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InfoQuest

Thai tourism expects on 2.2 pct revenue increase: Kasikorn Research Center

April 11, 2019


Abstract : Kasikorn Research Center ("the Center") estimates that during 2019 Songkran Festival (April 11-17, 2019), Thai and foreign tourists will bri

InfoQuest, (April 9, 2019) -- Kasikorn Research Center ("the Center") estimates that during 2019 Songkran Festival (April 11-17, 2019), Thai and foreign tourists will bring some 28 billion baht revenue for tourism and related industries, up 2.2 percent year-on-year.

"Though hot weather, droughts in some regions, and haze in many northern provinces mayprompt some tourists to reconsider their travel plans and activities during Songkran Festival, the overall atmosphere is conducive to tourism growth, including the extra days of long vacation, and activities related to Songkran Festival to be hosted in many major tourism cities and second-tier tourism cities," said the Center.

During the 2019 Songkran Festival, Thai people are in a good mood for travel as usual. The Center predicts that during the seven days of Songkran Festival (April 11-17) in 2019, Thai people will spend an estimated 12.2 billion baht (including Thai people returning home, Thai tourists traveling within or outside their hometowns, and Thai tourists staying overnight or those of one-day tours); in such a long vacation like Songkran Festival, Thai tourists are more willing to travel abroad, which will challenge domestic tourism market.

After investigating the tourism behaviors of Bangkok people, the Center found that during this year's Songkran Festival, Bangkok residents are more incline to travel in Chon Buri (Pattaya), Phetchaburi, Ayutthaya, Kanchanaburi, and other neighboring regions.

It is noteworthy that a survey found that less than 5 percent Bangkok interviewees will choose northern regions. That shows the current haze problem in the north, which may also explain why tourists refuse to go to these regions.

For foreign tourists traveling in Thailand during the 2019 Songkran Festival, though the Centerreckons that haze in many northern provinces will affect tourism during this period; the fact is, since haze has cast over these regions for some time, tourists have chosen other regions, such as Bangkok, Ayutthaya, and Chon Buri, hence the overall sound picture. The rosy picture is boosted by the exemption of Visa on Arrival (VOA) fees, a policy to expire at the end of April. It is estimated that tourists from China, India and Taiwan of China will be the major tourist sources for Thailand. Part of the reasons is that tourism operators have made sustained market development in these regions.

But the number of tourists from other countries and regions will drop, such as Europe. That can be attributed to many factors, such as economic slowdown, dramatic weather changes, tourists changing destinations, and others.

The Center believes that this Songkran Festival will reap around 15.8 billion baht from foreign tourists(normally foreign tourists would come on around April 10-11 for Songkran Festival, and the estimated expenditure includes necessary travelling costs and other types of tourism spending during their stay).

The Center believes that during the rest of 2019, many issues are worth sustained attention when it comes to the trend of inbound tourism, such as whether to extend the VOA fees exemption policy, which will expire on April 30, 2019. There are many problems which reflect the ever-fiercer competition in international tourism industry. One case in point is that Chinese tourists have expanded their destinations to the whole world, which may reduce the number inbound Chinese tourists; when it comes to Russian tourists, the restored direct flights between Egypt and Russia may blunt the number of Russian tourists visiting Thailand in Russian summer. Egypt is the most popular outbound tourism destination for Russian tourists. Plus, amid the global economic sluggish, the purchasing power of tourists of all countries has been on the decline.

It is predicted that during the whole year of 2019, Thailand will receive over 39 million foreign tourists. A report of the Ministry of Tourism and Sports shows that in the first two months of 2019, the number of inbound touristsincreased 2.5 percent year-on-year or 7.29 million. Yet the number increase of tourists from many countries has slowed down, and part of the reasons is the relatively high base number of last year.

Source: InfoQuest, by Nisarat Wichiensri/ Rachada, translated by Xinhua Silk Road

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