Thailand eyes pre-pandemic tourism levels by 2024, revamps VAT refund process

[webfact]

Thailand, a popular tropical destination, is anticipating a return to near pre-pandemic tourism levels by 2024. In 2019, the country welcomed nearly 40 million overseas visitors, contributing 12% to the nation’s GDP.

 

However, the Fiscal Policy Office projects a recovery to approximately half that number this year, following the pandemic, and predicts a return to 90% of the 2019 levels in 2024.

 

Thailand’s diverse natural and cultural offerings, along with compelling shopping opportunities, draw tourists worldwide. Duty-free shops in the arrival and departure zones of Suvarnabhumi Airport serve these travellers. However, the Finance Ministry is proposing the cancellation of duty-free shops for arrivals, encouraging tourists and returning Thai citizens to spend within the country.

 

The proposal is backed by King Power, the sole operator of duty-free concessions, which will continue to pay the same concession fee.

 

The removal of duty-free shops on arrival aims to support domestic stores that do not offer tax exemptions. “Regular stores in the country will benefit from the policy,” said permanent finance secretary Lavaron Sangsnit. “Abolishing duty-free shops in arrival areas of airports will stimulate domestic spending among locals and foreign tourists.”

 

In addition to this, the Finance Ministry is considering reducing the beverage tax on imported and local wines, spirits, and beers and relaxing the opening hours at night entertainment venues in major tourist districts.

 

The measures, aimed at boosting tourism and domestic spending, have received in-principle approval from the cabinet. The goal is to increase income and generate jobs in tourism-related businesses such as restaurants, hotels, entertainment venues, and transport service providers, reported Bangkok Post.

 

by Alex Morgan 

Picture courtesy of Varuth Hirunyatheb

 

Full story: The Thaiger 2023-12-21

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

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[hotchilli]

2 hours ago, webfact said:

Thailand, a popular tropical destination, is anticipating a return to near pre-pandemic tourism levels by 2024. In 2019, the country welcomed nearly 40 million overseas visitors, contributing 12% to the nation’s GDP.

Delusional.

[mfd101]

2 hours ago, webfact said:

the Finance Ministry is considering reducing the beverage tax on imported and local wines

Ha! I knew it. Ready by 1 Jan, I'm sure.

[BestB]

May be only to me , but this high season does not look very high, hotels still have plenty of rooms and streets are not full of people.

 

so to me looks like numbers are down from last year but the big heads seem to think numbers are growing 

[Toby1947]

More chance of a tax rebate 🤣😂🤣

[Frankie baby]

THE BIG PARTIES OVER.

 

Get use to it?

[dlclark97]

It is hard for me to comprehend the logic behind some actions being taken to improve the Thai economy.  Hardest to understand is the proposed taxing of money imported by foreigners and even Thais working remotely that is slated to begin 1 January.  Many foreigners import many thousands of dollars and other currencies annually that are mostly spent locally thus improving local economies.  Thai wives, girlfriends often with children, close members of their families and many others plus numerous local charities are supported with foreigners' monies.  What will happen to these people when the foreigner's income is heavily taxed.  The only thing I see happening is that far fewer people who would normally spend many thousands and 10's of thousands of dollars every year living here for the rest of their lives will even think of Thailand as a place to retire and spend their hard-earned money.

[smew]

Simply impossible, as most regular returnies have changed destinations,  not a chance in hell by 2024.. maybe by 2026 

[blazes]

It's all about inflation.  The rate of inflation growth has come down considerably since the almost double digits of 2022.  But inflation itself continues to grow at an unacceptable pace worldwide.  Ask anyone who goes shopping for food.

 

Ergo, the disposable income of all those missing tourists is just not available to sustain the Thai economy at the level it once enjoyed.

[topt]

3 hours ago, webfact said:

The proposal is backed by King Power, the sole operator of duty-free concessions, which will continue to pay the same concession fee.

So what is it they are getting in return - otherwise they should be against this tooth and nail?

[topt]

46 minutes ago, BestB said:

May be only to me , but this high season does not look very high, hotels still have plenty of rooms and streets are not full of people.

 

so to me looks like numbers are down from last year but the big heads seem to think numbers are growing 

From my and some friends perspectives we would have to disagree. Golfers are definitely higher than last year and evenings out in bars seem busier.

[TheFishman1]

It’s difficult for me to believe anything that they say day. It’s up the next day it’s down Chinese are up Chinese are down TIT.

