Nattakit Tangpoonsinthana, chief marketing officer at CPN, said the investment is intended as part of the transformation of Phuket into one of the world’s premier luxury destinations, alongside Hawaii, Monaco, Santorini and Miami, reports the Bangkok Post.
“Phuket is among the top destinations for global jet-setters, sharing key attributes with other premier locations: stunning beaches, world-class tourism infrastructure, luxury accommodations, high-end lifestyle activities, and luxury shopping experiences,” he said.
Mr Nattakit said the additional 20,000sqm of space, for a total of 200,000sqm, will accommodate nine more luxury and bridge line brands, increasing the tally from 16 to 25.
“This will be the only luxury mall outside Bangkok to have such a comprehensive collection of luxury brands,” he said.
“The expansion supports the growth of Thailand’s luxury market, valued at more than US$5bn and projected to grow by 6.15% annually until 2028, outpacing markets such as Singapore.”
Driven primarily by fashion and social media influencers, the Thai luxury market continues to thrive despite the global economic slowdown, according to CPN.
Phuket’s economy and tourism sector continue to thrive, with tourism revenue projected to reach nearly B500bn this year, up 28% from B388bn in 2023, driven by a 16% uptick in tourist arrivals.
Known for its year-round high season, Phuket boasts the highest spending per tourist in Thailand, averaging B34,336 per visitor, reported the Bangkok Post.
The island also has the highest gross provincial product (GPP) per person in southern Thailand and ranks 12th nationwide.
Phuket’s GPP growth for 2024 is projected to approach 20%, significantly outpacing the national average.
The island’s luxury market has significant growth potential, fuelled by new infrastructure developments, including the expansion of its airport, according to CPN.
Scheduled for completion in 2029, the upgrade is expected to increase passenger capacity from 16 million to more than 18mn annually.
In addition, 156 private jets land at the airport’s dedicated terminal annually, highlighting Phuket’s appeal as a premier luxury destination.
The island has 17 ultra-luxury residential projects, each valued at B100mn or more, positioning it as a top four global destination for affluent property buyers, alongside Dubai, Florida and New York.
Land prices in Phuket have skyrocketed 700% over the past 20 years, with prime locations such as Rawai Beach and the Bang Tao area emerging as hotspots for high-end real estate investment.