Thinking of starting something in Phuket?
The Business Side of the Island reveals the real journey behind the dream — from navigating red tape and low season slumps to building loyal teams and finding the right local partnerships. Whether you're eyeing a beach bar, yoga studio, or online service, this guide shares the insights no one tells you about running a business in paradise.
Table of Contents
The Dream vs. The Daily Reality
There’s a romantic idea that draws people to Phuket. It’s the vision of opening a little café by the beach, starting a yoga studio with ocean views, or launching a business that runs from your laptop while you sip coconuts and watch the waves. For some, that dream does come true. But behind the palm trees and slow season discounts, the day-to-day reality is often more complicated than it looks.
When I first got started, I was younger, full of energy, and honestly excited by the challenge. I knew things would be different here, but that was part of the appeal. I was also lucky. I had good friends to help show me the way and solid local talent who guided me through the maze of government departments and processes. My first impression was that there was always someone who could help you figure things out, usually for a fee. It felt like that made everything more flexible, more relaxed, less rigid than what I was used to back home.
But over the years, I learned something important. There are really two ways of doing business here. One is quick and informal, where problems get “handled” through networks and shortcuts. The other is fully by the book. If you want to follow every rule and stay fully compliant and fully informed, it can actually be harder here than it is at home. More paperwork, more unexpected delays, more red tape.
A lot of people assume Phuket is the wild wild west when it comes to business. But that’s a misunderstanding. There are rules, plenty of them. Just because they’re not easy to find or read in English doesn’t mean they don’t exist. And when enforcement happens, it often comes suddenly, without warning.
Running a business in Phuket isn’t just a tropical lifestyle upgrade. It’s a long-term balancing act between what’s possible, what’s legal, what works for your team and community, and what you can personally handle. It’s not easy. But if you love the island and you’re prepared for the reality, it can absolutely be worth it.
Types of Businesses That (Actually) Work Here
What works in Phuket really depends on two key things: where you’re setting up and who your target market is. Are you in a tourist-heavy area like Patong or Kata? Are you trying to serve digital nomads, long-term expats, or local families? The answers will shape everything — from your pricing to your branding to your survival during low season.
It’s also important to understand the legal landscape from the beginning. There are certain jobs foreigners are not allowed to do in Thailand, but that doesn’t mean the business itself is off-limits. You just need to structure your company correctly and be aware of the rules in your specific industry. [Insert link to company setup article here.]
Some of the business models we’ve seen work consistently well include:
- Food & Beverage: Cafés, beach bars, juice stands, and health-focused restaurants
- Wellness: Gyms, yoga studios, Muay Thai camps, detox or retreat centers
- Hospitality: Boutique hotels, pool villas, serviced apartments
- Real Estate & Rentals: Sales, management, long-term rentals, and buyer services
- Ecommerce & Service Work: Design studios, content agencies, consulting — often remote-run
- Local Services: Laundry, surf shops, pharmacies, logistics and delivery
That said, success isn’t just about joining a trend. Just because you see three coworking spaces open in a month doesn’t mean you should open a fourth. And we’ve all seen the same story over and over — too many massage shops, too many bars, too many same-same restaurants with nothing new to offer.
The best businesses here do two things really well: they offer something both expats and local Thais actually enjoy, and they bring a bit of originality to the island. It doesn’t have to be revolutionary. But it should feel fresh. Even a twist on something familiar can go a long way in a market that gets tired fast.
Be useful. Be consistent. And try not to copy-paste what everyone else is doing. Phuket doesn’t need another cookie-cutter bar. It needs more people willing to bring something interesting to the table.
Setting Up Shop: Legal, Licenses & Local Structures
One of the first forks in the road when launching a business in Thailand is deciding how to legally structure it — and who actually owns what.
Foreigners can’t just show up and open a sole proprietorship. In most cases, you’ll need to set up a Thai company, which usually involves a local partner holding majority ownership on paper, or going through the proper legal channels to set up a company where foreign ownership is protected through shares and structures. There are also options like BOI (Board of Investment) approval or special economic zones, but most small business owners won’t qualify for those routes.
