"Thousands of Russians are fleeing to Thailand to escape the war."."

Bangkok, Thailand - Russian tourists are flocking to Thailand to escape the war in Ukraine or seeking opportunities to resettle in Southeast Asia. Thailand has become a refuge for Russian visitors who want to get away from Moscow's war in Ukraine, which has been ongoing for the second year now. Visitors are in Thailand, but they are also fleeing from Russia. According to government data, since October, when Thailand fully opened its borders and lifted restrictions, Russian arrivals make up the third largest group of visitors, trailing only behind Malaysia and India.

Thousands of Russians are now seeking new homes, fearing economic problems in Russia and conscription due to the Kremlin's war in Ukraine. Thailand has long been a popular destination for holidaymakers from Russia. Thailand and Russia are close trading partners, and in2019 Russia was the seventh largest market for tourism in Thailand. Thailand did not follow the example of Western countries and did not ban Russian visitors. Russian tourists took advantage of this. According to the Ministry of Sports and Tourism of Thailand, more than331,000 Russian tourists arrived in Thailand in October, November, and December. Thousands of them also invest, buy property, or rent long-term in Thailand.

Russian President Vladimir Putin announced mobilization for war in September, so for many wealthy Russians, the sunny beaches of Thailand are an easy alternative to the prospect of being drafted into service in Ukraine. All male Russian citizens aged18 to27 are subject to one year of active military service in the armed forces. Russia has stated that it has called up at least200,000 citizens to its armed forces since Putin declared partial mobilization in September.

The real estate market in Thailand

Amin Ettaeb is a sales manager from Moscow at InDreamsPhuket, a real estateagency on the Thai island of Phuket. "More than 90% [of our clients] are Russian. In November, when there was a peak in attendance, people were buying everything," he told VOA. The family-run real estateagency has noticed a 10% increase in purchases since November. Ettaeb said that in the rental market, villas that used to be rented for less than $9,000 a month are now being rented for over $28,000. "The rental market is absolutely chaotic right now," Ettaeb said. "Villas used to cost 300,000 baht a month, some of them now cost 1 million baht a month, but people are still renting them."

Despite the fact that money is not an issue for some, Ettaeb said that not all of his clients want to stay in Thailand for a long time. "Many people do not want to leave Russia forever; they just want to make sure they won't have to go to war," Ettaeb said. "When everything returns to normal, they are likely to come back."

The real estate market in Phuket

Russian tourists are vacationing in Phuket, Thailand, on December 25, 2022. From November 1 to January 21, over 233,000 Russian tourists arrived in Phuket, according to data from Phuket International Airport. Last year, Russians purchased nearly 40% of all apartments sold to foreigners in Phuket, reports the Thai Real Estate Information Center, according to Al Jazeera.

Emil Saliani, originally from Ukraine, has been living in Thailand for several years.

“Sales in the Russian market are just insane right now. In November, December, and January, it was a super high season; they sold more than in the last 10 years. The 'military market' is crazy, and prices are rising by 15-20% in sales. Rental prices have increased, with some prices going up three or four times.”

“It’s like a wild exchange.” A year ago, thousands of Russian tourists found themselves stranded in Thailand after the US and other Western countries imposed sanctions on Russia. The suspension of Visa and MasterCard credit cards and the exclusion of Russian banks from the SWIFT financial network meant that Russians had no access to funds as the Russian ruble collapsed. Russia is still facing harsh sanctions due to the war in Ukraine.

“The reason for the investments is the desire to take money out of Russia,” said Saliani. “It’s a bad situation. They are worried about the currency.” The real estate market in Phuket is so saturated that illegal agents have emerged trying to make money, Saliani noted. “Now anyone can be a real estate or rental agent and charge a hundred times more,” he said. “It’s incredible, it’s like a wild stock exchange that no one can control.”

Local media in Thailand report that some Russian visitors are also illegally working as guides and taxi drivers in Phuket. In a Facebook post this month, Bhummikitti Ruktaengam, the former president of the Phuket Tourism Association, urged officials to investigate the illegal employment of Russians in Thailand.

Russians on Koh Phangan

Russians are flocking to Koh Phangan. Since Thailand opened its borders, Koh Phangan has also become popular among Russian tourists trying to escape the war. Kimberly Baka, a life coach from South Africa living on the island, said that there has been a "takeover" in recent months. In addition to the famous monthly Full Moon beach parties, Koh Phangan is popular among visitors who enjoy the travel community on the island and the affordable prices. The sharp rise in rental prices is causing people to leave, Baka said.

“We tried to book a place in 30 different locations, most of which were booked for a year,” said Baka. “We requested information about four houses, the usual cost is around 12,000 baht [$345] per month for each. One Russian woman rented all four for a whole year and charges 1,300 baht [$37] per day, which amounts to about 40,000 baht [$1,150] per month [for each house].”

“Thais are struggling to get a good deal,” said Baka. “Many people who have lived on Koh Phangan for several years are leaving.”