Tourism Confidence Falters; Calls for More Government Support Rise

[webfact]

 

The tourism industry is currently in a state of distress, as the Tourism Council of Thailand (TCT) reports a significant decline in confidence in the sector. The tourism confidence index for the third quarter has dropped to 68, a steep fall from the pre-pandemic benchmark of 100, and even less than the previous quarter's 79.

 

This gloomy outlook is preventing the industry's recovery, mainly due to factors like factory closures, rising unemployment, increase in non-performing loans, and severe flooding both locally and globally.

 

In response to these challenges, the TCT is set to meet with the Tourism Authority of Thailand to advocate for increased government intervention through enhanced subsidies. Currently, they are proposing a boost in the co-payment travel scheme subsidies from 40% to 50% for the forthcoming phase.

This proposal is particularly aimed at the more remote, second-tier provinces. Chamnan Srisawat, TCT president, believes that a minimum budget of 5 billion baht could spur 5 million room bookings, bolstering domestic travel.

 

He emphasises the urgency, suggesting that waiting until the next low season might be detrimental, as 30 provinces are still reeling from recent floods.

 

The future tourism confidence index for the fourth quarter shows slight optimism with a predicted index of 80; however, uncertainties cloud this outlook. External threats like ongoing conflicts in Ukraine and the Middle East, alongside the strengthening baht, could further burden the sector.

 

Many tourism operators are experiencing revenue at a mere 47% of what was achieved in 2019. With an employment rate at 84% of pre-pandemic levels, the situation is far from stable. Occupancy rates have plummeted, particularly in regions affected by September floods, sparing only large and international hotels.

 

Chamnan's concerns highlight the pressing need for equitable recovery throughout the entire tourism supply chain, warning that the current uneven resurgence could lead to long-term instability in an industry so vital to Thailand’s economy, reported Bangkok Post.

 

Grand Palace Bangkok. File photo courtesy: Wikipedia

 

-- 2024-10-10

 

[ozz1]

Tct  tat how many of these useless departments are there? just trying to boost the governments ego

[edwinchester]

It seemed only last week that TAT were talking about a record breaking season.

[Paiman]

2 hours ago, webfact said:

This gloomy outlook is preventing the industry's recovery, mainly due to government officials having their head up their anu* and many Service providers the attitude being the Center of the Universe.

 

2 hours ago, webfact said:

 

The tourism industry is currently in a state of distress, as the Tourism Council of Thailand (TCT) reports a significant decline in confidence in the sector. The tourism confidence index for the third quarter has dropped to 68, a steep fall from the pre-pandemic benchmark of 100, and even less than the previous quarter's 79.

 

This gloomy outlook is preventing the industry's recovery, mainly due to factors like factory closures, rising unemployment, increase in non-performing loans, and severe flooding both locally and globally.

 

In response to these challenges, the TCT is set to meet with the Tourism Authority of Thailand to advocate for increased government intervention through enhanced subsidies. Currently, they are proposing a boost in the co-payment travel scheme subsidies from 40% to 50% for the forthcoming phase.

 

This proposal is particularly aimed at the more remote, second-tier provinces. Chamnan Srisawat, TCT president, believes that a minimum budget of 5 billion baht could spur 5 million room bookings, bolstering domestic travel.

 

He emphasises the urgency, suggesting that waiting until the next low season might be detrimental, as 30 provinces are still reeling from recent floods.

 

The future tourism confidence index for the fourth quarter shows slight optimism with a predicted index of 80; however, uncertainties cloud this outlook. External threats like ongoing conflicts in Ukraine and the Middle East, alongside the strengthening baht, could further burden the sector.

 

Many tourism operators are experiencing revenue at a mere 47% of what was achieved in 2019. With an employment rate at 84% of pre-pandemic levels, the situation is far from stable. Occupancy rates have plummeted, particularly in regions affected by September floods, sparing only large and international hotels.

 

Chamnan's concerns highlight the pressing need for equitable recovery throughout the entire tourism supply chain, warning that the current uneven resurgence could lead to long-term instability in an industry so vital to Thailand’s economy, reported Bangkok Post.

 

Grand Palace Bangkok. File photo courtesy: Wikipedia

 

-- 2024-10-10

 

 

[hotchilli]

2 hours ago, edwinchester said:

It seemed only last week that TAT were talking about a record breaking season.

That's what I thought... 

[Will B Good]

 

 

Why not give every tourist 10k baht on arrival.....the effect on the economy would be amazing......wouldn't it????

[UWEB]

4 minutes ago, Will B Good said:

 

 

Why not give every tourist 10k baht on arrival.....the effect on the economy would be amazing......wouldn't it????

That's not the Thai way of thinking, it's more come and handover 10k THB and go back with the same Plane.

[jippytum]

Stop boasting about the record numberof tourists expected and the record amount of money they are expected to spend. 

 If all free entry numbers are disappointing paying tourist to visit may be an option from the brains at TOT. 

 

[TroubleandGrumpy]

TAT is all lies and distortions - the truth is not what they claim it is. Imagine being a Government Agency that is funded and management bonuses paid, based on your own in-house (and very private) methods of performance management. TAT claims every arrival is a tourist and that they all spend an average of 50K here each. I dont think that the people walking over the southern border this weekend to visit friends, family or bars/girls, are spending anywhere near that amount.  3.5 million tourists from Malaysia already this year - I call that BS.

[steven100]

3 hours ago, webfact said:

The tourism industry is currently in a state of distress,

 

 

This has made my day ....    I love it   !!

[Photoguy21]

1 hour ago, Will B Good said:

 

 

Why not give every tourist 10k baht on arrival.....the effect on the economy would be amazing......wouldn't it????

Why not just let tourists be tourists instead of trying to put them into boxes of good or bad money prospects etc.

[BarraMarra]

Tomorrow a TAT spokesman will counter this statement confirming there numbers will rise to record numbers this upcoming new season.

[Will B Good]

48 minutes ago, TroubleandGrumpy said:

TAT is all lies and distortions

 

Oh the irony.

[steven100]

but next month TAT will anticipate 80 million tourists in December ....

 

so all will balance out ....  don't worry the boss about this. 

[RichardColeman]

The people who have come, are probably those returning to families, and those that needed a 'get way' after the idiotic lockdowns. Now most of those have done their travelling and its back to the normal tourists, who quite rightly are being killed by the baht, inflation in their own country and a fear of not wanting to  get stuck abroad again - maybe the TAT should sue the WHO for fear mongering. 

[soalbundy]

3 hours ago, RichardColeman said:

The people who have come, are probably those returning to families, and those that needed a 'get way' after the idiotic lockdowns. Now most of those have done their travelling and its back to the normal tourists, who quite rightly are being killed by the baht, inflation in their own country and a fear of not wanting to  get stuck abroad again - maybe the TAT should sue the WHO for fear mongering. 

First and foremost the TAT aren't looking at what is happening in the tourists homelands, inflation, unemployment, rising rent costs and general uncertainty about the future. In the UK food banks are even being used by the employed in increasing numbers  and even Germany, once the European power house, is faltering, winter is around the corner and people don't know how to pay their energy bills. An exotic Asian holiday needing expensive flights isn't on many people's radar and if it is there are cheaper countries in the area. Stop dreaming TAT and do your homework, like asking your embassies about the financial strength of the people in the main tourist countries, you might be surprised.