Thailand: Puket targets the super rich
Rich aspirations
by Alasdair Forbes
With a range of new facilities and services aimed at the (very) wealthy, Phuket is increasingly seeking to define itself in terms of luxury. It has long been argued that Phuket doesn’t need more tourists, but richer tourists instead. Very much richer - ultra-rich, in fact. One compelling part of this argument is that one truly high-end tourist spends as much as a bus load of 50 package tourists from, say, mainland China, yet puts just one fiftieth of the strain on the infrastructure. And the rich visitor’s money is spent in Phuket, not paid to tour companies in China. The Tourism Authority of Thailand has, in the past, voiced its willingness to attract “high end” tourists, but Phuket has been hit by so many global events that deter tourism, that simply filling all the hotel rooms – at any price – has been the main aim of the TAT and other tourism organisations. 9/11 and the subsequent wars in Iraq and Afghanistan, SARS, bird flu, the Asian tsunami and, this year, swine fever and political turmoil in Bangkok have all put people off flying to Thailand or even flying at all. The global economic downturn has resulted in well off people being less well off, and rich people wanting to be less conspicuous about their spending. A quick check on Google Trends for the search term luxury+phuket shows a distinctly falling trend. So it has been left to the private sector to try to provide the sophisticated pleasures and facilities the super-rich expect when they go on holiday. This has been done with varying levels of success. The very high end of the property market has been surprisingly resilient, considering that some homes cost US$6 million or more. This has also given rise to a sizeable market in luxury villas for holiday rentals, something Phuket simply didn’t have five years ago. Supplies of those little luxuries – a good bottle of wine or a Cohiba cigar – are now easy to find, and there are companies that will deliver goodies to the door at any time of day or night. A second marina for superyachts has opened in Ao Po – the first, Yacht Haven, is close to overflowing – and is rapidly filling up. The management of Phuket International Airport is mulling over a plan to build a terminal for private jets; five years ago, the number of Lear jets and Gulfstreams landing at Phuket in a year could be counted on the fingers of one hand. These days they are a daily occurrence. Snazzy restaurants serving up excellent food, be it Thai, French, Italian, Szechuan, Russian, Swedish or Middle Eastern, are easy to find. European-style nightlife is well catered for, with a dozen or so chic party venues having opened in recent years – the catch being that entertainment hours are still severely restricted, with clubs forced to close at just about the time that many Europeans expect to start partying. On the transport side, there is still a lack of luxury cars for rent – a mid-level Mercedes Benz is about as good as it gets – and there is only one car dealership, Life Style Auto, that sells high-end imports (with Thailand’s 100 percent import duty doubling the price, imported cars are definitely a luxury). The Ferrari dealer in Bangkok did consider opening a showroom in Phuket but in the end decided the time was not right, and if you want a Rolls Royce, a Lamborghini or a Porsche you’re going to have to journey to the capital. After serious lobbying a few years ago, the Thai government saw the light and dropped pretty much all taxes on imported boats, resulting in an instant boom in the marine tourism industry. It is now possible to buy a high-speed Italian-, US- or Australian-built gin palace or rent one with crew, including bar staff and gourmet food, from companies such as Laguna Tours, Tawan Cruises, Limestone Cruises or the recently established Chris Craft operation. In the air, there are now two companies, Helithai and Advance Aviation, with a total of three choppers dedicated to charter flights, and Bangkok Hospital’s emergency helicopter is also available for joyrides when its not being used to ferry the sick. For those who have their own light aircraft, a strip is under construction near the east coast of the island. There are plots for sale for those who want to build homes with hangars next to the strip. Despite the occasionally patchy record and a lack of concrete administrative action, overall the private sector has achieved a great deal at the luxury end of Phuket’s tourism market – in the process helping to fuel an increasingly high end property market.