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Island to compete for foreign investors

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The idyllic island of Koh Samui, south of Bangkok in the Gulf of Thailand, has long been a haven for backpackers, but in recent years ultra-luxurious hotel complexes have given it a much higher profile.

The increase in profile and demand from a more affluent sector of society has led to the opening of the island to property developers for high-end residential projects.

This 'opening' of the island has led to significant upgrades of its international airport - hosting five direct flights a week from Hong Kong - and there is also about to be a long-awaited boost from central government budgets for further infrastructure projects.

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Real Samui's director Matthew Smith said most signs indicated that Koh Samui would soon be competing with its more established rivals for foreign investment.

'Koh Samui has recently achieved the required number of Thai registered residents needed to attain 'city status',' Mr Smith said. The benchmark for city status is 50,000 residents. That meant that the area would soon receive its own budget directly from Bangkok, instead of relying on a small percentage of the budget of the Surat Thani province, he added.

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The budget changes each year as it is calculated by a population head count, but when Samui gets its city status the budget is expected to increase by at least 50 per cent.

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