Thailand to boost tourism to drive economic growth

The Tourism Authority of Thailand (TAT) is on a mission to stimulate tourism, focusing on boosting revenue in 55 secondary provinces by a staggering 20%, aiming for a grand total of 91 million trips this year. This ambitious goal, however, falls short of the mark for key provinces.

For the first nine months of the previous year, the 55 secondary tourism provinces attracted a commendable 73 million trips out of a whopping total of 185 million. These journeys raked in an impressive revenue of 169 billion baht, contributing to the projected domestic revenue for the full year, set at a jaw-dropping 900 billion baht.

Somradee Chitchong, the Deputy Governor for Domestic Marketing at TAT, sheds light on the spending trends in these second-tier provinces. Despite an increase of 3.05% in average spending, reaching 2,313 baht per trip, it pales in comparison to the 2019 and 2020 figures, clocking at 2,760 baht and 2,540 baht, respectively.

Somradee notes that the less popular destinations struggle to match the nationwide average spending of 4,000 baht per trip. TAT reveals that these struggling second-tier provinces are predominantly located in the northeastern and northern regions, with 18 and 16 provinces, respectively. In contrast, the southern, central, and eastern regions have nine, seven, and five provinces, respectively.

To meet the colossal domestic revenue goal of 1.08 trillion baht set for this year, Somradee outlines the expected contributions. The central region is predicted to secure the highest tally at 464 billion baht, marking a remarkable growth of 40%. Following closely are the north at 187 billion, up by 21%, and the East at 178 billion, showcasing a gain of 23%.

Surprisingly, the southern provinces, usually the mainstay for foreign tourists, are projected to experience the highest growth at 54%, accumulating an income of 166 billion baht. The northeast is also expected to step up with an anticipated earning of 92.8 billion, reflecting a robust 35% growth.

Domestic tourism

In terms of visitors, the central region is forecasted to dominate domestic tourism, with a whopping 103 million trips, witnessing a significant growth of 50%. The shift is attributed to more tourists from other regions visiting Bangkok and choosing nearby provinces over cross-regional trips, driven by high travel expenses, reported Bangkok Post.

The TAT Domestic Marketing executive outlines the key direction for 2024.

“The focus is to stimulate the tourism economy in second-tier provinces, narrowing the income gap. However, the challenge lies in a supply shortage, with some provinces unsure how to develop tourism products to lure visitors, especially amid stagnant purchasing power.”

Despite a restricted budget, TAT unveils a promotional plan lasting until April, based on a 400-million-baht interim budget allocated to the agency. The eagerly awaited fiscal 2024 budget, expected to be approved in May, will likely pave the way for more extensive plans.