Govt Offers “Half-Price Travel” to Boost Flood-Hit Northern Thailand

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Tourists begin to return to nature destinations in Mae Hong Son Province after the flood situation subsided, on Oct 14, 2024.

BANGKOK — After the northern region was hit by severe flooding in September and beginning of October, the government not only urgently needs to restore and provide aid to the affected residents, but also to boost the economy quickly.

The Tourism Authority of Thailand (TAT) has responded to the private sector’s proposals by announcing the “Travel to the North at Half Price” program. Businesses are preparing to recover and return to normal business operations, taking their cue from major tourism festivals in the north such as the Loy Krathong Festival and Winter Festivals. The program will begin on November 1, 2024.

Suwong Thienthong, Minister of Tourism and Sports, said on October 15 that the TAT is currently collecting tourism-related products and packages to be included in the TAT’s application-based system. Businesses, hotels and accommodations can participate in the program through this app, while the public can enjoy the benefits by scanning a QR code through the app.

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Soldiers help spray water to clean mud during the restoration of residents’ homes in Mae Sai District, Chiang Rai Province, on Oct 14, 2024.

Details of the incentives for tourism spending under the “Travel to the North at Half Price” program include:

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  • 10,000 participants
  • A spending limit of 800 baht
  • The government will cover “half” of the cost from the TAT budget, 400 baht per person/trip
    Tourists pay the remaining 400 baht per person/trip
  • Eligible expense categories include hotels, accommodation, restaurants, cafes and activities at tourist attractions
  • If the program is well received, it will be proposed to the Cabinet for further expansion to boost the economy as much as possible

This initiative will be implemented in all 17 northern provinces, including Chiang Rai, Nan, Phayao, Chiang Mai, Mae Hong Son, Phrae, Lampang, Lamphun, Tak, Uttaradit, Phitsanulok, Sukhothai, Phetchabun, Phichit, Kamphaeng Phet, Nakhon Sawan and Uthai Thani.

Chiang Mai, an important tourist destination, suffered considerable losses in September and October. According to an estimate by Assistant Professor Dr. Phairach Phiboonrungroj, Vice President and Head of the Faculty of Economics at Chiang Mai College, the total revenue from tourism in Chiang Mai is about 200 billion baht ($6 billion) per year, with an average of 50 billion baht ($1.5 billion) per quarter. The period from October to December usually sees the highest revenues.

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Tourists pose for photos with the 400-year-old mural painting “Whisper of Love” or “Phu Mhan Ya Mhan” inside Wat Phumin, Nan Province, Thailand, on Oct 14, 2024.

This October, however, Chiang Mai has already lost an entire month’s revenue as the city is being restored and buildings repaired. It is estimated that tourism revenue could fall by about 10 percent, or around 5 billion baht ($150 million), in the last quarter of this year, depending on how quickly the city can recover and restore confidence, Dr. Phairach said.

Phakphum Phonpisit, President of the Chiang Rai Chamber of Commerce, revealed to “Prachachat Business” that the Chiang Rai Chamber of Commerce has assessed the damage to Chiang Rai province affected by flooding to be approximately 20 billion baht. Of this amount, the damage to the economy and tourism sector accounts for another 10 billion baht.

Chamnan Srisawat, president of the Tourism Council of Thailand (TCT), said that while they had never asked the government for such a campaign during the peak season, this year’s peak season was not normal and was considered a crisis.

If the government does not act quickly to restore destinations and revitalize tourism, especially in the domestic market which is not performing well, tourism revenue targets may not be met. Normally, Chiang Mai and Chiang Rai alone generate around 10 billion baht ($300 million) per month.

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Foreign tourists watch the sunrise at Doi Inthanon, Chiang Mai Province, as temperatures drop to a cool 11 degrees Celsius, on Oct 15, 2024.

Phallop Sae Chiu, acting president of the Chiang Mai Tourism Council, said the economic impact of the first flood (Sept. 25-28) is estimated at about 70 million baht per day, totaling about 280 million baht over four days, as daily tourism revenue averages about 200 million baht.

The second flood, which began on 3 October and affected a larger area, reduced tourism revenue by around 100 million baht per day. The city and businesses will recover during October. Losses from the second flood are expected to amount to 2 billion baht, bringing the total damage from both floods to about 2.28 billion baht.

Previously, the TCT had proposed that the government support a “half-price travel” program” of 2,000 baht per person per trip to promote tourism in 55 attractive provinces (secondary cities) and flood-affected areas during the high season. The aim was to encourage tourists to visit lesser-known destinations, as most tourists usually focus on the big cities.

Uttaradit
Two women in traditional local dress promote tourism in Uttaradit Province.
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If this program helps boost travel to these cities, it would increase spending and help reach the target of 900 billion baht in domestic tourism revenue. This would also offset the low season, when business confidence indices indicate a decline in tourist numbers and tourism products and services are sold less.

Minister Suwong stated that if the Half-Price Northern Travel program is successful in boosting the economy and restoring confidence, the government will consider additional measures to stimulate tourism, such as expanding the “Half-Price Travel” program to the whole country, if the program receives a positive response in the north and cooperation from relevant agencies.

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