Thailand Tourism Faces a Shortfall in 1.2tn Baht Spending Target

[webfact]

 

Thailand’s domestic tourism spending is projected to fall short of the government’s ambitious 1.2 trillion baht target, owing to economic concerns and rising travel costs, according to the Tourism Authority of Thailand (TAT).

 

Speaking on the matter, Somradee Chitchong, TAT's Deputy Governor for Domestic Marketing, expressed confidence that domestic trips would hit 210 million this year, surpassing their initial target of 200 million.

 

However, she acknowledged that the 1.2 trillion baht revenue goal might be out of reach due to persistent economic issues from earlier in the year.

 

Tourism and Sports Minister Sermsak Pongpanit indicated at a recent Association of Thai Travel Agents’ meeting that the coming six months would be a critical period for the tourism sector to aim for the revised revenue target of 3.5 trillion baht, elevated from the earlier projection of 3 trillion baht.

 

He mentioned the challenge of increasing domestic revenue from the initial goal of 1.08 trillion baht to 1.2 trillion baht.

 

Somradee pointed out that local tourists have curtailed their shopping expenses amidst economic uncertainties. "Many tourists visited local shops but prefer contacting operators’ online stores to purchase products later, which delays spending," she explained. Elevated airfares have also eaten into tourists' budgets, resulting in less spending on shopping during trips.

 

She observed that while people continue to travel, they are exercising greater financial caution. Even those not directly affected by economic downturns are influenced by negative news and stock market uncertainties, prompting reduced travel spending. Interestingly, affluent travellers are choosing destinations with weaker currencies, like Japan.

 

The Tourism and Sports Ministry’s data on spending—excluding transport costs from the origin and focusing on expenditures at the destination such as hotels, shopping, and dining—suggests that this year's overall revenue growth will be modest.

 

In efforts to stimulate the market during the low season, TAT is backing the upcoming Thai Teaw Thai Fair, set for June 27 to 30, aiming to achieve at least 200 million baht in transactions over the four-day event. 

 

Picture courtesy: Bangkok Insiders

 

-- 2024-06-28

 

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[JoePai]

Maybe the TAT crystal ball does not always speak the truth

[daveAustin]

As usual these tat (good one) numpties are away with the fairies. Yes people spend less now on travel because everything is so much more expensive and the out of touch government is making peoples’ lives miserable. Staying home and Shopping online for Chinese tat (again) is easier. 

[hotchilli]

2 hours ago, webfact said:

However, she acknowledged that the 1.2 trillion baht revenue goal might be out of reach due to persistent economic issues from earlier in the year.

Projections often change after the fact.

when fact becomes reality

[ikke1959]

More holidays are needed now...instead of less and paying people a decent salary, so that they have money to travel... Nowadays everything is getting more expensive while the salaries are frozen, How can you expect that people who have already hardly enough for daily food and paying bills can spend more.. Thai people don't live all in luxury villas, drive expensive cars, and have extreme expensive watches... like many super rich, elite business men and Government officials.... Open your eyes please 

[Chris Daley]

Wow a unicorn plushie and tiny pink dresses.  Thats how to attract the male expats.

[Gknrd]

When I am down a few trillion I just put it on my Visa..  What's in your wallet Thailand... 🙂

Edited Friday at 04:18 PM by Gknrd

[carlf]

Given the info from the Thai government that they now want to make my life as a retiree in Thailand much more complicated with a tax declaration, and possibly paying taxes here, I've decided to curtail my time in Thailand to under 180 days per year, so I'm clearly traveling less and spending less in Thailand than the prior years.  I suspect that I'm not the only one.  It's possible that they're desire to grab more money from the foreigners just might back fire on them.

[Mike Lister]

The article only refers to domestic tourism, not international. Given the Thai economy is in the doldrums, is it any wonder that people aren't spending on travel.

[john donson]

specially if TAT keeps asking for hundreds of millions, well to try to attract billions and trillions

[daveAustin]

4 hours ago, carlf said:

Given the info from the Thai government that they now want to make my life as a retiree in Thailand much more complicated with a tax declaration, and possibly paying taxes here, I've decided to curtail my time in Thailand to under 180 days per year, so I'm clearly traveling less and spending less in Thailand than the prior years.  I suspect that I'm not the only one.  It's possible that they're desire to grab more money from the foreigners just might back fire on them.

Possibly but that’s a different topic. Farang foreigners are a drop in the ocean regards local travel. They couldn’t care less about their own so will certainly not give a monkey’s chuff about you or me. This whole thing is just TAT tat. 

[BangkokReady]

On 6/29/2024 at 6:49 AM, carlf said:

It's possible that they're desire to grab more money from the foreigners just might back fire on them.

 

They seem to be stuck in a kind of "they need us more than we need them", passive income obsession.