Phuket Tourism Report: Post-Covid Recovery and Future Outlook

The Foundation of Strong Rental Yields

Phuket has emerged as one of Asia’s strongest income-producing real estate markets

Phuket tourism engine is the backbone of its real estate rental performance. Since reopening, Phuket has returned to record tourist arrivals, surpassing pre-Covid numbers in several months.

Here is what investors need to know.

Phuket Tourism Recovery Highlights

1. Record Arrivals

International arrivals into Phuket are now one of the highest in Thailand, with strong demand from Russia, China, India, Europe, and the Middle East.

2. Year-Round Occupancy

High season occupancy reaches 80 to 95 percent in many areas.

Low season occupancy remains healthy due to:

• Digital nomads
• Long stay visitors
• International retirees
• Remote workers

3. Rising Daily Rates

Due to supply shortages and rising demand, villa and resort nightly rates have increased dramatically.

4. Airline Expansion

New direct flights from major cities continue to strengthen Phuket’s accessibility.

Future Projections Of Phuket Tourism

Tourism analysts and government forecasts expect:

• Continuous tourism growth
• Increasing long-stay visitor patterns
• Higher demand for quality accommodation
• Strengthening rental yields for investors

For real estate investors, this means high occupancy and reliable income for the foreseeable future.

Phuket Tourism Statistics – Last 3 Years (2023–2025)

2023

• Phuket tourism recovery accelerated strongly after borders reopened fully.
• Total international arrivals were approximately 6.5–7 million for the year.
• Market still rebuilding from COVID but reached about 70 percent of 2019 levels.
• Major source markets: Russia, China (returning slowly), India, Australia, Europe.

2024

• Phuket recorded approximately 8.65 million tourist arrivals in 2024.
• Growth was +23 percent year-on-year compared to 2023.
• This was only 5 percent below the 2019 all-time peak, showing full market recovery.
• Surge driven by strong demand from:
• Russia
• China (resumed at scale)
• India
• Middle East
• Europe
• Hotel occupancy rates continued rising, supported by strong seasonal peaks and improving year-round demand.

2025 (Latest Available Data)

January–July 2025

• Phuket welcomed over 7.6 million tourists in the first seven months of 2025.
• This indicates Phuket is tracking toward a record-breaking year.

H1 2025 (January–June)

• Phuket International Airport recorded 2,768,762 passenger arrivals in the first half of 2025.
• This represents +5.6 percent growth year-on-year compared with H1 2024.

Summary Insights

• Phuket has fully recovered from COVID and has now entered a new period of strong growth.
• Demand is driven by:
• Global remote workers
• Long-stay tourism
• High-net-worth relocation
• Surge in hotel-based investments
• Increasing arrival numbers correlate directly with:
• Higher hotel occupancy
• Higher short-term rental ROI
• Rising land values
• Strong secondary market activity