Thailand to drive domestic tourism as economy rides out drop in foreign visitors

 

Image: Google

 

BANGKOK (Reuters) - Thailand plans to boost domestic tourism in the third quarter to help support the struggling economy as the coronavirus pandemic hits global travel and domestic consumption, the state planning agency said on Monday.

 

The export- and tourism-driven economy may shrink 5% to 6% this year, the worst since the 1997-98 Asian financial crisis due to the outbreak, the agency has said.

 

"Other engines are off during COVID" and there are only government spending and tax measures to help the economy, Thosaporn Sirisumphand, head of National Economic and Social Development Council, told a news briefing.

 

The government expects to roll out a package for domestic travel from July, he said, adding the details would be clear by mid-June.

 

"Tourism should be a fast economic stimulator," he said. "If the situation improves, we may open for tourists to come in".

 

The plans to boost domestic tourism will be financed by some of the 1 trillion baht ($31.3 billion) the government will borrow to reduce the impact of the pandemic on jobs. It may include subsidies on rooms and other benefits, for example, although these have not been finalised, said Thosaporn, who is also the chairman of a committee supervising the spending.

 

Last year, spending by foreign tourists accounted for 11.4% of GDP, while domestic tourism made up 6%.

 

Foreign arrival numbers to the Southeast Asian country may tumble by 65% this year due to the coronavirus pandemic, the Tourism Authority of Thailand has said. The respiratory disease has infected more than 5.4 million globally.

 

Thailand has reported 3,042 cases and 57 deaths since the outbreak began in the country in January. Some businesses have been allowed to reopen as cases slow.

 

-- © Copyright Reuters 2020-05-25

 

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15 minutes ago, snoop1130 said:

Thailand plans to boost domestic tourism in the third quarter

drop in the bucket; with the mall restrictions, 7/11s, soon-to-be-all large stores, banks; i and all my friends wont be going out; proxy thais to shop for us, much online; private parties in backyards' friends; i and , very many, wont play this game

10 minutes ago, YetAnother said:

i and , very many, wont play this game

You're not the target market. They're thinking about Thais, which is even funnier considering a good chunk of the younger population is now unemployed. Who's going to take those domestic trips exactly and with what money? I think even the hiso Thais will be more careful with their spending this year so even that market will shrink, let alone "regular" Thais.

I seriously cant think of another country who has messed up their tourism future as bad as this, primarily based on xenophobia.

8 hours ago, zeamonkey said:

I seriously cant think of another country who has messed up their tourism future as bad as this, primarily based on xenophobia.

cha cha will probably go down in history as one the worst coup leaders in Thailand.  Many had their second homes there: oil workers, internet vagabonds, artists.   But not after guiding hand of cha cha.  He has only caused trouble and pain.  

Do anyone honestly think 'domestic' customers are the short term answer!?

 

They know the real price of things and seen most of the sights already so 

 

Yep that'll work!! 

I’m blown away that any of you are still living there! I dunno why I keep coming back here even. Gave up my residency in Thailand to be a nomad 4 years ago and been back 4 times since. I guess it’s like passing a train wreck. You just can’t look away. ????

 

But seriously, <deleted>? Maybe they can get some Issan farmers down to the Intercon in Samui? Or the Renaissance in Phuket? No Thai guys want to patronize the beer bars in Pattaya? Bangkok HiSo’s not interested in patronizing the street markets in Patpong? Shocking I tell you! 

Edited May 26, 20206 yr by moto77

Don't discount the value of domestic tourism. If the article is true, locals spend is almost half of that spent by foreigners. Fact 76% of tourists in Hua Hin in 2019 were Thai.  Average hotel rate 4k a night. Domestic tourism also puts more cash right back into the economy.

...aaaand good luck with that! That really is grasping at straws! Its going to take a while but a failing economy will eventually bring aboit the realisation that COVID-19 is here to stay regardless of a vaccine etc etc. People need this fact to sink in and become the norm just as the seasonal flu and dengue and other mirad of potentially lethal pathogens are accepted as part of the risk of living on planet earth. You simply cant put 7.something billion human beings on lockdown or quarantine or the threat of it indefinately. The economic damage is going to indirectly kill and harm far far more than this virus ever could have even if it was left unchecked. Mark my words there will be documentaries in the coming years showing the devastating fallout from our reaction to this pandemic. Who knows the next one from a different virus could already be simmering on the camp fire waiting for some oaf to stick it in their mouth because it might get his dick to stand up five times a day rather than four!

I am surprised to note Thai Airways web - page is closed so it's not possible to make a booking for later this year or next year or any other time ?

I know the Company is in financial strife but surely they should be promoting a product somewhere ?

