Four major tourism segments in focus as TAT focuses on niche markets
Agency banks on spending power of wealthy millennials from Asia
Thailand’s tourism product development plan for 2025 will prioritise niche markets, focusing on four major segments: wellness, luxury experiences, sports tourism, and romance or honeymoon tourism, according to a senior Tourism Authority of Thailand (TAT) official.
The global niche market was valued at 31 billion baht in 2019 and is projected to grow to 390 billion baht by 2027, driven by affluent millennials in Asia, including China, Malaysia, Hong Kong, and India, Jirawadee Khunsap, deputy governor for products and tourism business at TAT, said.
Luxury tourism in Thailand continues to grow steadily. In 2023, the market was valued at approximately 60-70 billion baht, with TAT projecting annual growth of 8-10% in 2024.
From January to September 2024, luxury tourists primarily visited Bangkok, Phuket, Chonburi (Pattaya), Krabi, and Surat Thani (Koh Samui). Their average expenditure was 77,693 baht per person per trip (6,171 baht per day) with an average stay of 9-10 days.
Thailand’s luxury hotel and resort sector now offers premium to ultra-luxury services, with an increasing presence of global hotel chains. Meanwhile, 4-5 star hotels have raised prices by 20-30%, reflecting strong demand and contributing to increased revenue from the luxury market.
"For short-term plans [1-3 years], the TAT aims to promote niche and luxury tourism through exclusive events, inspired by Singapore’s model of hosting world-class events exclusively in one country. The Thailand Convention and Exhibition Bureau has been tasked with assessing the feasibility of such initiatives, which could attract high-spending tourists through concerts, music events, and global sports competitions," Jirawadee revealed.
Recent examples include “Hoka Chiang Mai Trail Run” a major event with over 7,000 runners (70% international), generating over 800 million baht, and Amazing Thailand Marathon with over 33,000 participants (30% international).
The Ministry of Tourism plans to attract global sponsors to draw more international participants to such events.
Additionally, TAT will promote international music festivals, global conferences, luxury sports (eg, yacht racing), and fashion shows. Partnerships with luxury brands across industries such as fashion, spas, and hotels will create unique, memorable experiences for high-end tourists.
The focus will also be on high-potential markets such as China, the US, and the Middle East, tailoring products to meet the preferences of these target groups.
The trend for 2025 is active holidays, combining travel with wellness and physical activities. Hotels offering wellness facilities and sports tourism, coupled with sustainable and environmentally friendly practices, are expected to gain even more appeal among international tourists.
Traditional festivals, such as New Year’s countdowns, Chinese New Year, and Songkran, will continue to be celebrated on a grand scale. The TAT aims to incorporate innovation into these events to align with international tourists’ interests.
