Tourism in the doldrums

As the TAT cuts its target for foreign arrivals this year, the industry faces several challenges requiring more than a marketing budget, write Nareerat Wiriyapong, Narumon Kasemsuk and Molpasorn Shoowong

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The tourism industry posted underwhelming results for the first four months this year as the international market contracted by 0.2% year-on-year.

In response, last week the cabinet approved a series of measures aimed at reassuring the industry of the government's commitment to rescuing it from a downturn.

As the Tourism Authority of Thailand (TAT) prepares to downgrade its target for foreign arrivals this year, while retaining the goal for higher revenue growth, significant challenges remain.

Many of these obstacles cannot be resolved through marketing efforts alone, requiring cooperation and commitment from multiple ministries to achieve the desired goals, particularly reassuring potential tourists about safety measures.

THE CHINESE FACTOR

The economy usually has an impact on outbound tourist flows from China. However, last year differed as the number of Chinese travelling abroad surged to 146 million despite a dismal economy.

The Chinese outbound market was predicted to reach 155 million travellers this year, the same level as in 2019.

Thai tourism operators took note as the figures confirmed Chinese still have strong demand for international travel, but are looking beyond Thailand.

Dithanop Vattanawakin, an analyst with Krungsri Securities (KSS), said while outbound Chinese tourists have surged, their arrivals in Thailand are plummeting.

Between April 30 and May 6, outbound Chinese flight routes soared 16% year-on-year, with strong growth in flights from China to Japan (up 43% year-on-year) and South Korea (increase of 28%).

However, China-Thailand flight routes declined 25% on an annualised basis, marking the 13th consecutive week of decline.

Chai Iamsiri, chief executive of Thai Airways International (THAI), said air travel has rebounded to pre-Covid levels in most regions, with Asia-Pacific the lone exception.