Last year, the holiday island saw its tourism income plunge by at least Bt58 billion, research by the Kasikorn Research Centre (K-Research) published last week indicates.

Phuket, the most-visited destination in the South, has rebounded on the back of aggressive real-estate development, notably by big local and international hotel chains and developers. The Pearl of the Andaman has since beefed up the capacities of its airport, healthcare infrastructure and sports and other facilities to meet tourism demand.

K-Research predicts that this year the number of tourists will rise to 4.7 million, up 87 per cent from last year. Foreigners will account for 3.3 million, or 70.21 per cent, down 6 per cent from pre-tsunami 2004 but a whopping 150-per-cent jump from last year. The number of Thais, meanwhile, is expected to increase 18 per cent by the end of this year.

To maintain the same growth rate, K-Research advised businesses in Phuket to adjust their strategies by forging strategic alliances with counterparts in Krabi and Phang Nga provinces, and even as far away as Cha-am in Phetchaburi, in order to devise new tour packages. It also suggests a focus on niche markets like seminars and film production.

Phuket has 500 hotels and resorts offering a total of 30,000 rooms. These are the largest contributors to the province's economy, at Bt16 billion, or 16 per cent. Other revenue sources are souvenir shops at 20 per cent, food and catering 18 per cent, transport 11 per cent and services 10 per cent.

The research centre said that in order to attract a targeted 5.2 million visitors next year, Phuket must address its problems, particularly protecting its natural resources and intricate ecosystem from further damage. A lack of regulation in businesses such as diving operations may also get out of hand.