Thai tourism industry fears Israel-Hamas conflict could derail recovery
The Association of Thai Travel Agents (ATTA) is worried the impact of the Israel-Hamas war on Thai tourism could become severe if the conflict expands.
ATTA president Sisdivachr Cheewarattanaporn said the Thai tourism industry this year has been buoyed by over 1 million Russian visitors, attracted by the warm weather, perceived safety, and affordable living.
However, the number of Israeli visitors – who are relatively high-spenders – stands at just 190,000 and could have been far higher if not for the conflict with Hamas, Sisdivachr said.
An expanding conflict could also hit important Thai tourism markets in other Middle East countries, including high-spending Saudi travellers.
Total foreign tourist arrivals this year are projected to reach 27-28 million, reflecting the sector's ongoing recovery, the ATTA president said.
But recovery is being hampered by the economic slowdown in major tourism markets like China and Japan, he added.
Efforts are being made to restore international confidence, especially in markets like China, with ATTA targeting an 80% recovery compared with pre-Covid levels by next year.
An influx of Chinese visitors for the Chinese New Year festival next February should boost recovery, Sisdivachr said.
However, ATTA said risks such as the Israel-Hamas conflict and uncertainties regarding air travel pose challenges in restoring the level of around 40 million international tourists that Thailand received pre-Covid in 2019.
The Tourism Authority of Thailand has set a goal of 35 million visitors in 2024.
Meanwhile, Tourism Council of Thailand (TCT) president Chamnan Srisawat said the country must fill the gap by finding additional markets, particularly domestic tourists, in the fourth quarter of this year.
Boosting domestic travel would help reduce risks from external factors such as slow global recovery and conflicts in the Middle East and Ukraine, he said. This effort would help sustain employment levels in Thai tourism and bolster the income of returning businesses.
"The impact of previous conflicts has not entirely vanished. We must face new conflicts between Israel and Hamas, which threaten the global and Thai economies. Travel and tourism will be affected again as people become more concerned. Therefore, the government must implement support measures, or “booster shots” to help. Otherwise, the goal of 200 million domestic tourists might not be achieved," he emphasised.
Supporting the Thai tourism market should go hand in hand with strategies targeting high-spending visitors since wealthy people from places like China still travel and spend lavishly in difficult economic times, Chamnan added.
Neither should Thai tourism promotions be limited to major provinces like Chiang Mai, or Phuket, he said. Numerous provinces nationwide are capable of accommodating both domestic and international tourists, he pointed out. Boosting domestic demand would also help domestic airlines rebound to full operating capacity, injecting more money into the Thai economy, the TCT president said.
