posted by Savanah on Apr 11
Foreign investments have dropped during the last year. Some of the cities in Thailand that are seriously affected by this are Hua Hin, Pattaya, Phuket, and Krabi. Projects involving the development and construction of luxury properties such as new resorts, restaurants and five star hotels, Phuket and the other cities have put them on hold. Most of all this affects the tourism and high end residential development industries. Phuket alone, had experienced enormous growth in the financial sectors during the last few years, but the global recession has ended that streak. Most of the investors, new property owners and buyers and tourists and businesses are foreigners. This has been affecting not only the luxury developments, but local apartment complexes and market places as well. And many projects that were still in the pre-production phase have been put on hold. Most financial experts believe that the global market will need to improve before the projects can be re-initiated and completed.
Phuket itself, is fortunate, compared to other cities and regions in the area, as most of the income is not derived from mortgage financing, but through the tourism industry, which has declined the least in Phuket. The government’s hope is that while many are suffering during the global crisis, those who have continued to retain their assets will also continue to invest them wisely in Thailand. Many of those with power in the past, such as those in Hong Kong, the United States and Europe, have lost that financial power, resulting in an up to fifty percent drop in these country’s investments and future holdings. Those looking to develop are being advised to wait until the later half of 2010. What does have those most concerned in Phuket, is not the global recession but their own politically uncertain times. They believe that until the unrest in the city is resolved, foreign investors will continue to postpone their actions.
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