One of the most astounding examples of a destination that has gone upscale is Koh Nang Yuan in Surat Thani Province. This small island (looks like three rocks connected by sand barriers that barely exist at high tide) is located a stone-throw from Koh Tao.
Koh Tao used to be a destination for backpackers, then for dive enthusiasts, but now the island has more and more spas and resorts that cater for families. However, in terms of going up-scale, the resort on the privately owned Koh Nang Yuan takes the price.
The marketing concept for Koh Nang Yuan used to be similar to Koh Kood – target weekend visitors from Bangkok – and rustic bungalows (with great views) would cost 800-1,500 baht per night. Today, the island is home to a “dive resort” with luxurious bungalows costing 2,500-7,5000 baht per night.
Despite these to me scary prices, I must admit that this small island is extremely beautiful and a must-see.
My recommendation is to avoid tour operators and do a bit of footwork yourself. Take the night train down to Chumphon and catch a song-taew taxi to the catamaran ferry to Koh Tao (www.lomprayah.com) or drive your own car to the ferry jetty where ample parking is available.