What’s even more important than getting the structure “right” is getting the right person to help you through the process.
“My best advice? Find your right-hand man or woman. Someone local. Someone who knows the area and the industry. That one relationship can save you months of stress. Trying to do everything yourself without being fluent in Thai is a fool’s game.”
Once your company is set up, the license maze begins. Depending on your industry, you might need:
- FDA licenses (for food or supplements)
- Alcohol licenses
- Signage permits (yes, even your logo sign can need approval)
- Music licenses if you’re playing tunes at your venue
None of these are impossible — but none of them are quick either.
Then come the visa logistics. If you’re running the business yourself, you’ll need a work permit and non-B visa, tied to the company. If you plan to hire other foreign staff, you’ll need to meet capital and Thai staff ratios to support each permit. It’s not necessarily expensive, but it does require upkeep — annual renewals, minimum salary thresholds, tax and social security filings, and more.
“If I could do one thing differently, I wouldn’t have set up so many companies. I would have kept what I could under one umbrella. I also wish I had invested in language lessons from the start and stuck with them. Even if your Thai is never perfect (mine definitely isn’t), the effort pays off over and over again.”
One more thing to consider: you may not need to open a Thai company at all. If your business is fully online and doesn’t transact inside Thailand, newer visa options like the DTV or long-term digital nomad permits might be a better fit. But for brick-and-mortar shops, hospitality, or service work on the ground — company setup is still the standard path.
Finding the Right Spot — Renting Commercial Space in Phuket
Where you open your business in Phuket is often just as important as what you’re offering. The island is full of “perfect” looking spots that end up being dead zones in low season, or areas that thrive only at certain times of day. And while foot traffic matters, understanding your actual customer flow is what makes or breaks it.
Some neighborhoods have a strong local base and schools nearby (like Chalong or parts of Rawai), which helps with year-round survival. Others — like Bangla Road in Patong — are driven by fast-turnover tourism, where your business model needs to be built around volume. Kata and Karon can be hit or miss depending on the year, while areas like Boat Avenue or Cherng Talay tend to skew toward more premium expat traffic.
“Don’t assume a spot is good just because there’s foot traffic. Watch it for a week. Morning, evening, weekday, weekend. Ask neighboring businesses how it performs.”
Landlord relationships also make a huge difference. Some are helpful and collaborative, others hands-off or hard to reach. Always get your agreement in writing, and try to include:
- A cap on annual rent increases
- Flexibility for subletting or transferring the lease
- Rainy season or soft-opening concessions
📚 Want more?
We’re putting together a guide on how to find the right commercial space in Phuket — with practical tips, things to watch out for in leases, and suggestions on where to start your search.
Read the full article → How to Find (and Secure) a Commercial Rental in Phuket
Business Banking & Payments
Thailand’s banking system works, but it doesn’t always match what many foreigners expect especially when it comes to business.
To operate legally, you’ll need a Thai business bank account tied to your company. Not all banks are foreigner-friendly, and the process can take a few trips and plenty of paperwork. You’ll need company documents, your tax ID, and in most cases, proof of directorship or a valid work permit.
Don’t expect bells and whistles. There are no overdraft facilities for small businesses. No company credit cards. No flexible banking tools you might rely on elsewhere.
“Accounting can be a headache if you don’t stay on top of it or if your accountant keeps you in the dark.”
Find an accountant who doesn’t just file your paperwork but also helps you understand the key numbers, timelines, and what the Revenue Department expects. Don’t leave it until year-end to discover you’ve been filing something wrong for months.
Digital payments like PromptPay and LINE Pay are widely used. Customers, especially Thai ones love scanning a QR code to pay, so set this up early and make it visible at the counter.
Also, be ready for cash-heavy operations. While Phuket is modernizing quickly, many suppliers and even some customers still prefer cash. Have a clear system for tracking, storing, and reporting it.
