Phuket has become a luxurious new playground for rich Russians fleeing Vladimir Putin’s war, but some locals aren’t happy. An influx of Russians is transforming the holiday island, driving up property prices and fueling local resentment over the flow of money into the country.
Key Takeaways
- Phuket is experiencing a surge in Russian tourists and property buyers.
- Property prices and rental rates have significantly increased.
- Local businesses and residents have mixed feelings about the influx.
Russian Influx in Phuket
On Bangtao Beach, 22-year-old Russian tourist Dasha enjoys the warm weather, beautiful scenery, and spicy food. While Western countries have isolated Russia with sanctions, Thailand has welcomed Russian visitors to rebuild its tourism industry post-COVID. The Thai government has extended Russian tourist visas from 30 to 90 days.
Almost half a million Russians arrived in Phuket in the first half of this year, with over 9,000 granted long-stay visas. Russian restaurants and businesses have emerged, and signs and menus have been translated into Cyrillic. Russia even opened a new consulate on the island this year.
Property Boom
Real estate agent Kristina Kamysheva notes that Russians are drawn to Phuket for its pleasant weather and ocean access, which Russia lacks. Russians are now the top foreign buyers on the island, accounting for 40-60% of condominium sales to foreigners. This demand has driven property prices up by 10-20% on the western side of the island.
Property expert Chatchawan Wattanachote highlights that rental prices have also surged, with luxury condominium rentals rising by up to 300%. However, this increase hasn’t affected inland areas where local workers live.
Local Concerns
Local business owners and taxi drivers express concerns about the economic impact. Russian property buyers often rent out their properties to fellow Russians, limiting benefits for local businesses. Additionally, Russians use foreign apps for services, reducing income for local taxi drivers.
There are also fears about Russians working illegally or engaging in criminal activities. However, local police statistics show that only 12% of foreigners charged with offenses were Russian nationals, mostly for work-related offenses.
Political Response
Local politician Thitikan Thitipruethikul acknowledges that while some locals benefit from the influx, many do not. He has received complaints about Russians working in prohibited jobs. Instead of cracking down on illegal businesses, his party aims to update immigration laws to allow Russians to work legally and pay taxes.
Future Prospects
Kristina Kamysheva denies tensions between Russians and locals, stating that the influx is beneficial for local vendors. She expects even more Russian tourists to arrive in Phuket as winter approaches, which she believes will be good for business.
Sources
- Phuket has become a luxurious new playground for rich Russians fleeing Vladimir Putin’s war, but some locals aren’t happy – ABC News, Australian Broadcasting Corporation.
