Thai food for thought: Restaurant sector set for festive tourism feast
The Thai restaurant sector is set to experience a significant boost during the new year festive season, largely driven by an increase in holiday travel and tourism. Despite this optimistic outlook, the Thai Restaurant Association expressed concerns regarding a potential decline in total spending on food and beverages due to weakened purchasing power and the concentration of activities in popular tourist areas.
Cautious spending behaviour among Thais has been observed since the beginning of December, as many individuals are likely saving for the year-end holidays. Consequently, the restaurant industry has remained flat, said Thai Restaurant Association President Thaniwan Kulmongkol.
Holiday travel towards the end of December is expected to invigorate the industry. However, the sluggish state of the economy might lead travellers to reduce their food and beverage expenses, potentially lowering the average spend per customer, according to Thaniwan.
December marks a peak season for tourism, and the influx of foreign visitors is anticipated to uplift the restaurant sector. Data from the Economics Tourism and Sports Division of the Tourism and Sports Ministry indicates that from January 1 to October 1, Thailand received over 32 million foreign visitors, with Chinese (6.2 million), Malaysians (4.5 million), and Indians (1.9 million) being the predominant groups.
“I believe daily foreign arrivals could now surpass 100,000, and we are likely to total 35 million foreign arrivals this year,” Thaniwan said.
Nonetheless, there is concern that tourist spending might remain concentrated in major tourist destinations, failing to benefit a wider range of areas. Malaysian tourists, in particular, often take shorter trips, frequently crossing into Thailand using personal vehicles through southern border checkpoints, which limits their stay to areas like Songkhla, without reaching provinces farther north such as Ranong and Chumphon.
Thaniwan recommended that officials promote new dining districts, encouraging both foreigners and locals to explore lesser-known areas beyond popular spots like Bangkok’s Chinatown, Silom Road, and Khao San Road.
The Tourism Authority of Thailand could play a pivotal role by leveraging media or influencers to highlight these areas’ attractiveness, she suggested, reported Bangkok Post.
If we can establish dedicated food streets or districts, it would substantially help both tourism and the restaurant industry, concluded Thaniwan.
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