Thai tourism sector How to continue

The Covid outbreak is set zero in the Thai tourism sector. How long this recovery will be sustained and how much volatility can be accommodated depends on the choice of pathway to get out of this crisis.

Thai shouldReposition a new tourism sector under 2 principles, namely (1) “Value over volume” approach and (2) Diversification approach, starting from building on activities that Thailand has the potential to compete in the past. Along with creating new activities that are expected to increase demand

In the future , the tourism sector should focus on expanding the group./Frequency of both Thai and foreign tourists in the region to be more diversified in 3 groups: health tourism Tourism that can experience the life of local people and work-related tourism to generate stable income and more balanced distribution

An important helper to help change is the unity of government agencies and policy driving mechanisms. Infrastructure for both transportation and tourism platforms and measures to support business adaptation, such as funding, regulatory adjustments, and up-skilled workers.

​Since the beginning of last year, the Thai tourism sector has been severely affected by COVID-19. by analysts This year, Thailand /xn--72c5ab8bza6azdwe3cf.cc may have less than 500,000 foreign tourists (from nearly 40 million in 2019.that generates approximately2 trillion baht or 11% of GDP) looking forward The COVID outbreak will not only have a short-term impact. but will change the behavior of tourists around the world Increased emphasis on health and hygiene It’s a safe trip avoiding the crowds. travel closer prefer to travel with niche travel more than the traditional mass travel and focus on using technology to increase comfort throughout the journey The main problem of the country is when the tourism sector will recover. We still have to take this opportunity. Review and restructure the tourism sector in order to return to growth and drive the Thai economy sustainably in the post-Covid world.

Interesting issues from the seminar “Fah Lang Fon, a New Dimension for Thai Tourism” 1 jointly held by the Bank of Thailand and Visa International (Thailand) Co., Ltd. in June 2021, has presented the article Revitalizing Thailand’s tourism sector: In search of enablers for future sustainability point to the problem that traditional tourism models in Thailand could increase the vulnerability and volatility of the tourism sector in the post-COVID world. both from generating income through excessive dependence on the number of foreign tourists while tourists spend less There is also a problem of concentration in both the nationality of tourists. Old tourist attractions and travel periods, the article presents a new tourism model underTwo principles are (1) “Value over volume” approach and (2) Diversification approach to increase the spending value of foreign tourists. If it can be increased from 48,000 baht per person to 60,000 baht, it will allow Thailand to receive the same income but with only 32 million tourists, as well as to increase the balance in the tourism sector in various dimensions, such as distribution of sources of income. to rely on a more diverse tourist market to stabilize tourism income and help mitigate future risks as well as increase the distribution of income through supporting tourism in secondary cities more And most importantly, tourism must not create as much environmental costs as in the past.

In addition, the tourism sector restructuring to this new model It will create more investments in the tourism sector, such as digital investments to support the Contactless trend and tourism platforms. improvement of tourist attractions and investment in the transportation system From the present, Thailand invests only 13% of tourism revenue. Compared with other competitor countries such as the Philippines and Malaysia, which accounted for 21% and 27% respectively, and will result in the allocation of production resources. Both capital goods, machinery and labor go where they will get the best results and will contribute to increasing productivity. In this regard, the tourism sector has been transformed to be more dependent on capital factors. With the tourism sector reliant on natural resources and large labourers (more than 7 million people, accounting for 20% of total employment), during the transition some workers needed to adapt their skills to new trends. While surplus workers need to be cared for, they can transition to other service sectors that may become more popular in the future, such as Hospitality and wellness related services.

Thailand should reposition the tourism sector by focusing on tourism groups that are expected to have increased demand This starts by expanding on activities that Thailand has the potential to compete in the past (Old legacy), such as nature or culture. along with creating new activities such as health tourism Tourism to experience local life that adds value and incentives. along with the expansion of the group / frequency of tourism of Both Thai and foreign tourists in the region (Regional travelers) such as Japan, Taiwan, due to the trend of behavioral changes in tourists choosing to travel more near distances, especially tourists who prefer to travel on their own.(Free Independent Travelers: FIT) or Customized tour group , which will spend about 51,000 baht per trip per person, higher than the tour group at about 39,000 baht and focusing on supporting 3 main groups of tourists:

(1) Medical & wellness tourism group that will be more popular which is a group that has a cost per trip up to about 80,000-120,000 baht and create added value to the Thai economy more than 80% of the income received

(2) Green & community-based tourism group , which will stimulate tourism in secondary cities and reduce over-tourism. Moreover, income from tourists in this group also creates added value to the economy about 60-80% of the income received. as well

(3) Business groups such as investors and professional staffs who come to work in Thailand Or come to organize seminars in Thailand, including work from anywhere groups and followers, which are potential groups that spend high because they tend to stay for a long time (Expenses per trip for long-stay groups, accommodation for more than 14 days ≈ 75,000 baht) and tend to increase in accordance with the policy of attracting foreign investment and personnel to work in Thailand.

This is because the Thai tourism sector has various related businesses. The key point in driving the restructuring is centralized and interconnected policies. This requires cooperation from all parties in the ecosystem.

• The labor sector must increase skills or adjust their aptitudes in accordance with new trends. Meanwhile, the business sector has to speed up adjustments to places, routes, and tourism activities, including accommodation, to increase the attractiveness of secondary cities and the low season. To attract a variety of tourists and spend higher

• The government sector has clearly defined development directions, goals and plans. This is set out in the 13th National Economic and Social Development Plan and to achieve practical results. The government must (1) have a united driving agency. so that policies in all dimensions are consistent and can be implemented in a timely manner; (2) create a mechanism for driving a clear strategic plan Incentive policies, such as visitation or other prices and quotas, may be considered to restructure the tourism sector to meet more spatial and time-bound goals, as many countries such as the United States set. Entry to national parks during the peak season is twice as high as normal, and the Philippines imposes a quota of 6,405 daily visitors to Boracay island (3).both the transportation system to connect the secondary cities and use technology to make tourism more Contactless and Seamless, especially upgrading the tourism platform to serve as a marketing channel to attract target tourists with a Track & Trace system to build confidence for tourists. including being a comprehensive and fast tourism sector database for the benefit of both business and policy makers; and (4) supporting the adjustment of business and labor sectors in accordance with new tourism trends. or if businesses or workers need to leave the tourism sector There must be a mechanism to facilitate adaptation to a sector that can continue to expand. to take care not to waste too many resources both financial supportdifferent rules adjustmentand Up-skilled Reskilled Labor, etc.

• People play an important role in maintaining tourist attractions to be complete and attractive. and help create a good tourism atmosphere for visitors

The Covid outbreak is set zero in the Thai tourism sector. How long will the recovery be sustained in the next phase? It depends on choosing the path to get out of this crisis. The new path, although not easy, is necessary. so that the Thai tourism sector can return to grow in the sky after the rain that is brighter than in the past

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