[4MyEgo]

3 hours ago, webfact said:

Thailand’s diverse natural and cultural offerings, along with compelling shopping opportunities, draw tourists worldwide. Duty-free shops in the arrival and departure zones of Suvarnabhumi Airport serve these travellers. However, the Finance Ministry is proposing the cancellation of duty-free shops for arrivals, encouraging tourists and returning Thai citizens to spend within the country.

 

Um, have they taken into consideration that mortgage interest rate have risen 14 times in most countries, rents have gone up 50% + in some countries, utilities, food, inflation have all risen, except for wages, and these guys anticipate 2019 numbers.

 

Yeh, good luck with that one, no one has any spare money and their credit cards and line of credits on their mortgages are maxed out, however, they might get a few Bitcoin tourists......LOL

 

[Hanuman2547]

Although arrivals are important the better gauge is the number of days that a tourist stays in country.  The longer they stay the more they spend for everything.  That's why tourist days are more important then arrivals. 

 

As far as reaching pre-pandemic levels by 2024, that isn't happening.  

[trainman34014]

More Wet Dreams !

[Jiggo]

By Monday next?

To hope's on that one, No Hope and Bob Hope...

[TruthinThailand]

Oh dear oh dear, once again stop the scams, stop the rip offs and lock up Fat Jumbo the Phuket Jet Ski scammer. Screen their trials and sentencing live on CNN then maybe confidence will start to recover!

[maddox41]

Its hilarious i read today in the Bangkok post the Tourism is down big time in 2023 hence why the  pm wants travel l insurance for all tourists free  the  90 day joke visa on arrival for only Russians and they are in a middle of a  war wtf  thats a strange one 

And lastly tourists are going to other places Bali New Zealand Vietnam Japan  not Thailand but the goverment just forcuses on the Chinese, Russian and Indians  tourists not the quality ones 

[StayinThailand2much]

4 hours ago, webfact said:

Thailand, a popular tropical destination, is anticipating a return to near pre-pandemic tourism levels by 2024. In 2019, the country welcomed nearly 40 million overseas visitors, contributing 12% to the nation’s GDP.

 

Here we go again... Only because some wishful-thinking Thai bureaucrats dream of glorious times in the past, doesn't mean that it will happen again (anytime soon)... Sometimes it pays to look at a world map to realise that Thailand is not the center of the world, and reading or watching international news to know that the world of 2019 is unlike that of 2023 or 2024...

 

(Pssst, you can, partially, thank your beloved overlords further up north for developments over the past few years, possibly with repercussions for the rest of the decade.)

[Dogmatix]

They keep going on about tourism recovery but we couldn't care less. If you do your promotions and offer visa free travel, there is nothing much more to do about it. Just wait and see.  It depends on the economies of the countries of origin, especially China.

 

Far better to worry about things you can change, like upgrading Thailand's appalling public education to facilitate more foreign investment and ability to speak English and work in higher value added businesses.

[StayinThailand2much]

34 minutes ago, Hanuman2547 said:

Although arrivals are important the better gauge is the number of days that a tourist stays in country.  The longer they stay the more they spend for everything.  That's why tourist days are more important then arrivals (...)

 

True. Fifteen years ago, or so, the average tourist stayed for more than 3 weeks, but now it is only 9 days. - What does that tell you about Thailand's appeal to international tourists?

[traveller101]

Please can we get a TAT free day every now and then- I am sick and tired to of their almost daily predictions, Marketing campaigns addressing particular countries, targeting a particular type of visitors, assumptions, projected revenue targets, optimistic clap trap and delirious euphoria.

Generally wishful thinking, pie in the sky, take your pick ..... except publishing actual facts about true numbers of tourists and approximate $$$$$ spent using accurate calculators (which automatically exclude the faulty hardware used by TAT) available everywhere.

[Hanuman2547]

7 minutes ago, StayinThailand2much said:

 

True. Fifteen years ago, or so, the average tourist stayed for more than 3 weeks, but now it is only 9 days. - What does that tell you about Thailand's appeal to international tourists?

I think most of us already know that answer.  Too bad the TAT doesn't!

[Cabradelmar]

Schizophrenia with a heavy dose of delusion and disorganization... that is every agency/ministry, in a nutshell. Good luck going from somewhere south of 30 million visitors (probably 28 million, using a bit of creative counting) in 2023, to 40 million in 2024. Do these people not follow world news, or even their own news (press releases) about themselves. LOL.

[mfd101]

23 minutes ago, traveller101 said:

Please can we get a TAT free day every now and then- I am sick and tired to of their almost daily predictions, Marketing campaigns addressing particular countries, targeting a particular type of visitors, assumptions, projected revenue targets, optimistic clap trap and delirious euphoria.

