Thailand Misses Revenue Target Despite European Tourists Spending More per Trip

Tourists at the popular Maya bay on Phi Phi Leh in Krabi province. Photo: Rajavi Omanee / Associated Press
Tourists at the popular Maya bay on Phi Phi Leh in Krabi province. Photo: Rajavi Omanee / Associated Press

BANGKOK – Thailand will accept foreign tourists for less than one month in 2023; therefore, it is clearly evident whether tourist numbers and income will meet the target or not.

Thapanee Kiatphaibool, the Director-General of the Tourism Authority of Thailand (TAT), revealed on December 6 that in the year 2023, it is anticipated that the number of international tourists visiting Thailand will reach 28 million, generating revenue of 1.2 trillion baht.

This projection falls short of the initial target set by TAT for the year, which aimed for 25-28 million international tourists and revenue of 1.6 trillion baht. It is expected that in the remaining months of December, an additional 2 million international tourists will visit due to global tourism events.

Samui

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When combining the income from international tourists and Thai nationals in the year 2023, the total revenue is estimated to be 2 trillion baht. This is below the target revenue set at 2.4 trillion baht, resulting in a shortfall of 400 billion baht. The main reason for this shortfall is that the income from international tourists did not meet the set targets.

Thapanee explained that the spending per trip among European tourists increased as they stayed longer in Thailand, even though their numbers are proportionally smaller compared to tourists from neighbouring countries.

This year, Malaysia is one of the top countries with a significant increase in tourist arrivals, estimated at 4.59 million people. However, their spending per trip is only 26,000 Baht per person, excluding accommodation and airfare because they stay for shorter durations.

malay visitors
Malaysian tourists are now the top foreigners visiting Thailand.

Thapanee further stated that the government’s measures, such as visa exemptions for China, Kazakhstan, India, and Taiwan, as well as the extension of the stay period for Russian tourists to 90 days, have significantly supported tourism.

She believes these measures have been effective, as evidenced by Malaysia announcing an extension of visa exemptions for Chinese tourists until the end of 2024. If the visa exemption measures were not effective, competitors would not follow suit.

In terms of tourist spending, a report from Alipay indicates that the Chinese tourist market has seen a 100 percent increase in spending on shopping and dining in Thailand, rising from 10,000 Baht to 20,000 Baht per trip, excluding accommodation and airfare.

Based on the above case, TAT will implement policies in 2024 to encourage longer stays of tourists from neighboring countries to increase spending in Thailand. This is in line with the objectives set by the Ministry of Tourism and Sports, hoping to achieve a total revenue of 3.5 trillion baht, exceeding the initial target of 3 trillion baht set by TAT.

thai chinese tour1
Tourists take photos at the Wat Arun in Bangkok, Thailand, on June 16, 2023. (Xinhua/Wang Teng)

The target for the number of Chinese tourists in 2024 is set at 8.5 million, and the government is preparing to propose an extension of visa exemptions for Chinese tourists, which is set to expire on 29 February 2024. Additionally, there are considerations to extend the stay period for tourists from countries that already have visa exemptions from 30 days to 90 days.

Discussions are also underway with the Ministry of Foreign Affairs to negotiate with foreign nationals for a visa arrangement that allows entry and exit between Thailand and neighboring countries similar to a multiple-entry visa.

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“As the Prime Minister is a businessman, he understands the challenges of tourism well and has instructed TAT on various issues that need to be addressed. This includes quick wins to stimulate the international tourism market after the government implemented strong measures by exempting visas for several countries. It also involves managing the online image of Thai tourism, tourism atmosphere, and promoting secondary cities for tourism,” she said.

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