Stephen Ashton, 23, was shot in the side by a stray bullet as he and his friends celebrated the first day of 2013 on the island at about 5am. He succumbed to his injuries at a hospital.
Police have arrested Ekkaphan Kaewkla on charges of murder and being in possession of a gun. The suspect allegedly confessed that he fired his homemade gun killing Ashton accidentally, as he defended himself when a group of Thai men fired at him and his group.
Surat Thani Governor Chatpong Chataraputi chaired the meeting, putting forward the proposal that guns be banned from the island.
Ashton was the seventh Briton killed in Thailand since 2009.