Tourism numbers on track but revenue targets unlikely to be met
Thai Hotels Association expresses concern at the lower level of spending by international tourists compared to 2019
Despite various global economic challenges and declining purchasing power both domestically and internationally, tourism remains a key driver of Thailand’s economy, rebounding to near pre-pandemic levels of 2019 when nearly 40 million foreign tourists generated 2 trillion baht in international revenue.
While Thailand appears on track to meet the government’s target of 36.7 million foreign visitors for this year by the end of 2024, achieving the revenue goal of 2.3 trillion baht is looking increasingly unlikely, especially when ongoing challenges like global conflicts are negatively affecting spending.
According to data from the Ministry of Tourism and Sports, from January 1 to August 25, 2024, Thailand welcomed 23,096,752 foreign tourists whose accumulated spending amounted to approximately 1.08 trillion baht. This means that the government and private sector need to generate an additional 1.2 trillion baht in the last four months.
Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA), raised concerns about the lower spending per tourist compared to 2019, even before the pandemic.
“We estimate that during the high season from Q4 this year to Q1 next year, tourists will continue to spend, but it’s crucial to monitor how the global economy will evolve in 2025 and how it will affect the tourism sector. For instance, the recovery of the Chinese tourist market, our top market, has been slow, with the Chinese government increasingly promoting domestic travel," he noted.
Suphajee Suthumpun, Group CEO of Dusit Thani Public Company Limited, is guardedly optimistic, saying: “From the perspective of the private tourism sector, we hope to see the new government led by Prime Minister Paetongtarn Shinawatra, drive the market towards attracting quality tourists who will stay longer, spend more, and visit Thailand with new and more lucrative purposes. This will help boost tourism revenue growth.”
Boon Sian Chai, managing director and vice president of International Marketing at Trip.com Group, highlighted a notable trend in the global tourism industry driven by the new generation of travellers. For these travellers, and particularly Gen Z, their goal isn’t just reaching a destination, they also seek unique experiences, especially those offered by hotels.
Another trend is the rising popularity of alternative accommodations, such as boutique hotels and vacation rentals. These options are particularly favoured by groups of friends and families, as travellers increasingly seek to experience local culture. Additionally, there is a noticeable growth in demand for luxury travel, particularly in Asia, where over 63% of travellers prefer booking 4-5 star hotels where the average daily rate (ADR) is approximately 5,500 baht per room.
