Central Group, Thailand's biggest retail company, is beefing up investment in one of Asia's prime resort destinations, Phuket, with plans to develop two more retail projects next year.
The two new projects will require investment of 1-2 billion baht each and will start construction in 2019, according to group chief executive Tos Chirathivat.
Each project will be built on 40-50 rai under the new concept, eyeing mainly foreign tourists as customers.
"Business in Phuket has expanded continuously over the past several years and attracted many foreign investors," Mr Tos said. "The economy in this island will see a huge leap in growth to be on a par with Singapore in the future."
He said the government must support the service segment to respond to future demand in Phuket, a key tourist destination in Asean.
Central Group expanded its retail business to Phuket in 2004.
The group has invested a combined 30 billion baht to expand on the island, with one shopping complex, Central Festival; two Robinson Department Stores; and other business units such as B2S, Supersports, Tops Supermarket and Powerbuy, totalling over 400,000 square metres.
The company will officially open the Central Floresta complex, a luxury mall, in September this year.
Zen Department Store will also open in Phuket as the first branch outside Bangkok on the same day.
"Phuket is one of Central Group's strategic investments in the south of Thailand," Mr Tos said. "The group made a huge investment here because it foresees great potential. Phuket welcomed about 9 million tourists in 2017, with figures expected to increase by 10% this year. In addition, the company is interested in expanding the hotel business in Vietnam because the tourism business is booming there The Vietnamese government's vision of increasing visitor arrivals to 17-20 million by 2020 is bearing fruit."
The group through Centara Hotels & Resorts has already expanded into the hotel business in Vietnam via hotel management contracts.
Mr Tos said Centara Hotels & Resorts is in the process of seeking land to develop its own hotel in Vietnam in the foreseeable future.
He said the group is also interested in entering the duty-free segment, but it must first study the terms of reference for the duty-free shop concession.
Airports of Thailand Plc (AoT), the operator of six international airports, is scheduled to finalise concession bidding for duty-free within the next few months.
New operators are likely to sign contracts with AoT this year, two years before King Power's duty-free shop concession contract ends.