cities.

On the flip side Phuket is already seeing a severe slow down. This is peak season and there are many and all types businesses for sale.

Posted by Solo

Comparing Patong to major capital cities is unrealistic as is comparing prices in Patong to prices in the Bahamas and elsewhere.

Posted by aimlessly wandering

Ok, you make the comparison of the #1 tourist destination in SE Asia (Phuket) to other places with fabulous beaches, great winter weather, modern shopping and adult entertainment combined with practically no petty crime (unlike Rio), and all for $50 per night in PEAK season. I agree in principle but IMHO complaints mainly come from cheap tourists who think a developing country should be dirt cheap and it's their chance to pay peanuts for high value.

Posted by Solo December 21, 2010 09:38:28AM

Reply

0    0

18

There are many small hotels that are an excellent value in Patong. The rates they charge are very reasonable especially since they have only 4 months to make their entire year.

Even at peak season their is no greed IMHO. Disagree? Check the rates in Singapore, Kuala Lumper, Medellin, Cartegena, Cancun, the Bahamas, Havana and other major cities.

On the flip side Phuket is already seeing a severe slow down. This is peak season and there are many and all types businesses for sale.

Posted by Solo

Comparing Patong to major capital cities is unrealistic as is comparing prices in Patong to prices in the Bahamas and elsewhere.

Posted by aimlessly wandering

Ok, you make the comparison of the #1 tourist destination in SE Asia (Phuket) to other places with fabulous beaches, great winter weather, modern shopping and adult entertainment combined with practically no petty crime (unlike Rio), and all for $50 per night in PEAK season. I agree in principle but IMHO complaints mainly come from cheap tourists who think a developing country should be dirt cheap and it's their chance to pay peanuts for high value.

Posted by Solo

Solo do you read the Gazette? No crime in Phuket? We read of weekly murders, corruption and let's not forget the tuk-tuk drivers we haven't mentioned them for some time. We all love Thailand but the authorities need to work on cleaning up the criminal gangs.

I hope it's a great high season for Thailand and I wish all readers a happy X'mas as I am freezing in the UK.

Posted by Alan December 21, 2010 02:40:57PM

Reply

0    0

19

There are many small hotels that are an excellent value in Patong. The rates they charge are very reasonable especially since they have only 4 months to make their entire year.

Even at peak season their is no greed IMHO. Disagree? Check the rates in Singapore, Kuala Lumper, Medellin, Cartegena, Cancun, the Bahamas, Havana and other major cities.

On the flip side Phuket is already seeing a severe slow down. This is peak season and there are many and all types businesses for sale.

Posted by Solo

Comparing Patong to major capital cities is unrealistic as is comparing prices in Patong to prices in the Bahamas and elsewhere.

Posted by aimlessly wandering

Ok, you make the comparison of the #1 tourist destination in SE Asia (Phuket) to other places with fabulous beaches, great winter weather, modern shopping and adult entertainment combined with practically no petty crime (unlike Rio), and all for $50 per night in PEAK season. I agree in principle but IMHO complaints mainly come from cheap tourists who think a developing country should be dirt cheap and it's their chance to pay peanuts for high value.

Posted by Solo

Solo do you read the Gazette? No crime in Phuket? We read of weekly murders, corruption and let's not forget the tuk-tuk drivers we haven't mentioned them for some time. We all love Thailand but the authorities need to work on cleaning up the criminal gangs.

I hope it's a great high season for Thailand and I wish all readers a happy X'mas as I am freezing in the UK.

Posted by Alan

My statement was "practically no petty crime" as compared to your un-named better valued vacation spots that cost less to visit with the same or better value and amenities than Phuket with fewer crimes against tourists.

Oh and yes I read the Gazette everyday. I also lived and owned a business in Patong for 5 years. I am very familiar with the Boys in Brown, Tuk-tuks and gangs. However I walked everywhere carrying money from my business while wearing gold jewelry and was never accosted.

