Phuket: Economic of Paradise

Phuket: Economic of Paradise

Every year more and more tourists from all over the world visit Phuket. Many of them make a decision to reside in the Land of thousand Smiles" and buy housing here. They seriously consider residing in this place the nearest future.

Dreams of millions of them have already come true – they have become happy holders of property in Phuket. Phuket was named the best resort of Southern Thailand for leisure, business and living. Nevertheless, among a great number of foreigners there is a steady stereotype that this piece of heaven is just a part of a backward third-world country. Then let’s try to understand why so far the beautiful island has been attracting alien investors.

The secret of success is that for recent decades of 20th century Thailand has won the reputation of one of Asian dragons; as a result the Kingdom has entered into an honorable group of newly industrialized countries of the second generation. Today it is one of the speediest growing economies in the entire world. 

The question “Why does real estate continue to be extremely popular amid current financial crisis?” is still on the agenda. Firstly, the reason of high popularity of Phuket property lays in its convenient geographical location. The island is located in a very suitable for tourists and business travelers. The second reason is sufficient diversified economy, which means large foreign investments in the local economy have been made by side of overseas investors (basically by the Americans and the Japanese). You may be surprised but at the beginning, in order to draw alien investors’ attention the authority allowed foreign companies to get land ownership and pay low taxes.  The next reason is loyal conditions for small and midsized enterprises. The Thai law both permit and encourage the idea of business. It is quite easy to set up a company and to start earning money if you have a strong desire and your eyes are shining bright. Everything what you need to do is to find an office and to register an entrepreneur. Even the tax policy is set up to support just-beginners. The first income tax is paid only after the third year since company has been opened. The final reason is a well-developed touristic industry. As for Phuket, tourism business is ranked the first in the resort revenues. Moreover, the flow of visitors goes on growing year by year.

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