4 minutes ago, cracker1 said:

I am surprised to note Thai Airways web - page is closed so it's not possible to make a booking for later this year or next year or any other time ?

I know the Company is in financial strife but surely they should be promoting a product somewhere ?

You can't promote a product if you are in the middle of a bankruptcy procedure

The income generated by Thai tourists will by far not equal the money the foreign tourists spent .

A lot of Thais lost their job and income ... how could these people afford a holiday ?

Only if the government would pay for it , 55 .

But I know that there are a lot of expats wanting to return to Thailand to stay longer ... that would be a good occasion to reduce the bureaucratic hurdles imposed by the current xenophobic government ... and make foreigners feel welcome again .

You want the money ? Learn to smile and to be friendly ...

 

10 hours ago, PingRoundTheWorld said:

You're not the target market. They're thinking about Thais, which is even funnier considering a good chunk of the younger population is now unemployed. Who's going to take those domestic trips exactly and with what money? I think even the hiso Thais will be more careful with their spending this year so even that market will shrink, let alone "regular" Thais.

The massive middle class population with families and the rich newly graduated generation from BKK.

I agree it wont go that far, but it might keep the wolf from the door until early 2021.

21 minutes ago, bkk_bwana said:

Don't discount the value of domestic tourism. If the article is true, locals spend is almost half of that spent by foreigners. Fact 76% of tourists in Hua Hin in 2019 were Thai.  Average hotel rate 4k a night. Domestic tourism also puts more cash right back into the economy.

Exactly, over 16% of Thai's travelled overseas last year, those same people will simply spend their money on holidays in Thailand this year, same as every other country.

 

"the number of Thais travelling overseas (2018) were 8.79 million last year, up 7.23 per cent and they spent a combined worth Bt276 billion". https://www.nationthailand.com/Tourism/30349409

Interested to see if this actually does anything. I definitely can't imagine a lot of Thais will be desperate to go on holiday in Thailand over the coming months. A few reasons might be children returning to school, loss of income / job, rainy season, health concerns etc.

 

Having a look on websites like Agoda and Booking recently I also noticed that there seems to be very little price drops. I would happily go away somewhere in Thailand for my summer holiday now but I definitely would be expecting a price reduction. 

It makes sense to focus on domestic tourism. It may not be as good as a lot of foreigners arriving with pockets full of money, but since the latter isn’t going to happen any time soon, it’s necessary to work with what you have, which is a population that can’t easily travel outside of Thailand. Several European countries are already doing the same.

 

questions are, just what does “focus” on domestic tourism mean? Ad campaigns don’t matter much, locals already know about local places to go. Discounts will count for more in terms of getting people to fly and stay in hotels. Also, for those travelling by car, the road carnage becomes a factor.

40 minutes ago, bkk_bwana said:

Average hotel rate 4k a night.

4k a night!!!???

 

People must be bonkers to pay these rates. Up here in Isaan, 4k will see you OK for a month.

 

Some, have more money than sense. Hua Hin can be nice, but when I was there I paid 400 Bhat a night.

,i was in the east and beaches were closed restaurants and hotels idle as they wouldnt open the beaches ,absurd so what do people do these tourists?this was rayong.beyond belief.ohhh those golden goose stranglers....again,we have so little virus here vietnam,philippines, malaysia, hk taiwan etc.get on with it,open to these virus free countries in the region too.USA UK no  but the economy is so fragile poverty stalks the people ,businesses are on the edge of the precipice.decisions ,make them and now.the impotence will kill far more effectievly than the virus 55 dead in 4 mnths plus amongst 68 million well thats answer enough.lunacy.

28 minutes ago, Trillian said:

Exactly, over 16% of Thai's travelled overseas last year, those same people will simply spend their money on holidays in Thailand this year, same as every other country.

 

"the number of Thais travelling overseas (2018) were 8.79 million last year, up 7.23 per cent and they spent a combined worth Bt276 billion". https://www.nationthailand.com/Tourism/30349409

No, they won't simply spend their money on holidays in Thailand. Of those 16%, a lot of them will have lost their jobs or be concerned about losing their jobs or simply receiving no end of year bonus. Others won't want to stay in a hotel with foreign guests due to a perceived risk of COVID. Others will save their money for an overseas trip next year. Others will do a trip in Thailand, but it will be to see relatives where they sleep in their spare room and cook their own food.

 

Of course a bit of domestic tourism might help a bit, but they'll need to officially open up inter provincial travel first. Officially removing the ridiculous, insulting TM30 reporting requirements would help getting foreigners and their families travelling domestically as well.

11 hours ago, snoop1130 said:

The export- and tourism-driven economy may shrink 5% to 6% this year, the worst since the 1997-98 Asian financial crisis due to the outbreak, the agency has said.