The People Side: Hiring, Managing & Building a Team
Building a team in Phuket is one of the most rewarding — and challenging — parts of running a business here. The dynamics are different from what many foreigners are used to. There’s a stronger sense of workplace as family, especially in small teams. Age and seniority matter more. And trust is often built slowly, through consistency and presence, not policies or contracts.
In the early days, I was lucky to work with an incredible woman named Soon, who became my right hand. She helped me navigate everything — from operations to communication with suppliers and local officials. Over the years, I’ve been fortunate to find and work with many more great people. But it took time and effort.
“There is some amazing talent in Thailand — you just have to put in the work to find it. Interview more people than you think you need to. The right person can completely change how your business runs.”
If you’re hiring for a leadership role, choosing someone slightly older can help. Age brings perceived authority in Thai culture, which can make managing teams smoother, especially in service industries where hierarchy and tone carry extra weight.
Managing staff here isn’t wildly different from anywhere else — but the way people get things done can be. One of the best pieces of advice I got early on came from a friend who said:
“Don’t micromanage. Be clear about the outcome you want, and let them figure out how to get there. It might not be your way, and if you try to force your method, it can backfire.” – Gordon (RIP old friend)
That mindset has saved me a lot of friction over the years. It’s about respecting local ways of doing things, even if they feel unfamiliar at first.
If you’re clear, consistent, and kind — and you give your team room to work — you’ll usually get great results.
Additional Note on Staffing
Staff turnover is common in Phuket, especially in high-turnover industries like F&B and hospitality. But there are things that help:
- Pay fairly and on time (Shouldn’t need to be said, but it does)
- Respect time off and family obligations
- Spend time training
- Provide clear paths for growth, or at least consistency in roles
Sometimes, just being steady as a leader makes all the difference. People stay where they feel respected and seen.
Seasonal Flows: Money, Tourists & Cash Flow Pains
If you’re planning to run a business in Phuket, you’d better get familiar with the seasons — not just the weather, but the flow of people, energy, and money that comes with them. The island runs on rhythms: high season brings crowds, cash, and chaos. Low season brings quiet mornings, closed shutters, and tight margins.
For some businesses, especially those focused on tourists, the shift hits hard and fast. One minute you’re riding a high of daily sales and packed bookings — the next, you’re watching the rain pour down while calculating how many weeks you can go without a full house.
“I’d lived here for a while before starting a business, so I knew about the seasonal changes. But you really feel it once you’re in the game — especially in F&B. The moment high season ends, it’s like a tap being turned off.”
Planning for the Dip
For some, low season is panic mode. For others, it’s an opportunity.
“Personally, I use the quieter months to reset. It’s the perfect time to refine SOPs, do staff training, catch up on admin, or finally fix something you’ve been ignoring since December. It’s also a great time to look for new property — after Songkran, the market shifts and you can often find better deals.”
If your business relies entirely on tourist foot traffic, you’ll need to plan ahead — financially and mentally. That might mean:
- Building up a cash cushion during peak months
- Running loyalty offers for locals or expats
- Get some staff to agree to take leave during the off season
- Make sure you have enough runway to get through at least one low season
Landlords, Leases & Low Season Leverage
Rent can be one of the biggest fixed costs in Phuket, if you’re in the busy tourist areas — and one of the trickiest to navigate.
Some landlords are understanding. Others are not. Some negotiate rent relief during rainy months or offer stepped contracts that align with high/low cycles. (Very few) Others want 12 months up front, no questions asked and key money. It varies wildly, so having a good relationship (or a savvy negotiator) helps.
[Future Article on picking the right location to open business]
Best Seasons, Worst Seasons
If you’ve been on the island long enough, you start to think in cycles. Not just by month, but by vibe. Some seasons bring electricity. Others bring a kind of slow, soggy drag.
The best seasons?
No surprise the peak months of December through February tend to be strongest across the board. The weather’s perfect, Europeans are on holiday, and the island is fully alive. After COVID lifted, we saw an incredible rebound in late 2022 and early 2023, businesses reported their best-ever months, driven by pent-up demand, revenge tourism, and a new wave of digital nomads. If you were open and ready, it was like hitting the jackpot.
