18 March 2008

Thai property and tourist market on the road to recovery

The newly elected government in Thailand is pulling out all the stops to encourage the tourists back and in so doing re-liven the property market for investors. Airlines are being encouraged to open up more routes and increase frequency in an attempt to win back the confidence of the many millions of potential holidaymakers and visitors.

The economy has suffered badly due to political unrest, but experts say that the economic growth in 2008 is still expected to be somewhere in the region of 4.5%. The difficult challenges it will face are the high oil prices, maintaining the stability of its government, keeping the baht strong and ensuring the strength of its domestic recovery. Growth is expected to come mainly in the second quarter of the year and with it the prices of property will start to recover. Now is a good time to invest while confidences are being built.

Despite these challenges Sarah Heywood of Principal International says “our customers remain undeterred. There are strong signs that the market in Thailand as a whole is on the road to recovery, the newly elected government are already restoring faith by showing their commitment to large scale projects. All this is good news for our investors as prices remain competitive, and whilst there is no inheritance or gift tax, long term investment in the property market will remain a favourite for our clients.”

With at least a third of all Thailand’s visitors travelling to Phuket, the 5 million tourists passing through its resorts make it a popular destination. The Tourism Authority of Thailand is quoting a massive 14.8 million visitors that it expects to welcome to the country this year, and with occupancy rates exceeding 75%, the rental market in Thailand is still one of Asia’s most popular destinations. Principal International are able to offer a number of opportunities to invest in a luxury 5 star resort on the coastline and investors should act quickly to reserve units.