Thailand's man-made destinations: A new frontier for tourism

Krungthai Compass Research Centre has identified a growing trend in global tourism: the increasing popularity of man-made destinations, according to its recent study released on Wednesday.

The report found that as travellers seek unique and immersive experiences, these artificial attractions are emerging as a key driver of the tourism industry. 

Thailand, with its rich cultural heritage and stunning natural beauty, is poised to capitalise on this trend.

Supree Srisamran, director of Business Risk and Macro Research at Krung Thai Bank (KTB), noted that Thailand’s tourism industry continues to thrive, with domestic tourist numbers reaching 199.5 million in the first nine months of 2024, surpassing pre-Covid-19 levels by 121%. 

Foreign arrivals have also increased to 26.1 million, approximately 88% of the pre-pandemic figures. However, the recovery pace remains slower compared to regions like the Middle East, where Qatar saw a remarkable surge in tourism following the 2022 World Cup, with foreign visitors increasing more than threefold compared to before the pandemic.

In 2024, Thailand anticipates about 35.7 million domestic tourists visiting man-made attractions, representing 17.9% of all local tourists. This includes approximately 22.2 million attending conventions and exhibitions, alongside 4.3 million for festive tourism and 9.2 million for amusement parks. 

Meanwhile, around 2.4 million foreign tourists are expected to engage in man-made tourism, 7% of the total foreign arrivals, indicating significant potential for growth in this sector.

Chamadanai Marknual, also a director of Business Risk and Macro Research at Krung Thai Bank, highlighted that man-made tourism aligns with the current trend of diverse experiences, including traditional activities, entertainment, and global conventions. By offering these attractions to foreign visitors, Thailand can enhance its tourist demographic.

Looking ahead, Krungthai Compass estimates that the man-made tourism market could expand to 3.1 million foreign tourists by 2025, roughly 2.5 times the number in 2022, with contributions from MICE (Meetings, Incentives, Conventions, and Exhibitions) participants, amusement park visitors, and those attending festivals. 

The projected average expenditure per “man-made” tourist is 58,300 baht per person per trip, significantly higher than other tourist segments, contributing 0.9% to GDP.

Krittrin Laorit, an analyst at Krungthai Compass, pointed to successful international examples demonstrating the economic potential of man-made destinations. The Shanghai Disneyland project, for instance, received an investment of roughly 210 billion baht and generates 50 billion baht annually. 

Similarly, the Qatar 2022 Fifa World Cup, with an investment of 490 billion baht, yielded around 68 billion baht in revenue during the event and contributed to long-term benefits through infrastructure development and enhanced global image.

Given these insights, Thailand has significant opportunities to harness man-made tourism for additional national income, particularly with innovative attractions and world-class mega-events. 

It is essential for entrepreneurs to understand the diverse preferences of man-made tourists, especially younger generations such as Gen Z and Gen Y, who are increasingly drawn to unique, cross-cultural experiences that will shape the future of tourism.