April can also be surprisingly strong, especially leading into Songkran. Regional tourists from Malaysia, Singapore, and Hong Kong often book short getaways, and locals still come out to celebrate. Businesses with indoor seating or flexible setups often do well here.
“One of my best seasons was right after the first lockdowns lifted. Everyone was so excited to be out again. That December was electric. People were spending, celebrating, tipping big. It felt like Phuket was alive again.”
The worst seasons?
Everyone expects September and October to be quiet, and they usually are. But it’s not just about lower tourist numbers. Heavy rain, flooding, and storm warnings can literally shut things down. You’re still paying rent and staff, but no one’s walking through the door. It’s mentally tough.
Some businesses have also struggled during times of political tension or global uncertainty. Currency shifts, visa delays, or health restrictions can spook travelers, and it doesn’t take much to throw off bookings. Even a few weeks of bad press or travel alerts can ripple across the whole island.
And sometimes the pain is more personal. You overstocked for a crowd that never came. You staffed up too early. You got excited about a new space, and then the lull hit.
Knowing your rhythms, and planning for them, can be the difference between growth and burnout. Don’t over capitalize!
Runway Matters More Than You Think
“This applies anywhere, but especially here. Too many people blow their budget getting a venue ‘just right’ and forget to save enough to survive their first year.”
The harsh truth is: even great ideas take time to catch on in Phuket. If you’re not already known or part of a large referral network, word of mouth takes months. You may not hit breakeven until high season, and you’ll likely face 1–2 slow quarters right out of the gate.
Your initial investment needs to include:
- Marketing spend or local outreach budget
- Operating capital for 9–12 months
- Rent + staff buffer
- Unexpected maintenance (rain does damage fast)
If you run out of fuel after the launch party, you won’t make it to the good part.
Community, Word-of-Mouth & Local Support
Phuket might feel like a revolving door of new faces, but what really sustains a business here — especially the ones that last — is community.
Whether it’s long-term expats, Thai regulars, seasonal visitors who keep coming back, or that one neighbor who brings friends every week, these are the people who become the heartbeat of your business. And often, your best marketing channel too.
“If you’re running a local business, I think supporting other local businesses goes a long way. It might not always be reciprocated, but it creates a kind of ecosystem. You show up for others, and in time, they show up for you.”
Once you’ve been here a while, you start to have your favorites — the fruit shop that always throws in an extra banana, the place you go for breakfast on slow mornings, the crew that always remembers your order. That energy translates. People remember how they’re treated. And if your business earns that place in someone’s rotation, you’ve already won half the battle.
The Grapevine Effect: Phuket’s Real Marketing Machine
Forget expensive ad campaigns. In Phuket, Facebook groups, WhatsApp chats, and casual conversations at the beach will do more for your visibility than almost anything else.
The best kind of buzz happens when someone says, “Hey, have you tried that new place near Rawai yet?” Or posts a photo in an expat group that makes a few hundred people take notice. It’s organic. It’s unpredictable. And it’s powerful.
The key is to show up consistently and give people something to talk about — a warm welcome, great product, local collaboration, or just being a kind human in the neighborhood.
“Our café, Wilson’s, has been lucky to have a loyal group of locals who’ve supported us for years. That steady love matters more than you can measure. In the early days, a few key collaborations — with Nanabowls and Phuket Cleanse, for example — gave us exposure, fresh energy, and cross-pollination that really helped. It wasn’t planned. It just came from mutual support and shared values.”
That’s the thing about Phuket. You never really know where your next boost will come from — a fitness retreat, a wellness brand, a digital nomad with a big following, or someone who just loves your place enough to bring friends every week.
