Bangkok: Krungthai COMPASS reveals that the trend of Thai tourism continues to recover. The group of high-quality tourists supports the Thai economy. Although the number of Chinese tourists has not fully recovered, income from the High Spending group helps compensate. It is expected that the total tourism income in 2025 will reach 1.74 trillion baht. It recommends that the government quickly remove obstacles and enhance Soft Power to attract target tourists back.
According to Thai News Agency, Krungthai COMPASS Research Center, Krungthai Bank, revealed an analysis of the future trends of Thailand's tourism sector, stating that the number of Chinese tourists, which was Thailand's main market in the past, has not fully recovered due to pressure from China's domestic economy, as well as restrictions on direct flights and long-term visa issuance, causing many Chinese tourists to choose to travel to other countries instead. Although the number of Chinese tourists is still lower than the pre-COVID level, income from quality Chinese tourists who are still traveling in still has the potential to stimulate the economy, especially those who love Thai food and cultural tourism.
It is expected that in 2025, tourism revenue will recover to 5.5% of GDP or approximately 1.74 trillion baht, similar to the pre-COVID-19 outbreak. The main driving force is the High Spending group of tourists who have high spending behavior and tend to travel to Thailand again.
Mr. Thanacha Kunsirivilawan, Senior Analyst, Krungthai COMPASS Research Center, revealed that global tourism trends are starting to change. Tourists are increasingly interested in local experiences and new places, especially from countries with purchasing power potential such as Japan, South Korea, Singapore, and ASEAN, all of which have tourists who enjoy Thai culture, Thai food, and traveling in the form of Repeat Visitor.
Krungthai COMPASS estimates that the High Spending group, which accounts for around 40-45% of all tourists, will be the main group driving tourism revenue. On average, this group of tourists spends 50-55% of their total trip expenses on food, especially Thai food and street food, which are popular among East Asian tourists.
Dr. Surasak Srikwan, Director of Krungthai COMPASS Research Center, stated that the long-term approach to increasing tourism revenue should focus on improving quality rather than quantity by creating value in tourism experiences through Thailand's soft power, whether it be food, culture or local wisdom, along with managing supply chains and infrastructure to meet the needs of target tourist groups.
However, the report identifies key obstacles that need to be addressed, including delays in visa issuance, particularly for Chinese tourists, a lack of direct flights on some routes, and the concentration of tourists in major cities, meaning secondary destinations are not being adequately promoted.
Krungthai COMPASS Research Center suggests that if we can successfully attract High Spending tourists, even though the total number of tourists is not as high as before COVID, the income will be sufficient to revive the economy, especially at the community level where the investment can be recovered quickly if the area is properly managed. An area that can accommodate only 500-1,000 tourists per year can create a worthwhile return.