Mayor Gives Approval To Monorail And Patong Tunnel Projects

The Patong Mayor Pian Keesin has given his support to two major infrastructure developments

on the Thai island of Phuket - a light rail system and the Patong tunnel. Both projects would boost the island's already thriving tourist industry.

The mayor's approval follows in-principle support for the two projects from the Thai Government in February this year. Although full endorsement of the projects has yet to be given, the likelihood is strong that they will now go ahead. The interest of foreign backers has also provided impetus.

Both the light rail and tunnel projects are now open to bidders and Mayor Keesin said the Hong Kong-based developer JS Rock had already emerged as a leading candidate. The mayor said a delegation from JS Rock had visited Phuket several times and had held discussions with Phuket's Governor, Tri Augkaradacha, in Phuket City.

Foreign backers

The company has expressed an interest in both projects and says that the monorail could continue to Patong through the Patong Tunnel if both projects won simultaneous approval and funding.

The cost of building the light rail system is estimated at B15 billion for three routes: Phuket International Airport to Phuket City, Phuket City to Patong and Phuket City to Chalong Circle, with a total of 19 stations.

JS Rock works closely with the Bangkok-based Gold Phoenix Construction Consultant (Thailand) Co, as well as the Hong Kong-Korean venture company Zhi Shan Yan Construction. Company chairman Charles Wang has promised to carry out a study in cooperation with Japanese engineers, then return to Phuket with a clearer idea of how the rail and tunnel projects could be managed.

Rapid rise in tourism

The monorail is one option to transport passengers along the routes between Phuket International Airport, Phuket City and Chalong Circle. It would be required to deal with the rapidly rising number of visitors to the island, which is one of the big success stories of the Thai tourist industry. It is now the second most popular overseas destination in the world for Chinese tourists, suggesting that visitor levels "already up by nearly a third in 2011" will soar in future years.

By 2016, the Thai Government expects Phuket airport the country's second largest - to handle 11.5 million passengers a year. Many of the visitors will be affluent businessmen travelling in private jets and the airport is constructing a dedicated private jet terminal to deal with the increase in high-end passengers.

The infrastructure planning and the interest of foreign developers in Phuket are great news for property investors. A number of luxury developments have come onto the market such as the Singapore-based Castlewood Group's 8over8 Hotel, which has 151 suites, 19 stakeholders suites, the hotel is focused on less keys more service it's facilities including infinity edge roof top pools and fine dining with menus created by world leading celebrity chefs. It's also located in the beautiful area of Bang Tao beach, close to the Laguna Resort, which is popular with Chinese tourists.

"Phuket is the place to invest. The tourism rates are high and still rising with over 80% hotel occupancy rates," said Chris Comer, Managing Director of Castlewood Group.

by: Cain Masters

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