Communities That Actually Help
If you’re new to the island or launching something fresh, these are some of the online spaces where word-of-mouth magic can happen:
- Phuket Buy & Sell – Not just for secondhand goods; people notice businesses that comment helpfully or post interesting things
- Rawai & Nai Harn Info Group – Hyper-local and surprisingly supportive
- The Phuket Digital Nomad Network – Great for service-based businesses or events
- Phuket Expat Community – Big group, mixed tone, but high visibility
- Phuket Foodies – If you’re in F&B, this is where the food hype starts
[ADD LINKS TO REAL GROUPS]
Also, don’t underestimate private WhatsApp groups. Each gym, yoga studio, coworking space, and school has its own little ecosystem. Be a kind, consistent presence, not a spammer and people remember you.
How to Collaborate Without Feeling Salesy
The best collaborations in Phuket happen casually. It starts with real relationships — showing up at someone’s event, supporting their opening week, grabbing coffee and chatting about shared values.
If you want to propose something, keep it light:
- “I love what you’re doing — would you ever want to do something small together?”
- “We’re testing a pop-up and thought of your space. No pressure — want to hear more?”
- “Let me know if I can help support you — we’ve got a small following, happy to share.”
The key is to offer value first. Make it feel like a two-way street, not a pitch.
Be a good neighbor first. Collaborator second. Partner third. That’s how it works here.
The Emotional Side: Burnout, Breakthroughs & Staying Inspired
No one really talks about the emotional side of running a business on an island, but it’s there. Beneath the sunshine and sea breezes, there are hard days, long nights, and moments where the visa paperwork, seasonal slumps, or distance from home feel heavier than you expected.
“I still remember my first Christmas away from home. I was feeling a little homesick and disconnected. I ended up going to a hotel buffet for Christmas lunch with some friends. After a phone call with my family and a few prawns and slices of honeybaked ham, it started to feel okay again.”
Phuket has a funny way of bringing people together when you need it. Now, I’m lucky enough to have some of my best friends living here on the island and both my mum and dad living here too. Phuket is now home.
What Keeps Me Going
“Routine keeps me sane.”
It’s not the most glamorous answer, but it’s true. A simple rhythm, morning walks, morning coffee, my work, the food I love, people I trust. That’s the foundation. I know a lot of people go through ups and downs here. The island has a way of intensifying both the highs and the lows. But I’ve been lucky. I’ve built stability, and I’ve got amazing people around me.
And when motivation dips, which it does for everyone, I remind myself it’s okay. Life comes in seasons. It’s normal to have down weeks. Or down months. The key is to keep going. Keep showing up. And don’t carry the hard stuff alone.
“A problem shared is a problem halved.”
Talk to people you trust. The people in your life want to help. And more often than not, they’re carrying something too.
Quick Hits: Business Owners Share Their Best Advice
You could fill a book with all the lessons Phuket teaches you, and maybe someday someone will. But for now, here are a few hard-earned truths worth keeping in your back pocket.
💬 “If I could tell new business owners one thing…”
“Take some time to enjoy yourself first.”
Before you dive into setting up a business, live a little. Move around. Try different areas. Get a feel for what kind of life you actually want to build — not just what looks good on Instagram.
“Start slow.”
You don’t need to go all in on day one. Make small bets. Test the waters. Learn as you go.
“Find the right partner or first employee.”
This can make or break your early momentum. The right person will give you eyes, ears, and instincts you don’t yet have.
“Seriously consider finding a real Thai partner.”
Not just for legal reasons — for insight, connection, cultural guidance, and longevity.
⚠️ Mistakes to Avoid
“Don’t forget your re-entry permit.”
If you’re on a single-entry visa and you leave the country without a re-entry permit, you risk invalidating your visa entirely. It’s a simple detail, but it can seriously mess things up.
“Always negotiate your lease.”
Landlords may start with sky-high rates or unclear terms. Don’t just sign and hope. Make sure you build in a cap on annual rent increases, or you could get priced out of your own location after one good season.
Looking Ahead: What’s Changing in Phuket Business Culture?
