The sluggish Chinese market should have a short-term impact on Phuket as well as Thailand, as the island can attract other foreign arrivals and long-stay markets, according to Lan Kwai Fong Group, an operator of residential projects in the province.
Allan Zeman, chairman of Lan Kwai Fong Group, said the sluggish Chinese market is attributed to concerns about kidnapping and call centre scams in Myanmar, as well as the recent earthquake that rocked parts of Thailand.
However, these factors are temporary and the market will eventually recover, given the growth potential from China's massive population of 1.4 billion, said Mr Zeman.
He said the Chinese government already cooperated with Myanmar to bring Chinese workers back from compounds and arrested many people involved in scams earlier this year, which should help restore confidence.
Andara Resorts and Villas welcomed many Chinese guests during the recent Labour Day Golden Week, said Mr Zeman.
Phuket has increasingly become both a tourism and residential destination, he said.
More people are relocating to Phuket, which boasts an extensive international flight network and a large foreign community, including Russians who moved there to escape the Ukraine war, said Mr Zeman.
In fact, Phuket no longer has a low tourism season, as the company's resorts record strong occupancy rates year-round.
Many tourists from the Middle East frequently visit Phuket during their hot summer season, lifting the rental housing market targeting foreigners.
As Phuket continues to develop, he said the government should ensure public infrastructure keeps pace.
Lan Kwai Fong Group and and local partners launched a new residential project, Sudara, in Phuket. The first phase includes 220 units priced at 10-30 million baht, with space of 52-144 square metres, spanning a 9.3-rai plot.
Around 50 units were already sold, mostly to foreign buyers, such as expatriates from Hong Kong and Singapore.
Jason Thelen, senior director of sales and marketing at Sudara Residences Phuket, said the project is focusing on premium customers.
Rooms are larger than usual in Phuket, with a one bedroom 52 sq m compared with the average of 29 sq m.
Mr Thelen said the project may not target Chinese buyers as most of them look for smaller rooms of 25 sq m, or less than 10 million baht per unit.
Mr Zeman said the group is studying the second phase, which might be a hotel located next to the first phase.
In the future, he also wants to use the brands Andara and Sudara to seek management contracts with local owners, such as in Bangkok.
The group is also investing in real estate development in China, in Chengdu, Xi'an and Hainan.
LESSONS FROM MACAU
As the Thai government prepares to legalise casino gambling, Mr Zeman, who is also non-executive chairman of Wynn Macau, said entertainment complexes or integrated resorts with casinos have been operated in many destinations, including Macau, with 88% of the special administrative region's revenue attributed to this industry.
In the past, Macau was not considered a desirable place to live, but after granting concessions to operators to initiate integrated resorts, Macau has become a thriving city and is now able to aim for more revenue from sources other than casinos.
He said Macau aims to increase non-gaming revenue to 60% and reduce the gaming industry's contribution to 40%.
Wynn Resorts, the parent company of Wynn Macau, is also developing a casino resort in Dubai, slated for 2027.
