Economy Thailand Eyes Infrastructure Boost to Counter US Tariff Effects

[snoop1130]

Picture courtesy of Bangkok Post

 

The US's tariff policy is casting a shadow over Thai tourism, sparking concerns of reduced spending from key markets. However, this impact is not expected to fully unfold until 2026, as many tourists have already booked holidays for the upcoming high season.

 

Tourism leaders urge the Thai government to leverage this moment to upgrade infrastructure and develop new attractions to stay competitive, especially as Vietnam ramps up its own tourism investments. A swift implementation of the 350-million-baht chartered flight incentive is seen as crucial to maintain tourist numbers.

 

Rangsiman Kingkaew, president of the Tourism Council of Phuket, highlighted that economies such as South Korea and Japan are feeling the strain of new US tariffs, despite ongoing negotiations through the end of this month. The persistent trade tensions between the US and China could also mean higher costs for American consumers, potentially impacting travel spending, he said.

 

Domestic tourism, which bolstered the sector during the low season, faces challenges from a 36% tariff imposed on Thailand, affecting exports and GDP growth. "These developments will have a profound impact on global tourism," Mr Rangsiman warned.

 

A major slowdown is anticipated next year since many tourists have already confirmed their travel plans for the high season. Mr Rangsiman suggests the government seize this chance to shore up the sector, tackling issues like safety perceptions and unfinished infrastructure projects.

 

Thailand's competitors, such as Vietnam, have been proactive with significant investments in attractions and infrastructure. Meanwhile, Thai tourism remains largely dependent on its existing appeal.

 

Thanapol Cheewarattanaporn, president of the Association of Thai Travel Agents (Atta), notes that tariffs could also affect forward bookings, particularly from short-haul and Chinese markets, during this year's latter half. The short-haul segment is critical, making up over 70% of inbound visitors.

 

Mr Thanapol expressed dissatisfaction regarding the delay in launching the 750-million-baht "Summer Blast China & Overseas Market" chartered flight programme. Chinese travel agents are hesitant to market tours to Thailand without clear incentives, he said.

 

"Inbound tourism promotions by other countries, like China’s visa-free entries and travel packages, pose stiff competition," Mr Thanapol stressed. "The longer this initiative remains stalled, the more the tourism industry will suffer."

 

As the tariff situation evolves, the focus on strategic upgrades and timely incentives becomes ever more pressing for Thailand to sustain its tourist influx.

 

  Adapted by ASEAN Now from Bangkok Post 2025-07-10

 

 

[ozz1]

They should have thought of this a long time ago Vietnam is killing them and it's cheaper because of the baht

[0ffshore360]

1 minute ago, ozz1 said:

They should have thought of this a long time ago Vietnam is killing them and it's cheaper because of the baht

Been there have you ? Still there are you ?

Most tourists  to Vietnam are one timers . Wonder why ?

4 from 5 to Thailand come again. Wonder why?

 

 

[Isaan sailor]

Vietnam reduced their tariffs.  Why didn’t Thailand?

[norsurin]

7 hours ago, Isaan sailor said:

Vietnam reduced their tariffs.  Why didn’t Thailand?

Because their so gready.

[anchadian]

And along came Thaksin deputizing for his daughter:

BREAKING: Thaksin Enters Phitsanulok Mansion to Discuss US Import Tariffs with Thailand Team In an unprecedented move, former PM Thaksin Shinawatra arrives on Friday morning, July 11, at Phitsanulok Masion to discuss with Thailand team, together with the Prime Minister's policy advisors

https://x.com/KhaosodEnglish/status/1943491653261799571

 

[NoDisplayName]

17 hours ago, snoop1130 said:

tackling issues like safety perceptions and unfinished infrastructure projects

 

And you needed TACO tariffs to incentivize what you should'a already been doing anyways?

[garygooner]

17 hours ago, snoop1130 said:

However, this impact is not expected to fully unfold until 2024,

Back to the future!  

[connda]

17 hours ago, snoop1130 said:

The US's tariff policy is casting a shadow over Thai tourism, sparking concerns of reduced spending from key markets. However, this impact is not expected to fully unfold until 2024, as many tourists have already booked holidays for the upcoming high season.

"However, this impact is not expected to fully unfold until 2024..."

Ya don't say.  Time traveling I see?

[Victor Laszlo]

Money number one...

[HappyExpat57]

While I disagree with the ham-handed approach US has taken to global tariffs, we've all seen the unfair business practices Thailand has taken on items imported from anywhere outside LOS. I usually upgrade my computers every year, and wait until I fly to the US in order to save significantly. Import taxes are deal breakers on many products and Thailand needs to stop being too greedy.

[khunPer]

18 hours ago, snoop1130 said:

However, this impact is not expected to fully unfold until 2024, as many tourists have already booked holidays for the upcoming high season.

Seems like "many tourists" are travelling in a time machine...

[WHansen]

I doubt the tariffs will have much effect on international tourism, however, the state of the country and how it is run probably will.

[bkk6060]

46 minutes ago, WHansen said:

I doubt the tariffs will have much effect on international tourism, however, the state of the country and how it is run probably will.

Exactly.   Gots to blame it on something.

[DLock]

If it helps reduce import fees for my Jordans, motorcycle parts, supplments and tech stuff...I'm all for it.