Koh Tao: Building a 10-Billion Baht Economy as the World’s Diving School /By Longtunman
Did you know? Koh Tao in Surat Thani Province is one of the largest producers of new divers and diving instructors in Asia, and ranks among the top in the world.
Each year, this island produces 50,000 new divers and 200 instructors, welcoming over 300,000 divers in total. There are more than 60 diving schools established here, despite the fact that Koh Tao covers an area of only 21 square kilometers.
Even though Thailand's overall tourism situation hasn't fully returned to its golden era, that is not the case for Koh Tao. Currently, the number of tourists has already surpassed pre-COVID-19 levels.
In 2025, it is predicted that visitor numbers will reach as high as 700,000 people—an all-time record. Meanwhile, tourism revenue has already climbed above 10 billion baht.
What makes Koh Tao so interesting?
Longtunman will tell you the story.
When speaking of Koh Tao, it’s impossible not to think of Koh Samui and Koh Phangan. All three are islands in Surat Thani that generate a massive amount of revenue for Thai tourism every year.
The interesting thing is that Koh Samui has a history dating back over 1,200 years, starting as a settlement for fishermen and merchants. Koh Phangan also shows traces of sea tribes living there for over 2,000 years.
In contrast, the diver’s paradise we know as Koh Tao was once just a deserted island.
It wasn't until 1943 that the island was turned into a political prison for prisoners of the Boworadet Rebellion, who were relocated from Koh Tarutao in Satun Province. This was the first time people truly came to live on Koh Tao.
However, life was incredibly difficult due to food shortages and outbreaks of malaria. After just one year, the prisoners were released, the people returned to the mainland, and the island became deserted once again.
In 1947, twin brothers from Koh Phangan, Ta Oh and Ta Euam, sailed to Koh Tao. Upon arrival, they began clearing the land and used the remains of the old prison to build temporary huts for shelter.
Later on, they brought their families to settle at the northern end of Sairee Beach.
Once these pioneers paved the way, people from Koh Phangan and Koh Samui gradually migrated to start new lives in areas like Sairee, Mae Haad, and Chalok Baan Kao. They survived through fishing, rice farming, and coconut plantations, selling their produce back to the mainland.
In that era, the mountain land in the center of the island used for planting coconuts was considered much more valuable than the land near the beach.
This changed when the first groups of foreign tourists arrived and discovered that the island possessed breathtaking natural beauty.
As word spread, people began to pour in. The once "worthless" beachfront property skyrocketed in value, and the first bungalows and resorts began to appear.
From then on, Koh Tao shifted from fishing and farming toward tourism, which grew in popularity rapidly. It was during this period that the diving industry on Koh Tao truly began.
Divers from Koh Samui started exploring the deep waters around Koh Tao and found that many dive sites were filled with pristine nature, abundant marine life, and diverse ecosystems.
Realizing the potential, many decided to open diving schools.
One of the first was Big Blue Diving, founded in 1991 by Mr. Michael Spjuth, a Swedish tourist who fell in love with Koh Tao’s waters. They focused on basic courses, such as the Open Water Certification, to meet the demand of people wanting to explore the underwater world.
As Koh Tao's reputation as a diving destination grew, more diving businesses and resorts sprouted up across the island.
The industry then expanded at lightning speed because the courses were offered at various levels, and the dive sites catered to both beginners and professionals. The waters were also rich with marine resources like whale sharks and sea turtles.
Crucially, the cost of these courses was nearly half the price of many diving schools around the world, making it a huge magnet for divers.
The growth of this industry drove Koh Tao’s economy to a new level.
Completing just one diving course takes at least 3 to 7 days. This results in much higher spending on accommodation, food, and transportation compared to other forms of tourism that don't require such a time commitment.
Consequently, Koh Tao—which once had electricity for only 4 hours a day and just one telephone line—transformed rapidly. Within a few years, the island had ATMs, 24-hour electricity and water, internet, pharmacies, and luxury resorts.
However, what truly cemented Koh Tao as a destination for ocean lovers was the 2004 Tsunami. The disaster led many tourists who used to visit the Andaman side to switch their plans to Koh Samui, Koh Phangan, and Koh Tao instead, making the island busier than ever for many years.
Then, in 2020, the COVID-19 pandemic hit, and tourism stopped instantly. Koh Tao was no exception, and many businesses had to close down.
But in that silence, nature fully recovered. Blacktip reef sharks were spotted near Sairee Beach, and stingrays, sea turtles, and many bird species returned to inhabit the island in abundance.
When the situation eased, Koh Tao returned to being one of the most popular destinations in the world for learning to dive once again.
The convenience of travel, reasonable prices, and the credibility of its diving education continue to attract hundreds of thousands of divers every year.
The story of Koh Tao reflects a simple truth:
“Valuable resources” don’t necessarily have to start with greatness; they start with being discovered and developed in the right way.
In the end, Koh Tao’s 10-billion-baht economy may not just come from a beautiful sea, but from the ability to turn nature into a business opportunity.
And it has successfully turned that opportunity from a deserted island in the past into the “Diving School of the World” today.
Fun fact to wrap up: Koh Tao is one of the few places on Earth where you can dive 365 days a year—or quite simply, all year round.