Posted by Solo December 21, 2010 09:32:35PM

Reply

0    0

19

There are many small hotels that are an excellent value in Patong. The rates they charge are very reasonable especially since they have only 4 months to make their entire year.

Even at peak season their is no greed IMHO. Disagree? Check the rates in Singapore, Kuala Lumper, Medellin, Cartegena, Cancun, the Bahamas, Havana and other major cities.

On the flip side Phuket is already seeing a severe slow down. This is peak season and there are many and all types businesses for sale.

Posted by Solo

Comparing Patong to major capital cities is unrealistic as is comparing prices in Patong to prices in the Bahamas and elsewhere.

Posted by aimlessly wandering

Ok, you make the comparison of the #1 tourist destination in SE Asia (Phuket) to other places with fabulous beaches, great winter weather, modern shopping and adult entertainment combined with practically no petty crime (unlike Rio), and all for $50 per night in PEAK season. I agree in principle but IMHO complaints mainly come from cheap tourists who think a developing country should be dirt cheap and it's their chance to pay peanuts for high value.

Posted by Solo

Solo do you read the Gazette? No crime in Phuket? We read of weekly murders, corruption and let's not forget the tuk-tuk drivers we haven't mentioned them for some time. We all love Thailand but the authorities need to work on cleaning up the criminal gangs.

I hope it's a great high season for Thailand and I wish all readers a happy X'mas as I am freezing in the UK.

Posted by Alan

My statement was "practically no petty crime" as compared to your un-named better valued vacation spots that cost less to visit with the same or better value and amenities than Phuket with fewer crimes against tourists.

Oh and yes I read the Gazette everyday. I also lived and owned a business in Patong for 5 years. I am very familiar with the Boys in Brown, Tuk-tuks and gangs. However I walked everywhere carrying money from my business while wearing gold jewelry and was never accosted.

Posted by Solo December 21, 2010 09:32:35PM

Reply

0    0

18

There are many small hotels that are an excellent value in Patong. The rates they charge are very reasonable especially since they have only 4 months to make their entire year.

Even at peak season their is no greed IMHO. Disagree? Check the rates in Singapore, Kuala Lumper, Medellin, Cartegena, Cancun, the Bahamas, Havana and other major cities.

On the flip side Phuket is already seeing a severe slow down. This is peak season and there are many and all types businesses for sale.

Posted by Solo

Comparing Patong to major capital cities is unrealistic as is comparing prices in Patong to prices in the Bahamas and elsewhere.

Posted by aimlessly wandering

Ok, you make the comparison of the #1 tourist destination in SE Asia (Phuket) to other places with fabulous beaches, great winter weather, modern shopping and adult entertainment combined with practically no petty crime (unlike Rio), and all for $50 per night in PEAK season. I agree in principle but IMHO complaints mainly come from cheap tourists who think a developing country should be dirt cheap and it's their chance to pay peanuts for high value.

Posted by Solo

Solo do you read the Gazette? No crime in Phuket? We read of weekly murders, corruption and let's not forget the tuk-tuk drivers we haven't mentioned them for some time. We all love Thailand but the authorities need to work on cleaning up the criminal gangs.

I hope it's a great high season for Thailand and I wish all readers a happy X'mas as I am freezing in the UK.

Posted by Alan December 21, 2010 02:40:57PM

Reply

0    0

17

There are many small hotels that are an excellent value in Patong. The rates they charge are very reasonable especially since they have only 4 months to make their entire year.

Even at peak season their is no greed IMHO. Disagree? Check the rates in Singapore, Kuala Lumper, Medellin, Cartegena, Cancun, the Bahamas, Havana and other major cities.

On the flip side Phuket is already seeing a severe slow down. This is peak season and there are many and all types businesses for sale.

Posted by Solo

Comparing Patong to major capital cities is unrealistic as is comparing prices in Patong to prices in the Bahamas and elsewhere.