What coolaid are these people drinking? Only 5% to 6% this year? They are hallucinating. Let's factor in the draught and the extreme loss of jobs over the whole country and see what the final figures will be.

I wonder if the concept of free visas and reducing the value of the baht has crossed their minds?  Not really sure how countries actually control the currency they issue but I am assuming they can.  And heck, how about nationalizing Thai Air and offering reduced fares to tourists that have confirmed bookings for a period of time in hotels in the tourist areas?

 

Doing that AND making it clear they want Euro/Yank/Aussie etc tourists would go a long way to restoring their tourist industry.  I don't know.  Probably good reasons this wouldn't work.  ????

21 minutes ago, owl sees all said:

4k a night!!!???

 

People must be bonkers to pay these rates. Up here in Isaan, 4k will see you OK for a month.

 

Some, have more money than sense. Hua Hin can be nice, but when I was there I paid 400 Bhat a night.

But not everyone lives full time in Issan. Some people work full time in Bangkok, get a couple of weekends away at the beach every month and don't want to spend that time killing bugs in a 24 square metre room that uses a table cloth for curtains.

 

1 hour ago, Sharp said:

Do anyone honestly think 'domestic' customers are the short term answer!?

 

They know the real price of things and seen most of the sights already so 

 

Yep that'll work!! 

The article in no way implies domestic tourism is THE short term OR long term "answer"--to anything.

 

The article in no way implies that domestic tourism is a "replacement" for international tourism.

 

But it IS a significant part of the market. Is it a good time to start thinking about how to revive this market? Of course, and that's what they're doing. Might it help? Yes.

 

The problem with our posters is that TAT: TVF has long refused to recognize this market at all and insist that the ONLY tourism is international tourism exists. Further, only one particular group is recognized as consisting of international tourists.

 

Hence all the silly straw man arguments and usual attempts to hijack the topic.

 

1 hour ago, cracker1 said:

I am surprised to note Thai Airways web - page is closed so it's not possible to make a booking for later this year or next year or any other time ?

I know the Company is in financial strife but surely they should be promoting a product somewhere ?

I heard that they had gone bankrupt and the country is heading that way as well factories are closing or moving to neighbouring countries another major car manufacture is closing up shop there are millions unemployed and I would be amazed if foreign tourism was back up and running this year . 

Even if Thais do decide to holiday, where are they going to stay? Many hotels are closed and many staff laid off, so the choices will be limited.

21 minutes ago, JonnyF said:

But not everyone lives full time in Issan. Some people work full time in Bangkok, get a couple of weekends away at the beach every month and don't want to spend that time killing bugs in a 24 square metre room that uses a table cloth for curtains.

 

Stayed in plenty of nice places for far less than the 4k previously mentioned.

Average 4k? I think not 1.5-2k possibly.

5 minutes ago, BigStar said:

The article in no way implies domestic tourism is THE short term OR long term "answer"--to anything.

 

The article in no way implies that domestic tourism is a "replacement" for international tourism.

 

But it IS a significant part of the market. Is it a good time to start thinking about how to revive this market? Of course, and that's what they're doing. Might it help? Yes.

 

The problem with our posters is that TAT: TVF has long refused to recognize this market at all and insist that the ONLY tourism is international tourism exists. Further, only one particular group is recognized as consisting of international tourists.

 

Hence all the silly straw man arguments and usual attempts to hijack the topic.

 

Agreed, many Western expats imagine themselves as being totally responsible for keeping the Thai economy afloat, it would crash if they all pulled their funds from Thai banks and unless Westerners visit the country quality tourism will collapse.....it's time many re-evaluated their true worth to the country, things have moved on from the 1970's.

I stopped visiting tourist areas as soon as I found out about the TM30

1 hour ago, BobbyL said:

Interested to see if this actually does anything. I definitely can't imagine a lot of Thais will be desperate to go on holiday in Thailand over the coming months. A few reasons might be children returning to school, loss of income / job, rainy season, health concerns etc.

 

Having a look on websites like Agoda and Booking recently I also noticed that there seems to be very little price drops. I would happily go away somewhere in Thailand for my summer holiday now but I definitely would be expecting a price reduction. 

Price drop, not likely, Greed will always rule!

6 minutes ago, Abs14 said:

Stayed in plenty of nice places for far less than the 4k previously mentioned.

Average 4k? I think not 1.5-2k possibly.

Yes I agree. You can get a decent room for 2000 Baht. But the 400 Baht that the previous poster mentioned gets you a shoebox with a 1980's TV and a wardrobe that looks like a Chinese copy of MFI's factory seconds.

 

My point was that someone who pays 4k doesn't necessarily have "more money than sense" as the previous poster implied.