Is this pocket for a watch?

It's called a "Ticket Pocket", and is/was intended for bus/rail/tram tickets. They are on the right and above the main coat pocket so that a right-handed person could fish out a card or paper ticket. Normally they have a flap as a miniature of the main pocket below.

As paper tickets have dwindled, ticket pockets are not nowadays seen on men's jackets, bespoke or off the peg

They were also handy for keeping small change for fares etc separate from the other junk rattling around in pockets.
 
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