The Patong Municipality Fire Department was informed of the fire at about 8:45am, firefighters told The Phuket News.
A total of 25 firefighters with one fire truck and six water trucks soon arrived to battle the flames, which had spread quickly throughout the U-shaped camp.
Firefighters doused the blaze within about 20 minutes, and prevented the flames from spreading to nearby buildings.
No people were injured in the fire, but all homes in the camp were destroyed, firefighters confirmed.
Patong Mayor Chalermluck Kebsup soon arrived at the camp to inspect the damage.
The cause of the fire has not been confirmed. Officers at this stage do not suspect arson. They currently believe the fire started in one of the homes.
Expert fire investigators have been called to inspect the scene to determine the cause of the fire, The Phuket News was told.