Travel and Tourism Industry in Thailand

You are currently viewing Travel and Tourism  Industry in Thailand

Located in southeast Asia, Thailand is the combination of inspiring temples, natural beauty, and warm hospitality and it’s grown as one of the famous tourist spots around the world. It attracts lots of people from other countries to visit these people every year and the best thing regarding Thailand is, it’s fully surrounded by nature.  If anyone wants to spend more time with nature and peace you can choose Thailand, after visiting the tourist spot in Thailand you can feel that you have taken the correct decision. Thai people are independent, understanding, and fun-loving and they are very free to enjoy their life the reason towards this great attitude owing to the influence of Buddhism. In Thailand food is rich in taste, especially Thai cuisine and you can get many types of food and it will be spicy and sweet as well.

The tropical climate is one of the reasons for the increase in Tourists from around the world and the people who cannot tolerate the heat can come in the month of February and they can enjoy till the month of May or November. The culture of Thailand is highly influenced by the following countries, China and India. English is the common language in Thailand you won’t find any language problems here.  Bangkok is considered one of the most popular places and this state contains more beautiful spots.  The best time to visit Thailand country is the winter season, which comes between the months of November to March.

Thailand –  the ideal Luxury Holiday destination

A country which is rich in heritage, culture, history, and natural sites are the reasons that make Thailand one of Asia’s tourism gems.  There are lots of adventures and experience hidden at every stop and at every turn. If anyone talks about Thailand they would not forget to speak about Phuket, it is a beautiful coastal treasure and Thailand country has 3,200 Km of coastline. It has more beautiful and elegant beaches in Asia, which have been found in Thailand country. In this country, a Luxury holiday won’t provide complete satisfaction without spending your days in the sights of tropical paradise. Thailand is a collection of animated scenes which comprise active modern cities full of motorbike and tuk-tuks crowd.  Thailand has many tourist places to visit such as crystal blue beaches, great food, a thick jungle, a cheap beach and many best luxury hotels which are available with affordable budgets. Some of the tourist spots which are attracted by the Tourister can be explained below:

  1. Chiang Rai: It is located on the north side of Thailand and it serves as the important commercial hub of the Golden Triangle, which involve the borders of Thailand such as Laos and Myanmar. Chiang Rai town is very quiet in the daytime, but at night restaurants and souvenir stalls will start to do action.
  2. Pai: It is held in northern Thailand and this quiet village is part of  Mae Hong Son stretching between Mae Hong son and Chiang Mai. It’s one of the popular tourist spots, and Tourists wish to travel to this region. Pai is located among the mountain foothills and there may be lots of chances for visiting hill tribes and trek. Outside the city contains hot springs, elephant camps, and beautiful waterfalls. Additionally, the Pai river also attracts the Tourister more.
  3. Phanom Rung: Hindu shrine complex and it is located near the Nang Rong village. This temple sanctuary architecture was outstanding and it was built by the Khmer culture between the tenth and thirteenth centuries. The god present in this temple is Lord Shiva and this temple was made of laterite and sandstone. Phanom Rung was constructed to indicate Mount Kailash, the home of Shiva. This complex faces east and the sunshine will come through all fifteen sanctuary doorways four times a year. The Phanom Rung temple celebrates the festival during the month of April which involves Brahmin ceremonies and light shows.
  4. Railay: Railay is a small place in which anyone can go only by boat because of the high limestone cliffs and these cliffs attracted rock climbers from all people around the world. This area is also a popular place in Thailand, owing to its pretty beaches and relaxing atmosphere. It doesn’t have any high-rise buildings and many constructions are hidden among the trees.
  5. Khaosok National Park: It is one of Thailand’s beautiful wildlife reserves, which contains jungle forests, rivers and lakes and limestone karsts. This place serves as home to many wild creatures such as barking deer, Asian elephants, wild boar, Malayan tapirs, bears and different types of monkeys like langurs, pig-tailed macaques, and gibbons. There are lots of trails in the park through which visitors can enjoy the jungle forest by taking photos of beautiful waterfalls, swimming in pools and spotting wildlife.
  6. Ayuthaya: Ayutha city is placed in the River valley of Chao Phraya in Thailand. It was declared the most magnificent place on earth and it is an attractive site, with 3 palaces, more than four hundred temples and a populous reaching around 1,000,000. The destruction of Ayuthaya is considered a major attraction for the Tourister now and it can be easily reached the boat, bus, train or van.
  7. Kanchanaburi: It is located in the east of Thailand and it was admired due to the beautiful scenery, national parks, and waterfalls. Several museums and war will explain the city and this city includes national parks which provide extraordinary scenery, caves, and waterfalls.
  8. Bangkok: Bangkok is the capital of Thailand and it is considered the largest city it includes high-rise buildings, ancient temples, magnificent palaces, bustling markets, streets lined with tantalizing foods, and glittering nightclubs. The City is described as a concrete jungle jam due to its traffic and air pollution. The famous tourist spot, Khao San Road is a good place to start cheap shopping, and nightlife and also it has a popular temple named Wat Phra Kaew, which contains Emerald-made Buddha.
  9. Thailand Island: Thailand Island is famous because of its beautiful beaches, and others for its gorgeous scenery. Phuket is the largest and most developed island in Thailand, which is connected by two bridges. There are much more pleasant and beautiful islands to pick from as a Tourist.
  10. Thai-Burma Railway: The two-hour journey by train is needed to see the River Kwai to Nam Tok and it is the most scenic and popular train ride. Even though the views were elegant its history makes the ride more special. Asian labourers were horrified and attained a deadly race to finish this railroad. Presently, the portion of the original rail line is working.
  11. Northern hill tribes: Northern Thailand spot has several interesting places and ethnic minorities these are named hill tribes. Most of the tribes migrated to the region a hundred years from the Asian interior. There are lots of ways is possible to go trekking and to visit more numerous villages where the people are happy to see the arrival of tourists.
  12. Similan Islands: Similan Island is the most popular island in Thailand country, in which gives gorgeous look with coral reefs and rock formations with unique shapes. Experienced divers mainly enjoy hot spots like the Elephant Head Rock and East of Eden.

