Politics addresses tourism roadblocks

Candidates trot out familiar platforms, but the industry needs an overhaul, write Narumon Kasemsuk and Molpasorn Shoowong

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As the general election approaches in less than a month, political parties have begun to announce policies aimed at stimulating the economy amid the slowdown.

The private sector has raised concerns that these moves may underestimate the structural challenges that continue to impede sustainable growth of the Thai tourism industry.

Foreign tourism arrivals declined 7.23% last year to nearly 33 million, with revenue down 4.7% to 1.53 trillion baht, yet the industry continues to play a vital role in supporting local economies, accounting for 17% of GDP prior to the pandemic.

STRUCTURAL REFORM

According to opinion polls from various sources, the People's Party continues to lead, pushing policies that highlight structural reform and anti-corruption measures.

The party's tourism policies aim to directly address challenges and offer solutions to longstanding obstacles.

Sittiphol Viboonthanakul, a party-list candidate and economic team member of the People's Party, said Thailand's tourism sector traditionally faces three major challenges.

Roughly 70% of tourism revenue is concentrated in only five major provinces, with travel demand focused on holidays and peak seasons, leaving alternative destinations with limited income.

Overdependence on natural attractions has reduced repeat visits, as destinations such as the Temple of the Emerald Buddha or popular beaches are insufficient to lure returning visitors a decade later.

Compounding these issues is the widespread tactic of foreign businesses using nominees, which prevents tourism revenue from fully circulating within the domestic economy, said Mr Sittiphol.

Most critically, corruption associated with foreign investment, particularly bribery, creates hidden costs and undermines the country's international reputation.

As a result, he said the first priority must be to strengthen domestic infrastructure by promoting man-made tourism investments.