The killer, Arak Kaisub, 38, who had been selling hammocks on Patong beach for three years, fled to a Phuket City hotel where policxe arrested him.
THe man he knifed, shoe repairman Kammonchai Suwaninn, 36, died in Vachira Phuket Hospital after being stabbed around midnight near the men's apartments in Vichitsongkran Road, Phuket City.
The two men had a history of animosity towards each other, said investigating officers from Tungthong Police Station.
The dead man would often bad-mouth his neighbor, but he usually did so when holding a gun. Last night he did not have his gun and was stabbed five or six times by his unhappy neighbor, police said.
Khun Arak fled and was arrested later in the night at the Pub Inn hotel in Phuket City. He is being held without bail.
Both men are from other parts of Thailand, Khun Arak from Nonthaburi and the dead man from Nakhon Si Thammarat.