Thailand’s tourism sector set to generate 614 billion baht in Q2

Picture courtesy of Bangkok Post

Despite the second quarter often being perceived as the off-peak season, the Tourism Authority of Thailand (TAT) anticipates that the country’s tourism sector will generate a revenue of 614 billion baht (US$ 16.7 billion). This optimistic prediction is attributed to a surge in domestic trips during the Songkran festivities scheduled for this month, which are set to surpass the number of trips recorded in the first quarter.

TAT Governor Thapanee Kiatphaibool projected that the nation will amass 246 billion baht (US$6.7 billion) from an estimated 44.4 million domestic trips, while foreign tourists are expected to contribute 368 billion baht (US$10 billion) in revenue from approximately 8.27 million visits during the second quarter.

According to Thapanee, the volume of domestic trips is likely to outdo the figures recorded in the second quarter of 2019, with the domestic income nearing a full recovery to 97% of the amounts posted during that period. She referenced the 41.1 million trips made by local tourists during the first quarter of this year, which resulted in expenditures totalling 228 billion baht (US$ 6.2 billion).

The governor identified the 21-day Songkran celebration, inclusive of the Maha Songkran World Water Festival held in Bangkok’s Ratchadamnoen Klang Road, as a significant catalyst for the anticipated growth in the second quarter. Additional public holidays, such as Visakha Bucha Day, HM Queen’s birthday and the school summer season, are also expected to fuel the increase in trips, Thapanee added.

Related news

However, TAT acknowledged potential obstacles that could dampen consumer spending, including elevated living costs, household debt, and fluctuating energy prices. The agency also noted a growing interest among Thais to travel overseas, expressing that domestic destinations like Phuket and Samui can be as costly as travelling to foreign countries.

The second quarter also marks the low season for the foreign market, with the number of trips projected to decrease from 9.3 million (generating 476 billion baht (US$13 billion) in the first quarter) to 8.27 million trips, contributing 368 billion baht (US$10 billion) in the second quarter.

Tourism revenue

TAT estimates a year-on-year growth of 29% and 25% in the number of international visitors and revenue, respectively, with recovery levels reaching 92% and 95% of the 2019 figures in the corresponding categories. Thapanee noted that Asian markets are projected to maintain stability this quarter, bolstered by extended holidays in major markets such as Japan’s Golden Week and China’s Labour Day in early May.

The governor also highlighted that tourists from the Middle East exhibit eagerness to travel abroad in April, following the conclusion of Ramadan.

“TAT has been targeting tourists in the middle- to upper-income segments, including first-time visitors from second-tier cities in China and India, the meetings, incentives, conventions, and exhibitions segment, and niche markets with special interests, such as health and wellness as well as sports.”

She, however, pointed out challenges for international markets, including China’s sluggish economy, the war in Ukraine instigated by Russia, the Israel-Gaza conflict, and the El Niño weather phenomenon. According to Thapanee, high international travel costs continue to deter families and long-haul tourists from visiting Thailand, reported Bangkok Post.

Business NewsThailand NewsTourism News

Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

Related Articles