Floods impact Thai tourism, but recovery plans emerge

Though flooding in the North and Northeast has dealt a significant blow to tourism, some agencies have devised plans to stimulate the industry during the last three months of the year.

Pakakrong Tapparak, a lecturer at the Rajamangala University of Technology Srivijaya’s Faculty of Liberal Arts, said on Thursday that the tourism confidence index for the third quarter (July-September) had dropped to 68.

This decline in confidence can be attributed to the low season, flooding, economic slowdown, inflation and a drop in purchasing power, she said. However, she said, she expects the confidence index to rise to 80 in the fourth quarter, compared to 77 in the same period last year, thanks to the return of tourists in the high season.

She reckons the tourism industry will benefit from the cooler weather in the North and Northeast, travellers on long vacations and festivals like the Chinese National Day, the Vegetarian Festival, Loy Krathong and Christmas and New Year. Pakakrong has also noted an increase in flight and hotel bookings for the latter part of the year.

Not fully recovered

However, she said, most tourism businesses (82%) have not yet witnessed a recovery in their earnings compared to the pre-pandemic levels. Additionally, 54% of hotel operators are still earning far less than they did in 2019, she said.

Pakakrong also said that 95% of people wanted the government to reduce the price of water and electricity as well as fuel and cooking gas, while 80% are in favour of the government granting interest-free loans of 10,000 baht per person. Furthermore, 60% support the “Khon La Khrueng” (Let’s Go Halves) co-payment scheme introduced by the last government.

She reckons 35.49 million foreigners will visit Thailand this year, down 11.08% from 2019. The tourism sector is projected to generate 1.80 trillion baht in revenue this year, down 5.72% compared to pre-pandemic levels.

Co-payment schemes

The Tourism Council of Thailand (TCT) has urged the government to launch a tourism co-payment scheme to stimulate the sector in the wake of the flood crisis. TCT president Chamnan Srisawat said the floods have caused at least 500 million baht in damage to tourism, and suggested that the government allocate up to 5 billion baht to provide a subsidy of 2,000 baht per person per day for three-four-night trips.

Chamnan warned that without a co-payment scheme, the Tourism Authority of Thailand (TAT) will miss its target of generating 900 billion baht from domestic tourism this year. He added that TCT will propose this guideline to the TAT board. Additionally, he said, TCT will advocate the establishment of a committee focused on tourism product development in terms of safety, sustainability and storytelling, and that Thailand could also host specific events to attract tourists.

Chamnan expects the Thai tourism industry to generate about 2.8 trillion baht from some 36.5 million foreign tourists this year, which he reckons will rise to 3.1 trillion baht from up to 40 million tourists next year.

North as MICE hub

Chiruit Isarangkun Na Ayuthaya, president of the Thailand Convention and Exhibition Bureau (TCEB), said the bureau plans to refurbish event venues in Chiang Mai and Chiang Rai once the floods recede.

He said many hotels in both provinces needed a big clean, so they can be ready for the many events scheduled for the last three months of the year.

“TCEB is revising a plan to offer privileges to local and foreign entrepreneurs to host events in these areas,” he said.

Chiruit added that the bureau has discussed with associations related to MICE (meetings, incentives, conventions and exhibitions) in Chiang Mai as well as Northern Thai Hotels Association on the rehabilitation of venues to be ready for events in the last three months.