The Driving Forces of the Economy of Phuket

Phuket is Thailand's third largest island, approximately the size of Singapore. It is located off the mainland's west coast in the Andaman Sea. A bridge connecting to the mainland makes travelling easier to and from the mainland easier. Furthermore, in terms of economy, it has the second highest per capita income of any province in Thailand save that of Bangkok.

In the past, Phuket was one of the major trading routes between India and China. In fact, it was frequently mentioned in ship logs of French, Dutch, Portuguese, and English traders.

In addition to its strategic position as a trading stopover, Phuket also served as a major seller of tin. Indeed, its economy was based on tin mining for much of its history. But when the demand and prices of tin fell in the 1980s, the industry fell apart, necessitating a shift in business. The manufacturing of rubber replaced the defunct tin mining industry by the beginning of the 20th century. In fact, huge areas of the island's rainforests were cut down to make way for rubber plantations.

Today, the biggest contributor to the island's economy is tourism. Thanks to its magnificent beaches and beautiful mountain resorts, Phuket draws more than three million visitors a year, both local and foreign. Buildings, attractions, and coastlines that were destroyed during the 2004 tsunami are now fully restored. Presently, Phuket is undergoing an intensive phase of recreational urbanisation by constructing new hotels, resorts, apartments, parks, and attractions.

All Phuket's efforts paid off. In 2005, Fortune Magazine voted the place as one of the world's top 5 retirement destinations. As a result, it became the island of choice for thousands of expatriates from all over the world.