An influx of Russians is transforming the holiday island of Phuket, driving up property prices as well as fuelling local resentment over the flow of money into the country.
On Bangtao beach, on the western side of the island, 22-year-old Russian tourist Dasha said she has been enjoying her time abroad.
“I love Phuket because it’s warm here and very beautiful and smiley people and tasty food and very spicy,” she said.
While Western countries have sought to isolate Russia with sanctions, Thailand has welcomed Russian visitors as it tries to rebuild its tourism industry post-COVID.
The Thai government has recently moved to increase the length of Russian tourist visas from 30 days to 90 days.
Almost half a million Russians arrived in Phuket in the first half of this year and more than 9,000 of those were granted long-stay visas.
To cater to this market, Russian restaurants and businesses have begun popping up, while signs and menus have been translated into Cyrillic.
Russia has even opened a new consulate on the island this year.
Real estate agent Kristina Kamysheva said there were a few reasons why Russians were drawn to the tourist hotspot.
“Russians love Phuket because Phuket is a very nice place to live and spend your holiday,” she told the ABC.
“The weather is good and we don’t have an ocean in Russia so that’s why Russians love to travel where they can swim and relax on the beach because we don’t have it in our country.”
Russians are also now the number one foreign buyer on the island and account for around 40-60 per cent of condominium sales to foreigners.
But while this is good news for real estate agents and home owners, the sheer volume of visitors appears to have changed the dynamic with Thai citizens.
Phuket draws in wealthy Russians
At the Sole Mio complex, which is located near Bangtao Beach and includes a rooftop pool, sauna, cryosauna and steam room, Ms Kamysheva says 80 per cent of the owners are Russian.
Interest from Russian buyers has contributed to a surge in property prices this year.
“Usually it’s 5 per cent every year the price increase but this year I think it boom[ed]. So it increased 10 to even 20 per cent (on the western side of the island),” she said.
Property expert Chatchawan Wattanachote said the property boom driven by the new arrivals has also had an impact on rental prices.
“In the first quarter of 2023, Russian people who’ve come to visit Phuket surged by 1,000 per cent and that’s made rental prices rise,” he told the ABC.
“The luxury condominium rental prices have risen by up to 300 per cent and you have to book up to a year in advance in the western part.”
But he said that hasn’t flowed through to the more inland parts of the island where local workers live.
“The worker area has not seen a similar surge because Russian people, rich people come to the tourist area and make prices [rise] by spending a lot. But the worker area is not like that,” he said.
Sakol Sutthichareon, who owns a guest house in Patong, said part of the problem is because Russian property buyers are renting out their properties to fellow Russians.
“Russian people run their own hotels, they provide car rental services and tour packages for Russian customers,” he told the ABC.
“They come as a group and they will stay at hotels owned by Russian businessmen … my hotel is small so I won’t get any benefit from it.”
Local taxi drivers like Sanya Kritsan share similar anecdotes about Russians using their own drivers and visiting their own restaurants, so their money doesn’t benefit the local economy.
“The reason local taxi drivers like me don’t earn much from Russian tourists is because they download foreign apps and use services from those apps so income doesn’t reach local taxis,” he said.
Locals worried about foreigners working illegally
There are also fears among some locals about Russians working illegally or engaging in criminal activity and attracting business rivalries.
But these concerns are not reflected in the statistics.
Between January and August, 635 foreigners were charged with offences, according to the local police department, and only 78 were Russian nationals, representing roughly 12 per cent.
Police said most cases were work-related offences and there was no evidence of a Russian mafia presence on the island.
Local Move Forward Party politician Thitikan Thitipruethikul said locals welcomed foreign visitors but wanted to benefit economically as well.
“When the Russian people flee from the war and they buy a lot of property here they make a lot of business. So some local people get a benefit, but not most of them,” he told the ABC.
He said he has heard many stories from his constituents about Russians working illegally on Phuket.
“I get complaints from local residents that some Russian people are working in the jobs that are prohibited in Thailand, such as hair salons and driver for the taxi,” he said.
“Thai people welcome foreigners to stay in Thailand but everyone needs to comply with the law.
“Some of them are working illegally and that is not fair for Thai people.”
But instead of cracking down on illegal Russian businesses, Mr Thitipruethikul’s party, Move Forward, wants to make it easier for Russians to work legally in Thailand.
“We’re trying to propose a new law to update the immigration law so they can work properly and then at least they can pay tax,” he said.
“When they work illegally they cannot hire Thai people and they’re not paying tax.
“So we think that if we bring everything down from the earth … I think it’s going to be better for all stakeholders.”
More tourists over winter
Ms Kamysheva denied there were tensions between Russians and locals on Phuket.
“Locals are so happy with Russian tourists coming here … and with the amount of people moving here,” she told the ABC.
“They go to the beach, to local vendors that didn’t have any money during COVID … so it’s very good for [the] local population to earn more money.”
Ms Kamysheva is expecting yet another influx of Russians arriving on Phuket in the next few weeks.
“Winter is coming and we expect a bigger amount of tourists coming here because Russians don’t want to be [frozen],” she said.
“And that’s good for business.”
