Thailand, under the new leadership of Prime Minister Srettha Thavisin, is setting ambitious tourism goals to jumpstart its economy. The Southeast Asian nation is looking to rake in a staggering US$100 billion in tourism revenue in the upcoming year. A series of bold initiatives have been proposed to achieve this target, central to which is the loosening of visa regulations, especially for Chinese and Indian travelers.
Key Takeaways:
- Prime Minister Srettha Thavisin aims to boost the nation’s tourism revenue to nearly US$100 billion next year.
- Visa rules are to be eased for Chinese and Indian travelers, and longer stay durations will be offered to visitors from all countries.
- The airport operator has committed to augmenting flight capacity by 20% and speeding up immigration clearances.
- The tourism sector contributes to around 12% of Thailand’s GDP and nearly a fifth of its employment.
A Closer Look at the Proposed Changes
Chinese tourists, who were the dominant group pre-pandemic, currently face a costly and cumbersome visa application process. Such restrictive measures have directly impacted the tourist influx this year, according to PM Thavisin. On the other hand, Indian travelers, another significant demographic, are currently required to shell out 2,000 baht (US$57) for a 15-day visa on arrival. PM Thavisin, leveraging his background as the ex-head of Thai property giant Sansiri, is advocating for a revised list of visa-exempt nations and increased duration of stay for numerous international tourists. He envisions caps of 15 or 30 days for many nationalities.
Strengthening Infrastructure
In a strategic move to accommodate the expected influx of travelers, PM Thavisin met with representatives from the Airports of Thailand Public Company Limited (AOT) and multiple airlines. The discussions, held on Monday, were centered around attracting a more significant number of international tourists during the fourth quarter, which traditionally sees the highest tourist arrivals. Following these discussions, AOT has committed to the following:
- Alleviating bottlenecks to enhance flight capacity by 20%.
- Implementing measures to expedite immigration clearance procedures.
Stakeholders’ Input and Expectations
During a pivotal meeting on the island province of Phuket, which included travel-sector leaders, Thaneth Tantipiriyakij, president of the Phuket Tourism Association, highlighted a potential quick win for the tourism sector. Rather than just granting visa exemptions, Thaneth proposed that waiving visa application fees, especially for Chinese and Indian tourists, might be more beneficial. Backing his suggestion with data, Thaneth noted that while international visitors to Phuket currently stand at 70% of pre-pandemic totals, the recovery rate for Chinese arrivals lags at just 30%.
Future Projections:
Forecasts from Nomura Holdings Inc. suggest that foreign-tourist arrivals could reach 30 million in 2023, a marked increase from last year’s 11.2 million. However, the slower-than-anticipated return of Chinese tourists, despite them being the largest group of visitors last month, raises concerns.
In Conclusion
Thailand’s aggressive push towards reinvigorating its tourism sector, backed by data-driven strategies and stakeholder inputs, holds promise. The coming months will be pivotal in gauging the efficacy of the proposed changes and the country’s ability to achieve its ambitious revenue target. For more details on Thailand’s tourism strategy, visit Bloomberg.