The Phuket Periodical - 0125 - 13.07.2025
The 'Black Tipped Newsletter' Issue
Sawadee Khrub Dear Reader,
This past week, from July 7th to July 12th, has seen Thailand navigate a complex tapestry of national political shifts, significant economic challenges, and is still dealing with the dramatic policy reversal on cannabis. Here in Phuket, these broader currents have converged with local developments, from enhanced security measures and environmental warnings to vibrant community events. The island continues to adapt, demonstrating its resilience amidst evolving circumstances.... On with the news.
PM Suspension Update & Caretaker Government
The Constitutional Court's suspension of Prime Minister Paetongtarn Shinawatra on July 1st, pending an ethics investigation, continues to dominate national headlines. Ms. Shinawatra has been granted 15 days to submit her defense to the court, a period that is still active as of this week.
In a swift succession of leadership changes, Interior Minister Phumtham Wechayachai was appointed as the new caretaker Prime Minister on July 3rd, replacing Deputy Prime Minister Suriya Juangroongruangkit, who had held the interim role for just one day. Notably, Ms. Shinawatra herself was appointed as the Minister of Culture in this new cabinet, allowing her to retain a position within the government despite her suspension from the premiership. This rapid transition and the characterisation of the new cabinet as "lame-duck" by some observers underscore the deep instability gripping the administration.While major street protests or military coups are not immediately expected, public discontent is evident, and the ongoing political uncertainty could deter foreign investment and delay crucial economic initiatives.
US-Thailand Trade Tariffs: The August 1st Deadline Looms
On July 7th, the United States announced a significant 36% tariff on all goods imported from Thailand and Cambodia, set to take effect on August 1st. This decision follows months of negotiations during which Thailand attempted to avert the measure. The 36% rate is notably higher than those imposed on regional competitors like Vietnam (20%) and Malaysia (25%).
However, there's a glimmer of hope: on July 12th, Foreign Minister Maris Sangiampongsa indicated that the US remains open to renegotiating the 36% tariff even after the August 1st deadline, following discussions with US Secretary of State Marco Rubio. Thailand had previously proposed a second round of negotiations on July 6th, offering zero tariffs on certain agricultural products and increasing imports of US liquefied natural gas (LNG) and Boeing aircraft to reduce its trade surplus. This tariff is projected to potentially reduce Thailand's GDP by 1% and significantly impact key export sectors, including electronics, machinery, automotive parts, rubber products, and processed food.
"Half-Half Thai Travel" Stimulus: A Domestic Lifeline
The government's "Half-Half Thai Travel" project, aimed at boosting domestic tourism, officially opened for public registration on July 1st. Despite an initial system crash on June 24th and subsequent bottlenecks and OTP delays on July 1st, over 5.9 million people signed up, demonstrating immense public interest.The Tourism Authority of Thailand (TAT) swiftly responded by modifying the system flow to address these issues.
A total of 500,000 entitlements are available, offering eligible Thai nationals up to five subsidies for accommodation and a 500 baht e-coupon per entitlement for other travel expenses, valid from July 4th to October 31st. Phuket is categorized as a "major city" within this scheme, poised to gain significantly from the anticipated increase in domestic travel. TAT anticipates the scheme will generate 35.03 billion baht in economic impact and create over 40,000 jobs.
Broader Tourism Outlook: Navigating the Numbers
Thailand's tourism sector experienced a 4.66% decline in international tourist arrivals during the first half of 2025, primarily due to a significant 34.13% drop in Chinese visitor numbers. Conversely, domestic tourism remains robust, with 22.9 million Thai travellers recorded in May 2025. In response, TAT is implementing strategic initiatives, including a "Nihao Month" campaign targeting the Chinese market and a "Trusted Thailand" image-building campaign.
Phuket itself saw a strong start in Q1 2025, attracting over 3.8 million tourists (both domestic and international) and generating 149 billion baht in revenue. The island's long-term tourism strategy emphasizes diversification, with a particular focus on developing Meetings, Incentives, Conferences, and Exhibitions (MICE) and wellness tourism to reduce vulnerability to economic shocks.
Recriminalisation Takes Hold
On June 24th, Thai Health Minister Somsak Thepsuthin signed an order officially ending the era of recreational cannabis, restricting sales strictly to medical prescriptions. This policy reclassifies cannabis buds as a controlled herbal medicine.The government has further announced its intention to reclassify cannabis as a Category 5 narcotic within 45 days, effectively reversing the 2022 decriminalization. Violations of the new rules can result in penalties of up to one year in prison or a 20,000 baht fine, and public smoking remains prohibited.
Over 18,000 dispensaries nationwide must now comply with these new regulations, with an estimated 12,000 facing potential closure as their licenses expire and new rules requiring specific medical professionals on-site take effect. Public hearings on these new draft ministerial regulations concluded on July 12th.
Industry Protests & Phuket's Dilemma
Cannabis reform advocates, organised under the "Writing Thailand's Cannabis Future Network," staged a mass rally at the Ministry of Public Health on July 7th. They argue that the recriminalisation efforts are politically motivated, coming just days after the pro-cannabis Bhumjaithai Party withdrew from the ruling coalition. The network has pledged ongoing action until a comprehensive Cannabis Act is officially tabled and passed by Parliament.
Phuket, home to nearly 1,500 cannabis outlets, is particularly vulnerable to these changes. Tourism operators have expressed concerns that foreign travel agents are already warning family tourists about Thailand's growing association with cannabis, a perception they fear could take years to undo. Despite the national policy shift, some Phuket cannabis businesses, like King Kush Patong, assert that "nothing has changed" on the ground and continue to operate without prescriptions, hoping for another policy backtrack. However, authorities have begun inspections in Bangkok, indicating that compliance is expected to tighten across the country.
Marine & Beach Safety: Warnings from the Waves
Karon Beach has recently seen multiple drowning incidents due to dangerous rip currents, particularly strong during the monsoon season (May to October).On June 28th, a 34-year-old Japanese man drowned, becoming the third victim at Karon Beach in just 18 days, following a 41-year-old Albanian woman on June 10th. Authorities have increased patrols and updated signage to warn tourists.
Adding to marine safety concerns, sightings of the highly venomous "Blue Dragon" sea slug (Glaucus atlanticus) were reported on Phuket's Karon Beach on July 11th. Tourists and locals are urged not to touch these beautiful yet potentially fatal creatures, which can deliver a potent sting.
Conservation Wins
Despite the heavy news, life on the island continues with a variety of events and activities. A positive development for marine conservation was reported during a survey from July 2nd to 8th, which recorded a remarkable sighting of 158 blacktip reef sharks in Maya Bay, Krabi province – the highest number seen at one time in the bay. This is an encouraging sign for Maya Bay, which serves as a model for marine conservation.
Further Reading
A round of other great stories (some by us from around the kingdom):
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