Household debt top worry for domestic tourism sector, study finds
Household debt is the factor that entrepreneurs in the tourism sector are most concerned about, fearing it will have the greatest impact on Thailand's tourism industry in 2024, a study has found.
The Business Confidence Index of Thai Tourism Entrepreneurs, Quarter 1/2024, was compiled by the Tourism Council of Thailand (TCT), the Tourism Authority of Thailand (TAT), and the Faculty of Fine and Applied Arts at the Rajamangala University of Technology Srivijaya.
Secondary concerns are rising energy costs, the domestic economic situation, and income that is not related to the cost of living.
The report highlights the issue of non-performing loans (NPLs) as an internal risk factor that is expected to have an impact on tourism in the second quarter of 2024, especially as signs of NPL acceleration have emerged.
TAT governor Thapanee Kiatphaibool said her agency is still moving towards its goal for 2024, pushing Thai tourists to reach 200 million trips and generating domestic-market revenue of 1.2 trillion baht.
"Despite economic impacts and high levels of debt among Thais affecting purchasing power, it is assessed that Thais still continue to travel, focusing on frequent trips and adjusting behaviour to spend more prudently,” she said.
This corresponds to the Confidence Index, which reveals the findings of a survey of opinions from individuals with incomes exceeding 10,000 baht, totalling 450 people nationwide, distributed across gender, regions, occupations, and income.
It specifies the "travel behaviour and spending habits of Thai tourists" in the first quarter of 2024, indicating that the average expenditure on inter-provincial travel (excluding transportation costs) is 6,856 baht per person per trip, higher than the fourth quarter of 2023, which stood at 4,293 baht per person per trip.
Among the top factors influencing accommodation choices, affordable prices ranked first, with more than 79% of respondents indicating this preference. Moreover, the majority, around 97% of Thai tourists, prefer hotels that provide breakfast service.
In terms of accommodation price ranges, it was found that 1,001-2,000 baht is the most popular, with 62% of respondents favouring it. Following closely, 24% prefer the price range of 501-1,000 baht.
More than 87% believe that there should be free buses, electric train services from Bangkok, Phuket, Chiang Mai, and Songkhla to tourist destinations in adjacent provinces in order to distribute income and the number of tourists, prevent the problem of over-tourism, and ensure the sustainability of tourism resources.
A total of 80% expressed a desire for the "We Travel Together" and "Co-Payment Scheme" programmes to be reintroduced, while 73% would like to see an increase in the frequency of trade fairs held in major tourist provinces.
Additionally, 61% would like to see larger-scale events or festivals in the tourism sector during the school-break periods in Asian countries to stimulate more travel.
While 48% are interested in expanding man-made attractions by promoting or providing incentives to private sector investors, 44% would like to have duty-free shopping areas outside of airports in Phuket and Bangkok to elevate Thailand as a global shopping destination and attract high-spending tourists to visit Thailand more frequently.
