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Phiphat: Price-cutting harming Phuket’s marine tour safety

Phiphat: Price-cutting harming Phuket’s marine tour safety

PHUKET: Deputy Prime Minister and Transport Minister Phiphat Ratchakitprakarn has backed the introduction of a minimum price system for Phuket’s marine tourism sector, warning that rampant price-cutting is undermining safety, service quality and the long-term survival of local businesses.

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By The Phuket News

Monday 26 January 2026 01:03 PM


 

Mr Pipat made the remarks during a meeting in Phuket on Friday (Jan 23) with the Phuket Tour Boat Operators Association and more than 40 marine tourism operators, convened to hear concerns over structural problems facing the industry.

The discussion was led by association president Krisada Pichetphongsanon and attended by Dr Ratchapong Chukaew, Secretary to the Minister of Transport, Phuket Governor Nirat Pongsitthaworn, provincial executives and representatives from relevant agencies.

Operators told the meeting that aggressive price competition has become the sector’s most serious problem, forcing businesses to sell tours at a loss in order to increase volume. They warned that this practice is driving operators out of business while eroding safety standards and the overall quality of Phuket’s tourism offering.

Mr Phiphat said he agreed with calls for a minimum pricing mechanism, noting that fair pricing is essential if small and local businesses are to operate sustainably in a highly competitive market.

He proposed that business associations jointly calculate the real cost of tour operations on a ‘per head, per day trip’ basis to determine a minimum price that allows operators to break even. He also encouraged associations to establish self-regulatory measures to curb destructive price-cutting.

At the provincial level, Mr Phiphat suggested that the Phuket Governor act as the central coordinating figure, working with vice governors, business associations and relevant agencies to establish a “provincial minimum price agreement” as a formal framework for cooperation between the public and private sectors.

He added that he would raise the issue with the Director-General of the Department of Tourism, stressing the need for more on-the-ground engagement by central authorities to address tourism problems at the provincial level, rather than relying solely on oversight from Bangkok.

The meeting also addressed maritime safety, including boat collisions, speedboat operations, driver standards and vessel inspections. Mr Phiphatsaid the Transport Ministry would work closely with the Marine Department to strengthen inspections of personnel and vessels before operations begin.

He stressed that inspections must go beyond paperwork and licensing to assess operators’ actual readiness to provide services safely, in order to systematically improve tourist safety.

Mr Phiphat said the discussions reflected a broader policy shift away from an unregulated, free-market tourism model toward a quality-based system built on fair pricing, real operating costs, high safety standards and sustainable local businesses.

He added that Phuket would serve as a pilot province for restructuring the tourism economy, with lessons that could be applied nationally to address long-standing structural issues in Thailand’s tourism industry.