Thailand’s tourism boom: Revenue set to soar to 2.8 trillion baht

Hold onto your sun hats! Thailand’s tourism sector is on the brink of a massive surge in the latter half of the year, with an eye-popping revenue forecast of 1.46 trillion baht. That’s set to push the annual total to a whopping 2.8 trillion baht—up a staggering 25% from last year, according to the Tourism Authority of Thailand (TAT).

The TAT is buzzing with excitement over the revival of flight numbers and a flurry of promotional campaigns. They’re expecting a 23% boost in tourism revenue from both overseas and homegrown visitors.

Foreign holidaymakers are predicted to hit 18.2 million, splashing out 964 billion baht. Meanwhile, locals are gearing up for 103 million trips, raking in 504 billion baht. It’s shaping up to be a record-breaking year!

The country is set to welcome at least 35.9 million foreign visitors and record 192 million domestic trips this year, confirmed TAT Governor Thapanee Kiatphaibool. International flights are expected to resume to 80% of their 2019 levels between July and December, representing a 10% increase from the same period last year, with approximately 22 million available seats.

“We are hopeful for strong traffic during long holidays, including China’s Golden Week in October and the New Year holiday.”

Key inbound markets for the second half include East Asia, Europe, and South Asia, with China predicted to lead with 3.6 million visitors, followed by Malaysia with 2.6 million, and South Korea with one million.

Nihao Month

To capitalise on the Chinese market, the TAT plans to introduce “Nihao Month” in September to celebrate the 50th anniversary of diplomatic relations between Thailand and China. This campaign will run in collaboration with five Chinese online travel platforms from September through the end of the year, tapping into Chinese tourists’ preference for destinations offering excellent value for money, Thapanee said.

“We are also focusing on attracting meeting and incentive groups from India and participating in trade shows targeting the Middle East market.”

Additionally, the TAT is expanding its international presence by opening a new office in Chicago to cater to rising demand from the Midwest and Canada.

However, Thapanee cautioned that a sluggish Chinese economy and geopolitical tensions, such as the conflicts in Ukraine and Gaza, could pose risks to the industry.

Thailand also faces formidable competition from neighbouring countries like China, Japan, Vietnam, and Malaysia, which have relaxed visa regulations and launched aggressive marketing campaigns to attract high-spending tourists.

To bolster domestic tourism, the TAT has organised travel campaigns and events across five regions in Thailand. Yet, high costs, particularly fuel prices, remain a significant barrier for the domestic market.

Approximately 80% of local travellers prefer driving, meaning any substantial increase in travel costs could impact locals’ travel decisions in the second half of the year, said Thapanee.

“High travel costs, especially fuel prices, might influence travel decisions among local tourists.”