The tourism industry is reducing arrival estimates by 2 million due to political uncertainty.
The delay in the formation of a new government in Thailand has led to a revision in the Tourism Council of Thailand’s (TCT) estimate of tourist arrivals for this year. The TCT now expects 28 million arrivals, down from the original estimate of 30 million. This adjustment is expected to reduce tourism revenue by approximately 100 billion baht. The delay in the disbursement of the tourism promotion budget during the low tourism season in the third quarter is one factor contributing to this revenue shortfall. Concerns about political protests are another factor potentially discouraging tourists from visiting Thailand. Although the targets for tourist arrivals in the first and second quarters have been met, the projected 8 million arrivals for the third quarter are likely to be missed by about two million. The TCT remains optimistic that the target of 9 million arrivals for the fourth quarter will be met. However, the overall target of 30 million arrivals for the year will likely be missed by about two million. The Tourism Authority of Thailand (TAT) also shares concerns about political uncertainties impacting tourism for the remainder of the year. However, the TAT will continue promoting tourism during the low season with their available resources. The TAT has adjusted its plan for the domestic tourism market, encouraging Thai tourists to go on more trips instead of spending more per trip. For the first seven months of the year, domestic tourism has generated 478.4 billion baht in revenue from 135 million trips. TAT governor Yuthasak Supasorn expects a challenge in meeting the target of at least 25 million arrivals in the remaining five months due to a global economic slowdown and political uncertainties in Thailand. The top five countries contributing to foreign arrivals in Thailand during the first seven months were Malaysia, China, South Korea, India, and Russia.
