Starting a Business in Phuket: 5 Most Profitable Ideas for Foreigners in 2024

Author: Arturas Vorobjovas

May 9, 2025

Phuket isn’t just a tropical paradise—it’s a thriving business hub with endless opportunities for savvy entrepreneurs. With millions of tourists, a growing expat community, and a relatively low cost of doing business, the island is a goldmine for foreign investors who know where to look.

But before you quit your job and open a beach bar (tempting, we know), let’s explore the five most profitable business ideas for foreigners in Phuket—backed by real demand, legal feasibility, and solid profit potential.

1. Boutique Hotel or Vacation Rental Business

Why It Works:

Phuket welcomes over 10 million tourists annually, and many prefer private villas or boutique stays over big resorts.
Platforms like Airbnb, Booking.com, and Agoda make it easy to market properties globally.
High ROI—luxury villas can charge $200–$1,000+ per night in peak season.

How to Start:

✔ Buy or lease a property in high-demand areas (Patong, Kamala, Kata, or Rawai).
✔ Get the proper hotel license (if renting out daily) or register as a legal rental business.
✔ Hire a local property manager for maintenance and guest services.

Potential Pitfalls:

Strict regulations—Thailand requires licenses for short-term rentals (under 30 days).
Seasonal income—monsoon season (May–October) sees fewer tourists.

Best For: Investors who want passive income with high returns.

2. Restaurant or Café (With a Twist)

Why It Works:

Tourists and expats always need food—especially unique, Instagrammable spots.
Low startup costs compared to Western countries.
Healthy food, vegan cafes, and specialty coffee are booming trends.

Profitable Niche Ideas:

Beachfront seafood bar (fresh catches + sunset views = $$$).
Digital nomad café (strong Wi-Fi, coworking spaces, and cold brew).
Fusion cuisine (think: Thai-Italian, sushi burritos—Phuket loves creativity).

How to Start:

✔ Find a busy location (near beaches, expat hubs, or tourist streets).
✔ Partner with a Thai nominee (foreigners can’t own 100% of a restaurant).
✔ Market aggressively on Instagram & Google Maps (food pics sell themselves).

Potential Pitfalls:

Competition is fierce—you’ll need a unique angle.
Staff turnover can be high in the hospitality industry.

Best For: Foodies who understand tourism trends and marketing.

3. Tour & Activity Company

Why It Works:

Tourists crave experiences—island hopping, scuba diving, jungle treks, and ethical elephant encounters.
High margins (a speedboat tour costs $30/person to run but sells for $100+).
Repeat business from travel agencies and online bookings.

Top Tour Ideas:

Private yacht charters (huge demand from wealthy Russians, Chinese, and Europeans).
Adventure tours (ATV rides, ziplining, or Muay Thai training camps).
Sustainable tourism (eco-tours, marine conservation dives).

How to Start:

✔ Get a tour operator license (requires a Thai partner for majority ownership).
✔ Partner with hotels, travel agents, and influencers for bookings.
✔ List on Klook, Viator, and Airbnb Experiences.

Potential Pitfalls:

Weather-dependent (monsoon season = fewer bookings).
Insurance risks (adventure activities require proper coverage).

Best For: Adventurous entrepreneurs who love the outdoors.

4. Real Estate Agency (For Foreign Buyers)

Why It Works:

Phuket’s property market is hot, with foreigners buying condos, villas, and land leases.
Commission rates are 3–5% per sale (a $500K villa = $15K–$25K profit).
Low overhead—you mostly need connections, not a physical office.

How to Start:

✔ Get a real estate license (requires a Thai business entity).
✔ Build a network of developers, lawyers, and expat clients.
✔ Market on Facebook groups, LinkedIn, and expat forums.

Potential Pitfalls:

Cyclical market—economic downturns can slow sales.
Trust factor—foreign buyers prefer established agencies.

Best For: Sales-savvy individuals with strong networking skills.

5. Wellness & Spa Business

Why It Works:

Phuket is a wellness destination (yoga retreats, detox programs, luxury spas).
High demand from tourists, expats, and digital nomads.
Repeat customers—massages and wellness treatments are regular expenses.

Profitable Models:

Beachfront massage shop (low-cost, high-volume).
Luxury spa (targeting high-end tourists).
Holistic retreat center (yoga, meditation, detox packages).

How to Start:

✔ Rent a visible location (near hotels or busy beaches).
✔ Hire certified therapists (Thai staff are trained and affordable).
✔ Partner with hotels and travel agencies for referrals.

Potential Pitfalls:

Licensing requirements (spas need health & safety permits).
Staff training—quality control is key.

Best For: Entrepreneurs passionate about health & relaxation.

Final Tips for Starting a Business in Phuket

Legal Structure Matters – Most businesses require a Thai majority ownership (51%), unless you use an BOI-promoted company or Thai Elite Visa setup.
Location is Everything – A beachfront café in Patong will outperform a hidden spot in Phuket Town.
Marketing Wins – Instagram, Google My Business, and influencer collabs are essential.
Start Small, Scale Fast – Test your idea with a pop-up or short-term lease before committing long-term.

Conclusion: Is Phuket the Right Place for Your Business?

If you’re looking for a lucrative, lifestyle-friendly business in a tropical setting, Phuket checks all the boxes. Whether you’re renting luxury villas, running a sunset cocktail bar, or organizing private yacht tours, the key is finding a niche, staying legal, and marketing smartly.

So—ready to trade your office job for a Phuket entrepreneur life? The island is waiting. 🚀