Thailand’s tourism revenue falls short of annual target

The Tourism Authority of Thailand (TAT) projected a shortfall in its annual tourism revenue target, with this year’s earnings expected to reach 2.07 trillion baht (US$58,773,427,200) instead of the projected 2.38 trillion baht. TAT Governor, Thapanee Kiatphaibool, attributes this shortfall to the sluggish performance of international tourism receipts, which were significantly lower than the state’s target of 1.6 trillion baht.

Despite welcoming over 25 million foreign visitors as of December 3, the revenue generated from these arrivals was just 1.07 trillion baht. TAT predicts an additional 2 million foreign tourists in December, with their spending during the festive period expected to augment total international receipts to between 1.17 and 1.27 trillion baht.

Contrarily, domestic tourism demonstrated a robust performance, surpassing the state target with a recorded 228 million trips. By the year-end, Thai travellers are projected to have made 240 million trips, contributing 800 billion baht to the overall tourism revenue, said Thapanee.

“Post-pandemic Thais have travelled more often, but with a tighter budget.”

The average spending per trip among foreign visitors was reported to be 42,000 baht, notably higher than pre-pandemic levels but still short of the projected 50,000 baht per trip. Long-haul tourists, particularly from Russia and Israel, proved to be higher spenders, while visitors from Malaysia, Thailand’s largest inbound market, reduced the duration of their stay but visited more frequently, reported Bangkok Post.

Despite the visa exemption incentive, the number of Chinese tourists fell short of the TAT’s forecast of 4 million, with expectations now set around 3.4 to 3.5 million. Thapanee suggested that the flourishing domestic travel scene in China, offering competitive pricing, may have contributed to this shortfall.

In response to these trends, TAT plans to propose extensions of visa exemptions for Chinese travellers and other key markets in the coming year. The agency also hopes to encourage short-haul visitors to extend their stay in Thailand, said Thapanee.

“We’ve already proposed extending visa-free stays for countries eligible for visa exemptions, similar to the government extension of stays for Russian travellers to 90 days from 30 days.”

The TAT also plans to discuss with the Foreign Affairs Ministry the possibility of offering a multiple-entry visa for tourists, a strategy aimed at promoting increased spending.