Generally wishful thinking, pie in the sky, take your pick ..... except publishing actual facts about true numbers of tourists and approximate $$$$$ spent using accurate calculators (which automatically exclude the faulty hardware used by TAT) available everywhere.

In a country where status is more important than competence, appearances more important than reality, optimistic predictions with little or no foundation are the norm for all governments and their bureaucrats.

 

It is the 'system' that produces unwalkable footpaths, massive holes in roads, and unending poverty for 50% or more of the population.

[mfd101]

1 hour ago, dlclark97 said:

Many foreigners import many thousands of dollars and other currencies annually that are mostly spent locally thus improving local economies. 

Just about ENTIRELY spent within Thailand, I should think. Why else do we change our home currencies in to baht?

[Mike Lister]

2 hours ago, dlclark97 said:

It is hard for me to comprehend the logic behind some actions being taken to improve the Thai economy.  Hardest to understand is the proposed taxing of money imported by foreigners and even Thais working remotely that is slated to begin 1 January.  Many foreigners import many thousands of dollars and other currencies annually that are mostly spent locally thus improving local economies.  Thai wives, girlfriends often with children, close members of their families and many others plus numerous local charities are supported with foreigners' monies.  What will happen to these people when the foreigner's income is heavily taxed.  The only thing I see happening is that far fewer people who would normally spend many thousands and 10's of thousands of dollars every year living here for the rest of their lives will even think of Thailand as a place to retire and spend their hard-earned money.

 

Tourism is essential to household consumption because it provides income across communities. But the value in any other sense is negligible, it is certainly not very valuable to maintaining the foreign currency reserves. This year will see 27 million tourists each spend an average of 45,000 baht per stay, that's THB 1.2 trill. or USD 35.5 bill. One months exports on the other hand is worth around USD 25 bill. and since export bills are mostly settled in USD, one years worth of tourism is equal to 1.4 months of goods exports. As you can see, from a foreign currency reserves and balance of trade standpoint, tourism is not that important in the bigger picture. A similar picture emerges if we look at foreigners who live in Thailand and import funds from overseas. Again, that money is useful at the consumer consumption level of GDP and in helping poorer communities survive but in terms of the Thai economy, it is not a big or meaningful number. Foreigners here have long imagined their role in keeping the Thai economy afloat is much more grand than it really is.

 

 

 

[Jumbo1968]

I have been out today, I spoke with some Stall Holders in Mike Shopping Mall and The Night bazaar, they all said the same very quiet including on an evening.

 

Bar owners must be expecting plane loads of tourists as they are now adding more bars to Made In Thailand.

 

2019 was a one off with numbers made up by the Chinese, their economy has slumped therefore the tourists numbers from China will be down.

Europeans, looking at the flight prices they have not decreased by much and Thailand forgets many countries have economies which are in recession.

[Mike Lister]

19 minutes ago, Jumbo1968 said:

I have been out today, I spoke with some Stall Holders in Mike Shopping Mall and The Night bazaar, they all said the same very quiet including on an evening.

 

Bar owners must be expecting plane loads of tourists as they are now adding more bars to Made In Thailand.

 

2019 was a one off with numbers made up by the Chinese, their economy has slumped therefore the tourists numbers from China will be down.

Europeans, looking at the flight prices they have not decreased by much and Thailand forgets many countries have economies which are in recession.

Every stall holder always says that, it's the standard reply to a farang when they ask hos is business, I guess it's meant to elicit empathy .

 

 

[spidermike007]

Sheer ridiculousness. Is Thailand making any effort, on any level to address the issues that were present, pre-Covid? Traffic and public safety, air quality, road congestion, luxury taxes, wine taxes, jet ski scams? I could go on all day. My guess is nothing is being done to address anything, and every issue they currently face is being blamed on Covid. Now, they have a real scapegoat, and looking within for the source of any of the problems is less likely than ever. Zero change. The extreme hubris and arrogance on the part of the officials seems to result in a level of blindness that is nearly total. They literally seem incapable of learning. The fact they this administration picked department heads from the absolute bottom of the barrel, never considering merit for even a moment, did not help. 

And what do the numbers actually mean? How many are expats going back and forth? Does it include Burmese, Cambodian and Malaysian tourists and workers? Does it include business travel? How many affluent travelers and how many young backpackers? Such an extreme lack of information within these numbers the desperate TAT and administration trots out. No improvements or sacrifices were made. Nothing appears to have been learned.