Impact of tariff hikes on tourism likely to unfold next year

Tourism operators view the US's tariff policy as indirectly hampering Thai tourism in the form of reduced spending, but this impact is not expected to unfold until next year, as many tourists have already booked trips for the upcoming high season.

- MOLPASORN SHOOWONG

They have also suggested the Thai government use this opportunity to upgrade the country’s tourism infrastructure, develop new attractions to remain competitive with Vietnam, and accelerate the 350-million-baht chartered flight incentive to prevent a freefall in arrivals.

Rangsiman Kingkaew, president of the Tourism Council of Phuket, said the economies of major inbound markets to Thailand, such as South Korea and Japan, had been stunned by the US’s latest tariff rates, although there's still room for negotiation until the end of this month.

Trade tensions between the US and China also persist, which could result in higher living expenses and increased prices of goods for US residents, leading to a reduction in spending and a slowdown in travel, said Mr Rangsiman.