At 1pm, traffic police and rescue workers arrived in front of Baan Yeeteng where the tour bus had crashed into the back of a Ford Escape taxi. Two people were still inside the vehicle, the driver, Amnoy Wongrattanawut, 47, and his passenger Gayathri Raja Peter, 53.
Mr Amnoy suffered slight head wounds, while Ms Peter, who was in the back seat, had injuries to her neck, back and right leg.
Rescue workers gave both of the injured first aid before taking them to hospital.
It was reported that the taxi had picked up three Indian tourists from Turtle Village in Mai Khao and was heading towards town to go shopping.
Mr Amnoy told police that he was slowing down to let the car in front of him make a u-turn at Baan Yeeteng when the bus slammed into the back of his vehicle causing him to hit the veihcle in front.
The impact caused the rear windows to smash and also one headlight.
The bus driver, Lerdchow Kinthon, 36, told police that the brakes on the bus failed and this caused the collision.
The bus̕ windscreen shattered from the impact but the driver and three passengers on board escaped uninjured. The bus belonged to the Bumroongkit Tour Company.
The bus driver said that he was driving from Heroines Monument when he saw the traffic in front slowing down. He tried to step on the brake but they failed.
Lerdchow was taken to Phuket Provincial Police Station for questioning and it is possible he will be charged with reckless driving causing injury to others.
Mrs.Gayathri was taken to Phuket International Hospital and Mr Amnoy to Vachira Hospital.