Indian travel slowing due to new restrictions
The massive Indian demographic for Thai tourism has been slowing due to new Covid-19 travel restrictions the Indian government has implemented. Travellers returning from Thailand are now required to take an RT-PCR test, an expensive inconvenience that is discouraging many from travelling.
The so-called meetings, incentives, conventions and exhibitions (MICE) segment and independent travellers have been particularly put off by this new restriction. Enchantive Asia, a tour company specialising in clientele from the Indian subcontinent, estimates that corporate meetings from India will be reduced by at least 40% with many organisations suspending all travel plans in the first quarter.
Some companies that have already made payments are choosing to reduce the number of people attending corporate travel events. Travel hesitancy is a growing problem due to the test requirement before boarding and unclear measures in the event of a positive test result in Thailand.
The first quarter is typically a busy period for corporate meetings, as companies rush to use up budget money for the fiscal year before reporting financial statements in March. However, the requirement for RT-PCR tests, as well as extra Covid insurance, has led to an increase in costs for corporate travel, breaking the budget allocated for these trips.
Some groups may postpone their trips to the second quarter, or at least until restrictions are eased. Thailand will lose a large amount of tourism revenue in the first three months of the year, but the second quarter is also typically strong for Indian Mice meetings if restrictions are lifted by then.
Independent travellers and tourist families are also hesitant to plan holidays to Thailand, with more of their trips being cancelled or rescheduled. They don’t want to deal with the hassle of taking Covid tests and paying extra.
The Tourism Authority of Thailand reported that last year that India ranked second in terms of arrivals to Thailand, with 965,994 visitors. Only Malaysia, with its easy border crossing trips drew more travellers, with 1.9 million arrivals.
