BANGKOK — Phuket is gearing up for the future and is becoming a global destination for tourism and real estate. The province is a key area for accelerated infrastructure development and is seeing significant investment in land, rail, sea and air transportation systems.
Recently, Prachachat Business compiled a list of key investment projects from government agencies, state-owned enterprises and the private sector.
New Roads and Expressways
Under the road and expressway development plan, the Department of Highways has outlined several key projects to enhance traffic efficiency and alleviate congestion. Notable projects include the expansion of Highway No. 4027 (Baan Para to Baan Muang Mai) from two lanes to four lanes, which also involves constructing bridges and underpass U-turns over a distance of 4.55 km, with a budget of 650 million baht. Construction is set to begin in October 2024 and is expected to be completed by July 2026.
Another project is a new bypass connecting Baan Muang Mai with Phuket Airport Junction. It is a four-lane road with a length of 1.95 km and a budget of 1.3 billion baht, which is currently in the land acquisition and budgeting phase for the financial year 2025.
As for the at-grade crossing at the intersection of Highway No. 402, No. 4027 and No. 4025, which is planned as an underpass at the Tha Ruea intersection (KM 34+680 of Highway No. 402), the project was proposed for cancelation in September 2024 with a budget of 2.38 billion baht.
In addition, the Expressway Authority of Thailand (EXAT) is planning two major projects: the Kathu-Patong Expressway (14.67 billion baht) and the Muang Mai-Koh Kaew-Kathu Expressway (42.633 billion baht), which will be Thailand’s first expressway with a mountain tunnel. Construction of these projects is scheduled to begin in 2025 and be operational by 2031.
The project has an Economic Internal Rate of Return (EIRR) of 24.63 percent and a Financial Internal Rate of Return (FIRR) of 1.53 percent. It is currently awaiting approval. The Expressway Authority of Thailand (EXAT) may proceed with self-investment, as no private companies have expressed interest in funding the project. Construction is expected to begin in 2025, with operations starting in 2031.
New Andaman Airport
In the aviation sector, Airports of Thailand (AOT) has proposed three important projects. The first is the expansion of Phuket Airport (Phase 2) to increase passenger capacity from 12.5 million to 18 million annually, with a budget of 6.211 billion baht. Construction is scheduled to begin in 2026, with operations starting in 2029.
The second project is a seaplane airport within Phuket Airport to facilitate seaplane traffic to popular destinations such as Samui, Pattaya and Hua Hin, which is currently undergoing an environmental impact assessment.
The third project is the construction of Andaman Airport in Phang Nga, which is designed to handle 22.5 million passengers per year with a budget of 80 billion baht. This project will provide seamless transportation between Phuket and Andaman airports. Construction is scheduled to start in 2026 and operation in 2030-2031.
Rail System Development (58.5 km)
In terms of rail development, the Mass Rapid Transit Authority of Thailand (MRTA) is planning Phuket’s first rail transit system. This rail line will connect Phuket Airport to the five-lane intersection of Chalong and will be 58.5 km long. The cost is 35.35 billion baht.
The project is in the study phase of a public-private partnership (PPP). Construction is expected to start in 2027 and operation in 2031.
These government-led mega projects aim to improve Phuket’s transportation and infrastructure capacity and reflect the province’s vision for economic development and sustainable tourism growth.
Economic Benefits of Public Projects
According to SCB EIC, four industries will benefit from the booming growth of Phuket, a global destination for tourism and real estate. These include:
Hotels and restaurants: the sector has seen steady growth from last year to date, especially in high room rates.
Real estate: Foreign nationals, especially Russians affected by the Russia-Ukraine war, have increasingly relocated to Phuket, leading to a growing demand for residential real estate. Property transfers in the first eight months of 2024 (January-August) increased by 16% compared to the same period in 2023. Condominiums and single-family homes near international schools have become particularly popular.
Healthcare: Private hospital revenue in 2024 surpassed pre-COVID levels in 2019. This growth is driven by the influx of long-term foreign tourists and affluent Thai tourists, who often travel to Phuket for leisure and invest in second homes.
International schools: The increasing number of expatriates, including Russians, Chinese, Europeans and Thai celebrities moving to Phuket has driven up demand for international schools.
Private sector investment not only increases Phuket’s economic value, but also strengthens its image as a globally competitive city. Phuket leads the way in tourism, healthcare, education and services, offering unsurpassed quality and world-class standards.
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