The main attraction of Thailand Country:

Thailand’s attraction is endlessly owing to the Buddhist monks, ancient monasteries, floating markets, colourful hill tribes, rave parties, exotic wildlife, dense rainforests, tropical Islands, pristine coral reefs and golden beaches. Then the most exuberant city, Bangkok, the capital of  Thailand in Southeast Asia, would show the clear structure of Thailand’s beauty.  Thai people are very kind and understanding to other people and the travel industry has been an attractive option for every person from every stratum of society – be it middle-income groups to billionaires. Tourists can find many levels of comfort that they need from middle hostels to five-star places. Every high hotel in Thailand contains an air conditioning facility and many hotels provide spa treatments and Thai massages. Thailand is indicated as a place of adventure and the Islands & beaches of Thailand’s south can make use of sports like scuba divers, water sports, and rock climbers which make them enthusiastic. In the north of Thailand, people can enjoy trekking, wildlife spotting, and a natural playground. Bathing under a chill waterfall will create wonderful and memorable things in every person’s life. When coming to the food the cuisine is one of the best food in Thai, which is spicy and delicious. From street calls, and night markets to fine restaurants, people contain forks in their hands.

How to travel to Thailand, the beautiful country:

  • Reach Thailand by Flight: To go to Thailand from other countries you can go by flight option if you are a foreigner, it has lots of flights are available national and international. The national airline flies from many international locations. Bangkok Airways also provide international flights to any destination within Asia, but there are  no flights directly available from the US. Flight amounts will get cheaper during April and June month and in the month of August to November costs will be more expensive. In the month of December to March, the price would be more expensive.
  • Travel by rail: The State Railway of Thailand provides train services between Butterworth, Malaysia, and Bangkok. Some express train operates directly between Singapore and Bangkok, but which is very expensive.
  • Driving to Thailand: Road passage is possible through Cambodia, Malaysia & Laos s but people can find coach operators at the bus station, but services by minivan will be faster.
  • Travel by Boat: You can travel to Thailand by boat too, and it has more international shipping companies & contain different cruise lines. Ships from Singapore, Hong Kong, Europe and Australia make regular stops in Laem Chabang and Phuket ports.

