Thailand tourism predicted to decline next year

30th Nov 2022

According to the Tourist Authority of Thailand, the second quarter of 2019 might be difficult for the tourism industry due to a lack of pent-up demand. This year's pent-up demand fueled the market (TAT).

The Bangkok Post reports that the TAT is preparing to hold a special event titled "Amazing Thailand 10 Million Celebrations" on December 10 at every port of entry, as the number of visitors is expected to reach 10 million on that day, ahead of the prediction that it would be reached by the end of the year.

The governor of the Tourism Authority of Thailand (TAT), Yuthasak Supasorn, cautioned the sector against relying on this figure, since the current demand is dominated by visitors who have been unable to travel for two to three years.

He said that wealthy, in-demand visitors have already travelled this winter and would continue to do so until March.

"We might have to wait until the next low season to see how Thai tourism can cope with negative factors like the recession, high travel costs, and inflation, as there will be no more drivers like pent-up demand," Mr. Yuthasak added.

Also, the estimated total income for this year, B1.3trn, is less than the goal of B1.5trn set at the beginning of the year. This shows that economic worries and high spending have made both international and local visitors spend less.

If the nation reaps the benefits of government programmes, notably the extension of stay to 45 days for visitors from countries or territories qualifying for visa exemption, which expires in March 2023, he said revenues of more than B1.3trn are still attainable.

The average amount that foreign visitors spent was B60,000, but this could go up to B77,000 if they stayed longer.

Mr. Yuthasak said that European travellers most likely took advantage of the extended stay privilege, since several hotels in Phuket reported that their rooms were overbooked owing to the flood of European customers seeking longer stays.

The TAT has set a revenue goal of B2.38 trillion for next year from both foreign and local markets.

However, Chinese travellers will not be included in the 20 million objective since the situation on the mainland remains unstable and there is no indication of when or how travel restrictions will be removed.

"The best thing we can do for the Chinese market is to maintain a favourable image of Thailand and wait until Chinese tourists are permitted to visit. For the time being, we must accelerate other markets to compensate for the absence of Chinese markets", he stated.

Mr. Yuthasak said that while President Xi Jinping's formal visit to Thailand did not result in a pledge to resume travel between the two nations, TAT offices in China reported that over 43,000 internet postings mentioning his visit reached at least one billion people in mainland China.

The majority of responses indicated a desire to revisit Thailand once international travel is authorised.

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