A NATIONAL Government economics expert has suggested that Phuket should impose a special tax on tourists to gain the money to fund essential infrastructure.

Among the items the island needs but cannot afford is a fast-rail service from the airport, the Governor revealed.

The suggestion of a tax on tourists came from Dr Pisit Leeahtam, the chairman of the Foreign Affairs Ministry's Committee on Macroeconomics.

He held talks on August 11 with the Governor, the Tourism Authority of Thailand and business organisations while on a visit to Phuket to determine how best to solve the province's chronic inability to keep pace with development.

He said that rather than wait for the budget for growth from the national government, which had other financial priorities, Phuket should act to generate its own income.

A tax of one or two percent could be imposed on retail activities. Taxing the tourists was another alternative, he said.

''The tourists who come to Phuket have enough money to pay a tax,'' Dr Pisit told the Governor, Niran Kalayanamit, and the other officials at the meeting at the Provincial Administration conference meeting room.

More wealthy visitors were coming in greater numbers and Phuket needed good infrastructure and security, he said.



The Governor said Phuket's problems were long-standing. The current annual budget of 150 million baht from the national government was not enough, he said.

Khun Niran added that he would like a fast-rail service to operate from the airport to Phuket City but the cost was too great.

Phuket was not given enough by Bangkok to proceed with that essential project, he said.

The Chairman of Business Tourism of Phuket, Phurit Maswongsa, told the meeting that Phuket did not have a realistic income based on the annual total of five million tourists, or the thousands of workers who came from other provinces to find jobs in tourism.

Phuket's income was based on just 320,000 registered citizens when the actual population of Thais alone was at least twice that number.

No allowance at all was made for the visiting tourists, who conrtibuted a huge amount to Thailand's national GDP.

He estimated that in any month during the high season, Phuket's population was more than a million people, yet the budget was for just one third that number.

Other sources have said that Phuket also supports an extra 100,000 legal and illegal migrant laborers, mostly from Burma.

The TAT says Phuket and tourism delivered 90 billion baht to Thailand's national coffers in 2007 alone.

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