Thailand Tourism spot invites more Tourists to visit:

Thailand has a steady stream of visitors from around the world and Thai country is one of the most enjoyable countries. Tourist attractions will be found in other countries and it has lots of places to visit in the north and south. The Southern part of Thailand provides the visitors such as sandy beaches, natural scenes and nearly hundreds of islands. To the east, there are many archaeological sites and mysterious ruins, then the other historical sites provide an impression towards the Kingdom’s rich history. Thailand country is well known among other country people due to its warm hospitality and rich cultural heritage. It contains lots of colourful festivals like Thai New Year, Loy Kratong, the water festival, and the lights festival. Addition to Thailand country provides a great variety of crafts and arts which are made from local wooden handicrafts.

The hospitality industry including Travel and Tourism provides more jobs than the other sector, such as education, retail, automotive manufacturing and agricultural sectors.

  • Agriculture – forestry, agriculture, fishing
  • Mining – natural gas, extraction of oil, related services
  • Chemical manufacturing – drugs and medicine, plastics, paint, rubber, polishes, ink, cosmetics, perfumes, fertilizer, soap, cleaning materials, pesticides, pharmaceutical products
  • Automotive manufacturing – Motor vehicle and its accessories & parts
  • Retail – retail trade
  • Financial service – Financial & Insurance activities
  • Banking – All banking activities & related services
  • Education – All educational services

The reasons why people must visit Thailand at least once are:

  • Beaches: Thailand has beautiful beaches and one travelling to the beautiful country would be spoilt for choice if he is to pick from the numerous pretty beaches that adorn the country.
  • People: Thai people are friendly in nature and this country is often referred to as the “ Land of smiles”. Once you visit Thailand you surely will return after making a good number of friends.
  • Atmosphere: Thailand has a distinctive atmosphere and one can enjoy seeing the surrounding. The beauty of the country with its mesmerising atmosphere is one special thing exclusive to Thailand.
  • Food: Thai food is healthy and extremely delicious and one would rarely feel like cooking on his own as store-bought food is of quite an affordable price and tastes absolutely delectable. It contains a wide range of noodles, seafood & rice dishes and also you can eat at food stalls, local markets and restaurants.
  • Temples: Thailand has many magnificent temples which one can visit, especially in the city of Bangkok.
  • Nightlife: Thailand is a happening country with exciting nightlife. For persons interested in discotheques and parties, Thailand is the best place for them. In Bangkok city or islands, always some parties will be going on and thus a traveller would never get bored.
  • Adventure sports: With different beaches and islands, a traveller visiting Thailand can get entertainment, leisure, and recreation for your holiday. Days spent in Thailand would be a cherished experience of a lifetime. One can choose and enjoy different adventure sports available at a reasonable cost across different tourist destinations.

Importance of Travel and Tourism Industry in Thailand

Known for its beautiful beaches and nature, the hospitality of the people, and its rich historical sites, Thailand is one of the most popular tourist destinations in the world. Quite naturally, the tourism industry is a major contributor to the country’s economy.

What is the contribution of travel and tourism to GDP (% of GDP)?

The share of Travel and Tourism spending or employment in the equivalent economy-wide concept in the published national income accounts or labour market statistics. Visitor exports are compared with exports of all goods and services Domestic Travel and Tourism spending is compared with GDP Government individual Travel and Tourism spending is compared with total government spending Internal Travel and Tourism consumption is compared with total internal consumption (i.e. total domestic spending plus total export) Leisure Travel and Tourism contribution to GDP is compared with total GDP Business Travel and Tourism contribution to GDP is compared with total GDP Travel and Tourism capital investment spending is compared with all fixed investment spending

In 2019, the contribution of travel and tourism to the GDP of Thailand was 117.5 billion US dollars. Between 2000 and 2019, the contribution of travel and tourism to the GDP of Thailand grew substantially from 21.9 to 117.5 billion US dollars rising at an increasing annual rate that reached a maximum of 24.70% in 2007 and then decreased to 7.30% in 2019.

As of the first quarter of 2020, the tourism industry was estimated to directly contribute 5.65 per cent to the gross domestic product (GDP) in Thailand. Thailand’s world-famous tourism sector began emerging from its coronavirus dormancy after the government began reopening the country to fully vaccinated visitors. The tourism industry accounts for around 18% of the country’s GDP. In 2022, a reinvigorated tourism sector not only helped Thailand’s gross domestic product to a year-on-year 4.5% expansion for the third quarter but also gave a big boost to personal consumption, as per the National Economic and Social Development Council (NESDC). The economic lift came despite inflation taking a toll.

