Retail and property developer Central Pattana Plc (CPN), the operator of Central malls, plans to nearly double the luxury store space at Central Phuket by year-end as the island is becoming a luxury tourism destination.
Nattakit Tangpoonsinthana, chief marketing officer for CPN, said Thailand is starting to focus on quality tourism more than quantity, and Phuket is a key destination for this shift.
Phuket has infrastructure to accommodate tourists and expats from around the world, including international schools, yacht marinas and golf courses, he said.
Moreover, Phuket airport is the third-largest in the country in terms of flight volume. In fiscal 2023, the number of international aircraft movements at Phuket airport tallied more than 82,000, according to Airports of Thailand Plc (AOT).
AOT plans to build a new terminal for international flights at Phuket airport to expand its passenger handing capacity from 12.5 million a year to 18 million. Construction is scheduled to begin in 2026 and take three years to complete.
Mr Nattakit said the company recognises Phuket's potential as a tourist destination, leading it to open Central Phuket Floresta in 2018, catering to the luxury lifestyle, which aligns with the government's strategic plan.
Wilaiporn Pitimanaaree, senior vice-president of Central Phuket, said that last year Phuket generated more than 380 billion baht in tourism revenue, with the goal this year set at 450 billion baht.
She said the database for the group's loyalty programme indicates that Central Phuket customers have the highest spending per person among all CPN malls nationwide, with wealth segment customers spending up to 45% more than other branches.
This reflects the growth of Thailand's luxury product market, valued at 1.6 trillion baht. The market is projected to expand by 5.62% by 2028, surpassing Singapore, said Ms Wilaiporn.
She said the company plans to expand its luxury zone from 2,000 square metres to 8,000 sq m by 2026.
As the luxury area is increasing, several brands are preparing to expand their store spaces, nearly doubling in size by the end of 2024.
Central Phuket hosts 14 leading luxury brands, the largest collection outside Bangkok. Following the completion of the luxury zone expansion in 2026, the company aims to house up to 30 luxury brands.
"Central Phuket averages 50,000 people per day, an increase of approximately 30% more traffic than before the Covid-19 pandemic," Ms Wilaiporn said.
The customers are mostly foreign tourists from Russia, the Middle East, China, Europe and the US, she said.
As the country's tourism business recovers in conjunction with the growth of luxury zones, the company expects Central Phuket to expand with an average user growth rate of 20% per year and an average daily traffic of 60,000 customers by the end of 2024, Ms Wilaiporn said.