28-7-2023 (BANGKOK) The picturesque island of Phuket has become an increasingly popular destination for Russian tourists and investors, thanks to the efforts of entrepreneur Alexander Nakhapetov and the allure of Thailand’s vibrant culture and beautiful beaches. Despite the ongoing conflict in Ukraine and the economic sanctions imposed on Russia, Phuket has emerged as an attractive alternative for Russians seeking an affordable and welcoming escape.
The island’s thriving “banyas” or steam baths, which opened last year, have drawn the attention of many Russians, including 41-year-old businessman Alexander Nakhapetov. However, the recent surge in Russian visitors has led to a surge in demand for these traditional baths, making it harder for regular patrons like Nakhapetov to maintain their routine.
Phuket has long been favored by wealthy Russian citizens, but the appeal has intensified due to the difficulties of traveling to competing European destinations amid the conflict in Ukraine. In 2021, there was an 82 percent increase in villa sales on the island, with approximately half of these properties being purchased by Russians, according to real estate agency Knight Frank Thailand. This influx of Russian tourists and investors has driven the establishment of various enterprises, from restaurants to saunas and concerts, all catering to the preferences of the new clientele.
Between January and June of this year, over 791,000 Russian nationals arrived in Thailand, representing an astonishing increase of over 1,000 percent compared to the same period in the previous year, as reported by the Thai Tourism and Sports Ministry. Phuket airport received more than half of these visitors, making Russians the primary source of tourists on the island in 2023, according to the Phuket Tourist Association.
The surge of Russian interest in Phuket has also had a positive impact on the local property market, particularly at FazWaz Property Group, where Russian speakers have become the largest nationality of buyers. The introduction of various visa programs in Thailand has further facilitated longer stays for those with financial means or special skills, making the country an attractive destination for investors and professionals.
The growing importance of Phuket in expanding Russia’s diplomatic reach in Southeast Asia was evident when Foreign Minister Sergei Lavrov officially opened a consulate on the island in July. During his visit, he met with his Thai counterpart to strengthen ties between the two nations.
While sanctions have posed challenges for financial transactions, many Russians have adapted by using alternative payment methods, such as digital assets and cash in dollars and euros. Despite these obstacles, the allure of Thailand’s beaches, nightlife, and openness, particularly in Phuket, Krabi, and Pattaya, has remained enticing for many Russians seeking respite from geopolitical tensions.
Phuket has embraced its Russian visitors by incorporating Russian-language announcements at the international airport, as well as using Cyrillic script for shop names and street signs. Local vendors have also catered to Russian tastes, offering traditional dishes alongside Thai favorites.
Notable Russian figures, including billionaire Alexander Svetakov and construction materials tycoon Igor Rybakov, have been drawn to Phuket, with the former’s yacht, Cloudbreak, spotted on the island last Christmas.
Despite concerns about rising inflation and its impact on the local economy, the prevailing sentiment among the island’s residents and tourists is one of tolerance and harmony. Yuri Vorona, the manager of Roadhouse restaurant, which mainly caters to Russians and their Thai friends, emphasized the wonderful and peaceful atmosphere that prevails, welcoming everyone regardless of their nationality.