Posted by aimlessly wandering

Ok, you make the comparison of the #1 tourist destination in SE Asia (Phuket) to other places with fabulous beaches, great winter weather, modern shopping and adult entertainment combined with practically no petty crime (unlike Rio), and all for $50 per night in PEAK season. I agree in principle but IMHO complaints mainly come from cheap tourists who think a developing country should be dirt cheap and it's their chance to pay peanuts for high value.

Posted by Solo December 21, 2010 09:38:28AM

Reply

0    0

16

What is killing Phuket is greed, never have I seen anything like it in the world. That coupled with corruption, over development with so many of the same types of business making for a smaller piece of the pie and yes the very strong baht.

Remembering that 5-6 years ago the baht was 42 to the USD and now what 28. That is a huge difference and a deal breaker for many. The Euro is in the same boat.

Posted by Steve December 20, 2010 02:01:31PM

Reply

0    0

15

I was just over in Phuket (Patong) and I found most things pretty good value for money. Like most places there are expensive hotels, restaurants, bars etc and affordable ones.

You want to talk about inflation and cost of living? Come to Melbourne, rentals have gone through the roof along with every day necessities.I'll take Phuket any day!

Oh and it does not surprise me the high season is not very busy, why?
Europe= sovereign debt issues, America= Stalling economy, no has money to spend!

Posted by A-man December 20, 2010 01:19:32PM

Reply

0    0

14

Anyone remember what happened in Spain with the tourism industry when the business owners there (from small to big) became too greedy?

Tourists discovered Spain was not that cheap anymore and the general flow of tourism went off to North Africa and Turkey never to return!

Many more examples to give and these are without the financial/economic crisis going through the world.

Aggressive adjustment is strongly needed before losses stay permanent!.....

Posted by Rob December 20, 2010 01:04:40PM

Reply

0    0

13

There are many small hotels that are an excellent value in Patong. The rates they charge are very reasonable especially since they have only 4 months to make their entire year.

Even at peak season their is no greed IMHO. Disagree? Check the rates in Singapore, Kuala Lumper, Medellin, Cartegena, Cancun, the Bahamas, Havana and other major cities.

On the flip side Phuket is already seeing a severe slow down. This is peak season and there are many and all types businesses for sale.

Posted by Solo

Comparing Patong to major capital cities is unrealistic as is comparing prices in Patong to prices in the Bahamas and elsewhere.

Posted by aimlessly wandering December 20, 2010 11:42:49AM

Reply

0    0

12

There are many small hotels that are an excellent value in Patong. The rates they charge are very reasonable especially since they have only 4 months to make their entire year.

Even at peak season their is no greed IMHO. Disagree? Check the rates in Singapore, Kuala Lumper, Medellin, Cartegena, Cancun, the Bahamas, Havana and other major cities.

On the flip side Phuket is already seeing a severe slow down. This is peak season and there are many and all types businesses for sale.

Posted by Solo December 20, 2010 09:45:40AM

Reply

0    0

11

Hotels are among the worst for hiking prices in Phuket. I have been visiting Phuket for the past 3 years, staying 3 months in UK followed by 3 months in Thailand. I cannot get my head around why they keep changing the room rates. The hotel where I stay will charge me anything from 800 to 2,500 baht for the same room. They always have vacancies, even at so-called high season. I have just returned to the UK as I see no reason for these inflated prices which will be cut in half in February.

Posted by Alan

I totally agree with you.. and I don't blame you for going back to the UK until the high season passes. Saying that, all the best with the snow - never mind it's x'mas.

Posted by brian December 20, 2010 08:30:23AM

Reply

0    0

10

As someone who has decided to retire to Thailand in 4 years, I have made it a priority to visit different parts of Thailand. Phuket is definitely the nicest area, but Koh Samui is also very nice. When visiting there I was not harrassed by tailors or tuk-tuk drivers. It was definitely less expensive than Phuket.

With the rise of the baht, Koh Samui seems to be the winner for someone who is retiring on a fixed income.

Posted by Vegas

Samui and Phuket both use the baht, so both suffer/gain equally with the rise and fall of it.

