Thailand's largest island at 540 km²
Population is about 231,206 with up to 35,000 visitors at one time
More than 3 million visitors a year
Most populated town is Phuket City, with over 75,000 inhabitants
Currency is Thai Baht: 1 GBP = 50.83 THB (XE, 2013)
Main source of income used to be rubber, tin, agriculture and fishing
(www.phuket.com, 2012)
Thailand's second largest island at 228.7 km²
Population is over 63,000
Attracts over 1.5 million tourists a year
Main town is Nathon
Fishing and coconut plantations have been the major source of income
Currency is the same as Phuket (Thai Baht)
(www.kohsamui.org/samui, 2012)
In the last decade tourism has become a dominant form of income and the biggest earner in the area of Phuket
Ever since backpackers started arriving in Koh Samui in the late 70s, tourism has taken over from the traditional sources of income
Write down 3 costs and 3 benefits in Phuket and Koh Samui according to the stakeholder on your paper
Given what you now know about the costs and benefits of tourism in Phuket and Koh Samui, what policies would you put in place to ensure an equal balance between tourism and the local environment?
SUSTAINABLE TOURISM
Koh Samui...
Phuket...
Where is Koh Samui and Phuket?
Tourist Attractions
Examine the main economic benefits of tourism in Koh Samui and Phuket
Determine the main economic costs of tourism in Koh Samui and Phuket
Reveal any differences in economic impacts between Koh Samui and Phuket
Explore what scale of accommodation establishments results in larger benefits to the local economy of both islands
Discover what policies would be beneficial for the local economic development of the islands
Economic Impacts of Tourism in
Phuket and Koh Samui
Jessica Samuel - N0307385
Ibrahim Kamara - N0337233
Emmanuel Ronstadt - N0323807
Ying Ying - N0410614
Todays Agenda
Economic Impacts of Tourism on
Snake Farm
Beaches
Nightlife
Dining/restaurants
Thai Boxing
Wildlife
Sex Tourism
Hinta Hinyai
Buffalo Fighting
The Big Budda
Waterfalls
Sawadee Shrine
Diving
Butterfly Garden
Butler's Life Cycle
for Phuket and Koh Samui...
Now...
(World Travel and Tourism Council, 2012)
Considering the recent growth that both islands have experienced, which economic implications have become present?
Creates new markets for new products
Economic benefits
Generates employment
New tourist attractions can be used by locals
Funds new infrastructure
Stimulates growth of local exports
Helps diversity and stabilise the local economy
Strengthens exchange rates
Stimulation of infrastructure investment
Attractive destination to invest in (new businesses)
Increases the government revenues from taxation
Costs...
Other costs
- Opportunity costs
- Displacement effect
Economic
costs
Economic Dependency
Major accommodation establishments benefiting the local economy of the islands
- Asia Tsunami (2004)
- Job and financial insecurity
- Industry vulnerable to:
- Economic recession
- Natural disaster
- Changing tourism patterns
Increase in Prices
Infrastructure Costs
Leakage
- Increasing basic demands price hikes
- Wages not rising accordingly
- Difficulties meeting daily needs (local people)
Money leaving the income-generating region
Two forms of leakage
- Import leakage
- Export leakage
- Cost imposed on government and local people
- Public funding diverted from important areas to infrastructure
- Several projects planned to make the islands more attractive
- Airport expansion
- Improvements of highways
Enclave tourism
Which scale of accommodation establishments results in larger benefits to the local economy of the islands?
- Small-island natural feel
- Famous laid-back atmosphere
- Income made by Koh Samui currently goes to the Sarat Thani province, with Koh Samui only getting a share
- Consistent all-year-round climate
- Strict building regulations prevent development to take away its identity
Small to non-existing earning potential for locals business if hotels and resorts offer all-inclusive destinations as a consequence tourists will end up staying in their resort for majority of their stay
- Bigger, wider roads
- Consistent infrastructure in water, electricity etc
- Longer operating airport
- Road link to mainland to make it more accessible
- Income generated benefits island
- Multiple multi-story hotels
- Sophisticated shopping malls
- Promote Eco-Tourism to divert away from mass-tourism
- Raise awareness regarding the environment
National Tourism Development Plan 2012 - 2016
1. Strategy - Developing infrastructure and logistics (Linking with domestic and international tourism)
2. Strategy - Development and rehabilitation of tourism sites
3. Strategy - Development of creative economy
4. Strategy - Create confidence in Thailand's good image for visitors
5. Strategy - Participation of public sector, civil society and local administrative organizations
- The importance of natural resources conservation and of protecting the environment
- Partnership between two pioneering community-based tourism organisations
- Investment in new technology to improve clean water in Phuket
(Responsible Ecological Social Tours Project (REST) and the Thailand Research Fund Community Based Research Unit)
Differences between Phuket and Koh Samui in terms of economic impact of tourism
Euromonitor International (January 2010). "Euromonitor International's Top City Destination Ranking". Retrieved 2010-10-14.
http://www.samuiforsale.com/knowledge/thai-nominee-property-ownership.html#1
http://www.apo-tokyo.org/gp/e_publi/gplinkeco/30chapter28.pdf
http://mekongtourism.org/website/wp-content/uploads/downloads/2011/02/Sustainable-Tourism-Management-in-Thailand-A-Good-Practices-Guide-for-SMEs-by-Eric.pdf
http://www.thaiembassy.sg/press_media/news-highlights/thailand%E2%80%99s-national-tourism-development-plan
http://mekongtourism.org/website/wp-content/uploads/downloads/2011/02/CBT-Handbook-Principles-and-Meanings-by-CBT-I-Thailand.pdf
http://www.phuphiang.com/community_based_tourism.asp