Thailand tourism confidence gradually 'hits rock bottom'

Many unfavorable factors are dragging Thailand's tourism industry into a difficult period, as market confidence has plummeted and the number of international visitors is forecast to be lower than last year.

Thailand's tourism industry is entering a challenging period as the travel confidence index in the second quarter reached only 70, significantly lower than the pre-pandemic benchmark of 100 and a sharp decline from 79 in the same period last year.

According to the Tourism Council of Thailand (TCT), this is the result of a series of negative factors that have lasted since the beginning of the year, including safety concerns, cautious spending by tourists following the US's reciprocal tariff policies and regional events that directly affect the psychology of tourists.

A survey of 740 travel companies nationwide found that the industry had only recovered 45% of its revenue compared to 2019. The average hotel occupancy rate in the second quarter was 48%, down from 55% in the same period last year. Notably, the confidence index in the leisure sector fell to a low of 60, compared to 73 last year, reflecting a sharp decline in business expectations, according to the Bangkok Post.

The kidnapping of Chinese actor Wang Jing at a scam center near the Myanmar border and the March 28 earthquake also caused the number of Chinese tourists to Thailand to drop by more than 50%. These factors exacerbated the decline, in the context of global economic growth forecast to be the slowest in 16 years. This made international tourists, especially those affected by US tariffs, tend to choose destinations closer to the cost.

The domestic situation is also not much better as household debt in Thailand remains high, reducing the ability to spend on domestic tourism.

Tourists visit the Grand Palace in Bangkok, Thailand. Photo: Reuters.

The ongoing tensions along the border with Cambodia are expected to impact tourist provinces during the low season. While most businesses are still operating, the rate has dropped from 97% in the first quarter to 94% in the second, raising concerns about the possibility of permanent closures if the decline continues.

The TCT forecast revealed that the number of international visitors to Thailand this year could reach only 33.3 million, lower than last year and less than half the peak period before the pandemic. Tourism revenue is estimated at about 1.75 trillion baht.

In this context, TCT Chairman Chai Arunanondchai said the council has recommended the Tourism Authority of Thailand provide financial support to transport companies, especially buses, to promote inter-provincial tourism and attract domestic tourists.

However, the travel confidence index is expected to fall further to 65 in the third quarter if no timely support measures are taken. The eastern and western regions are currently the rare bright spots, maintaining their indexes at 78 and 73 respectively, thanks to their ability to attract visitors from Bangkok. But with the downward trend spreading across all six surveyed regions, the Thai tourism industry is facing an urgent need to restructure and stimulate demand more strongly than ever.

Source: https://baohatinh.vn/niem-tin-du-lich-thai-lan-dan-cham-day-post292608.html