Phuket has always evolved, season by season, boom by bust but in the last few years, the pace of change has accelerated. Post-COVID brought a surge in polished, Instagram-ready venues. Coworking spots popped up faster. Cafés upped their design game. Real estate listings got sleeker. And with digital nomads, influencers, and LTR/DTV visa holders now helping shaping the island’s rhythm, the expectations around quality and consistency are shifting too.
But the next five years? They’re going to be even more interesting.
Don’t forget the Thai Market
One of the biggest shifts happening quietly and sometimes overlooked by foreigners is the growth of Thailand’s middle class. Access to personal credit is increasing. Discretionary spending is more common. While it may be temporarily pulled back due to global uncertainty, it’s a wave that will likely return stronger.
“Trends in Phuket are the same as everywhere, global trends. Thai customers are getting more discerning, and they’re spending more on experiences, food, wellness, and lifestyle.”
That also means local customers shouldn’t be treated as an afterthought. If you can build something that resonates with both tourists and locals, you’re building a much more resilient business. We are in Thailand after all and there are over 70million Thais.
Education First to Entrepreneurship
Another long-term shift is happening in mindset. Historically, Thai culture has put enormous emphasis on formal higher education. But with the rise of AI, personal learning, and access to global knowledge online, a new generation is leaning into self-education, freelancing, and starting their own ventures.
“I think we’ll see a major flip in education beliefs over the next 10 years more startups, more freelancers, more nomads. Thai people are already very entrepreneurial. That’s only going to grow.”
This creates opportunities not just for new business types, but for tools, events, coworking, and community spaces that support local founders, not just passing digital nomads.
Evolving Visitor Profiles & Travel Patterns
Tourist numbers are slightly down this year — especially compared to the post-pandemic surge. Chinese tourism, in particular, has slowed. Domestic travel seems to be the preferred choice for many Chinese travelers at the moment, and there may be some cultural discomfort around recent cannabis laws in Thailand.
Russian visitors are still coming, but the numbers have dipped from the initial post-war boom. That said, Phuket continues to attract a wide mix of European, regional Asian, and increasingly long-term visitors.
“We’re seeing more people staying longer, often on new visa types like the DTV or LTR. That shift toward semi-permanent residents could change how people build businesses, more loyalty, more community, and more focus on sustainable service, not just short-term gains.”
In short: Phuket is still Phuket; vibrant, unpredictable, full of opportunity. But it’s also growing up, digitally integrating, and moving beyond the package tourist and beach bar economy of years past. The next wave will belong to the businesses and individuals who are ready to evolve with it.
Final Reflection
If you’ve made it this far, maybe you’re thinking about starting something here yourself. Or maybe you’re already in the thick of it and just needed to hear that someone else has walked the same path.
Phuket is a place that will test you, shape you, and sometimes wear you out. But it also has a way of surprising you, with its people, with its moments, with the way a simple sunset or unexpected act of kindness can reset your whole perspective.
I’ve made mistakes. I’ve learned a lot the hard way. But I’ve also built something I’m proud of. Not just a business, but a life, with routine, with people I love, and with a little cafe that started as a side project and somehow became home.
If you’re thinking about building something here, my advice is simple: take your time. Build slow. Find your people. And when it gets hard, which it will, ask for help. Phuket has a quiet way of showing up for those who show up for it.
This island isn’t for everyone. But if it’s for you, you’ll know.
🧭 What’s Next?
If you found this guide helpful, you might enjoy:
- [Starting a Business in Thailand: Legal Basics & Setup Tips]
Everything you need to know before forming a Thai company.
(LINK OUT) - Breaking down the new long-stay options for business owners and remote workers.
- Real interviews with the people building Phuket’s new economy — one coffee, villa, or retreat at a time. (Coming Soon)
✨ Share Your Story
Do you run a business in Phuket?
Have lessons, mistakes, or wins to share?
We’d love to hear from you. Send us a message or pitch your experience, whether it’s a full story, a one-liner tip, or just something you wish someone told you sooner.
📧 Email us at [email protected]
💬 Or DM us on Instagram @phuketcommunity_com