Posted by Nandoor December 20, 2010 08:11:02AM

Reply

0    0

9

Hotels are among the worst for hiking prices in Phuket. I have been visiting Phuket for the past 3 years, staying 3 months in UK followed by 3 months in Thailand. I cannot get my head around why they keep changing the room rates. The hotel where I stay will charge me anything from 800 to 2,500 baht for the same room. They always have vacancies, even at so-called high season. I have just returned to the UK as I see no reason for these inflated prices which will be cut in half in February.

Posted by Alan

They keep raising the rates because they can. And every resort destination in he world prices things on a seasonal basis – basic for low season, higher for high.

Posted by Big Heinz December 20, 2010 08:08:32AM

Reply

0    0

8

It seems you've got the point. European and American tourists have approximately 20% less money in their pockets, due to the strong baht. To this you have to add the usual annual inflation rate here. Unlike Thais believe, farang have no money printers in their pockets. At the end of this high season they will have learned it in a painful manner. Phuket is no longer competitive. The end of the flagpole is reached.

Posted by Michael

Totally agree with you. The 'flagpole has been reached.'

Posted by brian December 19, 2010 11:28:50PM

Reply

0    0

7

As someone who has decided to retire to Thailand in 4 years, I have made it a priority to visit different parts of Thailand. Phuket is definitely the nicest area, but Koh Samui is also very nice. When visiting there I was not harrassed by tailors or tuk-tuk drivers. It was definitely less expensive than Phuket.

With the rise of the baht, Koh Samui seems to be the winner for someone who is retiring on a fixed income.

Posted by Vegas December 19, 2010 11:21:31PM

Reply

0    0

6

Hotels are among the worst for hiking prices in Phuket. I have been visiting Phuket for the past 3 years, staying 3 months in UK followed by 3 months in Thailand. I cannot get my head around why they keep changing the room rates. The hotel where I stay will charge me anything from 800 to 2,500 baht for the same room. They always have vacancies, even at so-called high season. I have just returned to the UK as I see no reason for these inflated prices which will be cut in half in February.

Posted by Alan December 19, 2010 10:33:32PM

Reply

0    0

5

Can someone explain what the new monthly salary is to me? If the daily rate is 221 baht, how many days per week and hours per day are typical for this salary?

Posted by jpp December 19, 2010 09:10:39PM

Reply

0    0

4

It is not up to us to curb greed. It's up to the Thais who live and work here. They need to curb corruption as well because it's one of the biggest factors driving inflation in Phuket.

Posted by j d

jd, when the gazette wrote "...and it is up to us to curb greed....", I'm sure they were thinking of farang as well. After all, it's only the foreign owned and managed hotels that are charging their guests 15-20,000 baht each for a New Year's or Christmas Eve "gala" dinner, wether they attend it or not. Greed in Phuket knows no cultural or racial borders.

Posted by Ed Rogers December 19, 2010 06:01:28PM

Reply

0    0

3

Much of the expensiveness of Phuket has to do with rent as a opposed to wage increases. I would say that for a small shop with less than 5 employees, more would be paid on rent than on the wages of the workers. Especially if the workers are paid the minimum wage! "Economy" class people are doing more research before they come, or getting more experienced, and are being more frugal than they were before. The various scams have made this a requirement when visiting Thailand.

Posted by Ty December 19, 2010 05:10:39PM

Reply

0    0

2

It seems you've got the point. European and American tourists have approximately 20% less money in their pockets, due to the strong baht. To this you have to add the usual annual inflation rate here. Unlike Thais believe, farang have no money printers in their pockets. At the end of this high season they will have learned it in a painful manner. Phuket is no longer competitive. The end of the flagpole is reached.

Posted by Michael December 19, 2010 03:59:11PM

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0    0

1

It is not up to us to curb greed. It's up to the Thais who live and work here. They need to curb corruption as well because it's one of the biggest factors driving inflation in Phuket.

Posted by j d December 19, 2010 02:46:02PM

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0    0

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