Thailand targets luxury and niche tourism for growth boost
The Tourism Authority of Thailand (TAT) is setting its sights on four niche tourism markets for the upcoming year: wellness, luxury experiences, sports tourism, and honeymoons. This strategic focus aims to tap into the burgeoning trend of high-spending and luxury tourism, with the agency planning to introduce exclusive events across the country.
According to Chiravadee Khunsub, the Deputy Governor for Tourism Products and Business at TAT, these niche markets have gained traction due to tourists seeking valuable travel experiences in Thailand. The potential economic impact is significant; in 2019, the global value of these markets was approximately 31 billion baht (US$918 million), with projections by Allied Market Research estimating a rise to 390 billion baht (US$11.5 billion) by 2027.
In Thailand, luxury tourism alone generated between 60 and 70 billion baht (US$1.7 to 2 billion) in 2023, as per Ipsos data. TAT anticipates this sector to expand by 8% to 10% annually.
In the first nine months of this year, tourists from these niche markets predominantly visited Bangkok, Phuket, Pattaya, Krabi, and Samui, spending on average 77,693 baht (US$2,300) per person per trip, which breaks down to 6,171 baht (US$182) daily, said Chiravadee.
“Thailand is well-positioned to accommodate this group, based on its various tourism destinations, luxury hotels, safe travel, and warm hospitality.”
In response to this growing demand, hotels with four or more stars have already increased their daily room rates by over 20 to 30%. TAT’s vision for the coming three years includes hosting international events such as concerts, seminars, sports, and fashion shows, in collaboration with luxury operators nationwide.
Long-term strategies also involve promoting wellness and art tourism while developing facilities and supplies to cater to luxury tourists. Recently, Thailand hosted the global trail running event, Hoka Chiang Mai Thailand by UTMB, which attracted over 7,000 visitors and generated around 800 million baht (US$23.7 million). Approximately 70% of attendees were international tourists.
Luxury tourism
Earlier this month, the Amazing Thailand Marathon Bangkok 2024 took place, featuring Kenyan long-distance runner Eliud Kipchoge as an ambassador. The event drew over 33,000 participants and brought in about 660 million baht (US$19.5 million).
Looking ahead, TAT plans to organise new exclusive events in Thailand, such as concerts and festivals. The annual illumination show Vijit Chao Phraya, launched three years ago, attracted more than 500,000 visitors this year, generating over 1 billion baht (US$29.6 million) in revenue.
TAT is also keen on elevating the international profile of local events like Chinese New Year, Songkran, and Loy Krathong. In tandem, the agency is prioritising sustainable and responsible tourism, highlighting the growing demand from foreign buyers, particularly in Europe, for sustainability standards.
“Many foreign tourists are willing to pay more for certified services,” Chiravadee said, emphasising the importance of sustainable tourism.
Next year, the Krabi Model will be promoted as a sustainable tourism prototype, featuring initiatives like green events, electric vehicle usage, and skills training in tourism services, reported Bangkok Post.
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