Thai tourism’s financial focus starts paying off

Posted on March 30th, 2017

Category: Absolute Hotels Absolute Resorts

Thailand’s strategy of focusing on quality over quantity, in terms of its international tourist arrivals, appears to be paying off.

The Tourism Authority of Thailand (TAT) revealed today (Wednesday 29 March 2017) that the country expects to generate THB490 billion (US$14bn) in international tourism revenues in the first quarter of the year, marking a year-on-year increase of 7%.

This growth rate is significantly higher than the expected 2% increase in international visitor arrivals, which are forecast to reach 9.2 million in the first three months of 2017. This indicates that international travellers are spending more per person in Thailand now than they were this time last year.

The sharp deceleration in the growth of visitor arrivals however, from a year-on-year rate of +15% in the first quarter of 2016 to just +2% in Q1 2017, may cause some concern. Q1 is traditionally Thailand’s peak season.

Thailand is also expecting to register 32.5m domestic tourism trips and THB240bn in domestic tourism revenues in the first quarter of 2017, marking year-on-year growth of 8% and 12% respectively. This means that, in total, the country’s tourism industry is forecast to generate THB734bn in Q1 2017, up 9% year-on-year.

And this growth is forecast to accelerate in the second quarter, with an 11% year-on-year revenue increase, to THB630bn, including THB16.6bn expected to be generated during the five-day Songkran holiday period.

“In the first quarter we’ve seen healthy growth from all source markets, and so we expect this growth momentum to continue into the second quarter,” said Yuthasak Supasorn, governor of the TAT. “This expectation is based on a number of factors; Thailand will host the WTTC Global Summit 2017 from 26-27 April in Bangkok, and the Destination Wedding Planners Congress 2017 from 2-4 May in Phuket.

“TAT will also enhance our marketing efforts in China through a series of roadshow events that focus on the luxury, health and wellness, and new markets as well as through celebrity marketing under the ‘Experience Thailand with Mario’ campaign,” he added.

Thailand welcomed a record 32.6m overseas visitors and generated THB1.64 trillion in international tourism revenues in 2016, up 9% and 13% respectively.