Tourism industry pioneer, previously serving as TAT governor, advocates for a innovative period in Thailand's travel sector.
So long, golden days of tourism, say the experts! Thailand's tourism is undergoing an epic shift, and it's time to redefine the landscape to step into a fresh, reinvigorated era. Yuthasak Supasorn, the ex-governor of the Tourism Authority of Thailand (TAT) and now the Chairman of the Industrial Estate Authority of Thailand (IEAT), has some powerful ideas to share to make this happen.
You ask, what's so different this time around? The Thailand tourism industry is grappling with some major structural changes due to environmental and market upheavals. This transformation might just rewrite the rules of Thailand's tourism game forever.
But all is not lost! While the tourism landscape is indeed changing, Yuthasak believes that we can transform the industry into a new and better version. After all, Thailand's tourism has proven to be a resilient force throughout various crises, driving the country's economy. Now, we're reaching a crucial juncture.
Turmoil in Tourism Trends
In the first half of this year, Thailand's tourism sector took a hit with international arrivals dropping by 2.7% to 14.3 million. The biggest cause for concern is the significant contraction in the Asian market, which contributes nearly 63% of all visitors, down by a whopping 11.35%.
Although arrivals from Europe, the Americas, Oceania, the Middle East, and Africa are up, they haven't offset the regional downturn. The sharp decline in Chinese tourists remains the most pressing issue, with only 1.95 million Chinese visitors gracing Thailand's shores during this period, dropping a substantial 32.7% from last year's 2.91 million.
Daily arrivals have fallen from 21,300 in January to just 10,000 in May, and if trends continue, Chinese arrivals in 2025 could reach as low as 4-5 million, marking a 12-year low.
A Picture of Concern among Chinese Tourists
Aided by media portrayals like the film No More Bets—which focused on crime and human trafficking in Thailand—Chinese tourists cite growing concerns about safety. Rising concerns have created a perception that Thailand does not offer proper safety measures to visitors.
Meanwhile, there's a shift in Thailand's top 10 inbound markets. Malaysia may soon overtake China as the leading source of visitors, due to a more stable decline. India is expected to overtake Russia for third place, boosted by Thailand's free visa policy, while Taiwan could slip from sixth place to last by year's end.
Neighboring countries view Thailand as overly reliant on traditional tourist attractions like the sea and food, with a dearth of fresh new offerings.
The decline in Thailand's global tourism competitiveness is evident in the 2024 Travel & Tourism Development Index by the World Economic Forum. Thailand dropped 12 places to rank 47th out of 119 countries, with sustainability plummeting by 36 ranks and security by 16.
Rising costs in accommodation and dining, which once made Thailand an affordable destination, have further eroded its appeal. Thailand now ranks second to last in ASEAN's price competitiveness, ahead of only Singapore.
Adapting to the New Era
Better Target
Yuthasak has called for a reformation in Thailand's tourism industry, focusing on three core principles: balance, quality, and sustainability, under the concept of Better Target, Better Quality, and Better Future.
To attract new and higher-spending visitors, Thailand needs to concentrate on Chinese tourists as well as identify new markets to compensate for lost revenue. Yuthasak advocates a shift towards free independent travellers (FITs) and group tourists from neighboring countries and other short-haul markets, making Thailand an attractive holiday and weekend destination.
Marketing should prioritize high-quality visitors over sheer numbers, targeting individuals with a high income and a penchant for spending who belong to niche interest groups and are socially responsible travelers.
Thailand should aim to make every city a must-visit destination, ensuring that it's a tourism hot-spot year-round. Domestic tourism should be strengthened, establishing Thai tourism as a stable revenue source that complements international arrivals and mitigates risks associated with external factors.
Better Quality
To enhance Thailand's tourism offerings, the global perception should be that the country genuinely CARES, providing a high-quality and safe destination for tourists. Implementing a CARE framework consisting of caution, aid, remedy, and escalation will help prevent accidents and ensure a rapid response in emergencies, emotional support, and strengthened preventative measures for improved safety.
Additionally, Thailand should prioritize the development of high-quality tourism routes, combining local identity, nature, history, traditions, and lifestyles to create irresistible and intriguing attractions.
Better Future
Thailand needs to focus on sustainable tourism as the foundation for long-term industry growth and revenue generation. Proactively revamping both natural and man-made attractions and upgrading infrastructure and facilities along the tourism supply chain to meet international standards is essential for ensuring a better future for the industry.
Adopting modern technology and innovation will create an unparalleled visitor experience, ensuring that tourism integrates seamlessly into the local economy, generating widespread benefits without harming the environment or social fabric.
Yuthasak urges both the public and private sectors to adapt swiftly to global challenges to secure tourism's vital role in Thailand's economic development.
Although the country may have left its golden age behind, Yuthasak remains hopeful that Thailand can thrive in the new era of tourism, achieving long-term and sustainable success on the global stage.
- Yuthasak, in response to Thailand's tourism industry changes, proposes a reformation focusing on balance, quality, and sustainability, advocating for a shift towards high-quality visitors, free independent travelers, and group tourists.
- To reinforce Thailand's tourism appeal, Yuthasak emphasizes the importance of improving safety, implementing a CARE framework, and developing high-quality tourism routes that showcase local identity, history, and traditions.
- Recognizing the declining competitiveness of Thailand in the global tourism market, Yuthasak suggests proactive revamping of attractions, infrastructure, and facilities to meet international standards, as well as adopting modern technology and innovation for an exceptional visitor experience.
- Aiming for long-term success, Yuthasak encourages the public and private sectors to swiftly adapt to global challenges, integrating tourism into the local economy while ensuring minimal harm to the environment and social fabric.
- The ex-governor of TAT also anticipates the shift in Thailand's top inbound markets, with Malaysia potentially overtaking China, and India expected to surpass Russia, bolstered by their free visa policies.
- In response to the significant contraction in the Asian market, affecting nearly 63% of all visitors, Yuthasak calls for the identification of new markets to compensate for lost revenue, aiming to make every city a must-visit destination and fostering domestic tourism as a stable revenue source.
