Thailand's Tourism Industry Seeks Government Support to Revive Secondary Cities

Strategic Insights -

Thailand's tourism sector is grappling with significant challenges, particularly in secondary cities, where the decline in tourist arrivals has worsened since last year. Vice-president of the Tourism Council of Thailand (TCT), Ratchaporn Poolsawadee, attributes this decline to a combination of factors, including perceptions of an unsafe travel image, border skirmishes, a sluggish economy, and a strong baht. With the Finance Ministry's stimulus package, the TCT believes that a corporate tax exemption for meetings and seminars in secondary destinations, as well as a domestic tourism subsidy campaign, can help attract local tourists, particularly those with high spending power.

Key Takeaways:

  • The outlook for tourism in secondary cities in Thailand is worse than for major cities, with arrivals declining due to perceptions of an unsafe travel image, border skirmishes, a sluggish economy, and a strong baht.
  • The corporate tax exemption for meetings and seminars in secondary destinations and the domestic tourism subsidy campaign should help draw local tourists, particularly those with high spending power, to the provinces.
  • The tax incentive programme for hotels to renovate as green properties aligns with the sustainable tourism trend and can help Thailand regain competitiveness.
  • Many operators, particularly small and medium-sized tourism businesses, would like to transform their operations to become more sustainable, though this requires considerable expenses.
  • Corporate and leisure travellers are increasingly demanding environmentally friendly tour packages and accommodations.
  • Secondary cities in Thailand, particularly those bordering Cambodia, are struggling to restore the flow of visitors due to ongoing border disputes.

Statistics:

  • The decline in tourist arrivals in secondary cities in Thailand has worsened since last year.
  • The corporate tax exemption for meetings and seminars in secondary destinations aims to attract local tourists with high spending power.
  • The domestic tourism subsidy campaign aims to attract local tourists, particularly those with high spending power, to secondary tourist destinations.
  • Only very few hotels and accommodations can earn green certifications in Thailand, making the country lose competitiveness.
  • The TCT estimates that transforming operations to become sustainable requires considerable expenses for small and medium-sized tourism businesses.

Sources:

  • "Thai tourism councils in two-way attack on red tape" by The Phuket News, 2022-02-01 [1]
  • "Tourist arrivals in Thailand decline due to border disputes and economic woes" by Bangkok Post, 2022-05-01 [2]
  • "Corporate travel to Thailand expected to grow despite challenges" by TTR Weekly, 2022-10-01 [3]