Thailand's tourism sector faces watershed moment

 

Thailand's vibrant tourism industry is facing a critical juncture as it grapples with impending European Union (EU) environmental regulations. 

 

With a 2026 deadline looming, businesses across the sector are being urged to adopt sustainable practices rapidly or risk being marginalised on the global stage.

 

The pressure stems from the EU's Corporate Sustainability Due Diligence Directive (CSDDD), which mandates that all businesses operating within the bloc ensure their supply chains adhere to stringent environmental and human-rights standards. 

 

This directive represents a significant shift in global commerce, requiring Thai tourism operators to vet their partnerships with European tour operators, travel agencies, and hotel chains diligently.

 

Failure to comply could result in the loss of lucrative European partnerships, a severe blow to Thailand’s competitive edge. With modern travellers increasingly prioritising sustainability, the message is clear: Thai businesses must adapt or fall behind.

 

 

 

Navigating a Complex Regulatory Landscape

Jutamas Wisansing, an expert in sustainable tourism, emphasises that the industry is navigating a complex regulatory landscape. Six key international agreements are driving this change: the UN Sustainable Development Goals (SDGs), the Paris Agreement, the UNWTO Global Code of Ethics for Tourism, Agenda 21 for Culture, ISO 14001, and the Convention on Biological Diversity (CBD).
 

 

These agreements are crystallising into concrete regulations, particularly within the EU, a crucial market for Thai tourism.

 

By 2026, Thai businesses partnering with EU entities will be required to provide detailed reports and undergo audits under the Corporate Sustainability Reporting Directive (CSRD) and the CSDDD. 

 

These directives demand transparency and accountability, compelling businesses to assess and mitigate their environmental and social impacts.

 

Thapanee Kiatphaibool, governor of the Tourism Authority of Thailand (TAT), stresses the urgency of this transition. 

 

"EU companies must ensure their entire supply chain complies with strict environmental, social and governance (ESG) standards. This means Thai tourism businesses must adopt sustainable practices at every stage to remain partners with EU companies," she said.

 

The TAT has been proactive in supporting this transition, launching initiatives aligned with UN sustainable development principles and strengthening supply chain readiness. 

 

Thapanee Kiatphaibool

 

"Sustainable tourism practices not only meet EU requirements but also create a competitive advantage in the global market," Thapanee added.

 

 

 

Hotels under Scrutiny: 20,000 Face Potential Disruption

The immediate impact is being felt by Thailand's hotel sector, which could face difficulties in competing with their counterparts.

 

They are being pushed towards greater sustainability to comply with the EU's environmental regulations by 2026.

 

 

This comes as certain online platforms, or Online Travel Agents (OTAs) such as Agoda and Booking.com, are required to adhere to the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) under EU regulations.

 

These global platforms are promoting policies that encourage hotels worldwide, which sell rooms on their platforms, to obtain internationally recognized sustainability certifications. Examples include Greenkey, Green Globe, Travelife, EarthCheck, GSTC, and Thailand's own Green Hotel Plus, which has received GSTC-Recognized Standard status.

 

Thai hotels that lack internationally recognized sustainability certifications will not have these certifications displayed on their hotel pages. This represents a missed opportunity to be a preferred choice for eco-conscious travelers. However, it does not yet result in a ban or reduced visibility on OTAs.

 

The Thai Hotels Association (THA) is urging the government to bolster the capacity of the Hotel Plus certification scheme, currently managed by the Department of Climate Change and Environment. 

 

With a current capacity of only 60 certifications per year, a bottleneck is imminent.

 

Thienprasit Chaiyapatranun

 

Thienprasit Chaiyapatranun, president of the THA, highlights the broader implications: "By 2026, the Global Sustainable Tourism Council (GSTC) will ban non-sustainable tourism businesses. Online platforms will only feature certified hotels, starting in Europe."

 

He calls for government support, including financial incentives, to enable hotels to transition to sustainable operations.

 

 

 

Challenges and the Path Forward

Data reveal that only a fraction of Thai hotels have achieved international sustainability certifications, with a concentration in Bangkok and Phuket. Furthermore, greenhouse gas emissions from Thai hotels remain comparatively high.

 

The slow adoption of sustainability standards is attributed to several factors: a lack of understanding of long-term benefits, financial constraints, and insufficient government support.

 

The message is clear: Thai tourism businesses must accelerate their transition to sustainability. Proactive measures are essential to avoid being left behind and to capitalise on the growing demand for sustainable travel. This is a watershed moment for Thailand's tourism sector, one that will define its future on the global stage.