The last quarter’s growth rate of the year matched the 4.5% spurt forecast by a Reuters poll of economists. Thailand’s economy was expected to continue on a recovery track, having expanded 2.5% during the previous three months.

On a seasonally adjusted quarter-on-quarter basis, Thailand’s economy grew at an annualized 1.2% from the second quarter ended June.

The COVID-19 aftermath – Reimagining Tourism in Thailand After the Pandemic

International tourism is the key and chief contributor to the economy of Thailand. The Thai economy was hit hard by the pandemic—but it is finding ways to support its travel industry and prepare for international travel to arrive once there’s a further recovery.

Thailand’s economy is dependent on international tourism, once a thriving sector that has been impacted due to restrictions brought in by the pandemic. But there have been constant efforts by the Thai government to boost domestic travel, as well as measures for supporting the return of international demand after the country started to reopen its doors to vaccinated travelers from 63 nations last year.

The pre-pandemic levels of tourist arrivals and spending take a year or two, as per the Thai Hotels Association. It’s likely that in the near future, large groups of travelers would start heading to Thailand, provided the pandemic outbreaks remain checked and under control. There’s light at the end of the tunnel, but at the same time, it would be a gradual climb back to the pre-pandemic levels.

A Heavy Blow to the Thai Tourism Industry

In 2019, Thailand was in the eighth position globally in the number of international tourist arrivals, with China being the chief source. The country recorded 40 million tourists in 2019, with the top spending categories for inbound visitors being accommodation 28%, shopping at 24%, and food and beverages at 21%. Moreover, the tourism sector in Thailand created around 36 million jobs and several business opportunities in Thailand in the country between 2014 and 2019.

Unfortunately, the outbreak of the pandemic and subsequent restrictions has hard hit the Thai economy, particularly its tourism as international travel plunged in a matter of a year. Passengers on international flights to Thailand declined by 95% in September 2021, as compared to 2020 and much worse when compared with 2019.

This decline in the number of tourists had a huge impact on tourism spending, as international travellers spent significantly higher than their local counterparts. In 2019, international travellers made up 33% of overall travellers in Thailand and accounted for around 60% of all tourism spending. On average international tourists spent around $1,543 per traveller, compared to $152 by local travellers. This fall in expenditure undeniably created a ripple effect on the country’s food and beverage (F&B) retail industries, which include approx. 1.2 million small and medium-sized enterprises.

Recovery seems to be on the horizon for Thailand’s economy, particularly its tourism industry. The Thai economy started to rebound in the fourth quarter of 2021 and has been growing at an accelerating rate ever since as per Danucha Pichayanan, the NESDC’s secretary-general. The NESDC also forecast full-year growth to come in at 3.2%, up slightly from the 2.7% to 3.2% prediction announced in August. For 2023, 3% to 4% growth is now being forecast. They also expect the revival of a tourism industry that accounts for around 18% of the country’s GDP.

According to the Tourism Authority of Thailand, the country has welcomed 7.6 million foreign tourists by November 2022. That is well above the 427,000 who managed to sneak in the previous year, ie. 2021. The TAT expects up to 10 million foreign tourists in 2022 and 18 million next year. But these numbers turn pale in comparison to the 39 million international arrivals for 2019 before the pandemic hit globally.

As it did before the pandemic, the tourism sector in the third quarter of 2022 provided Thailand’s economy with a knock-on effect, giving a significant boost to private consumption. That metric expanded by 9% in the third quarter, up from 7.1% for the previous three months.

But inflation remains a hindrance. In 2022 headline inflation hit a 14-year-high of 7.86% in August, followed by 6.41% in September and 5.98% in October, well above the 2021 average of 1.23%, largely due to rampaging oil prices. NESDC has been keeping a close watch on inflation. It has forecast the 2022 headline inflation rate at 6.3% but expects it to be in the 2.5% to 3.5% range in 2023.

Boosted by a rebound in tourism and private consumption, Thailand’s economy grew at its fastest pace in more than a year last quarter, but the outlook was clouded by risks of a global economic slowdown, as predicted by a Reuters poll.

The recent recovery in tourism offered Thailand’s ailing economy a lifeline in the aftermath of the COVID-19 pandemic. As per reports, on a quarterly basis, gross domestic product (GDP) was forecast to have grown a seasonally-adjusted 0.9% from 0.7% in the preceding quarter, the median forecast from a smaller sample showed. Forecasts ranged from 0.2% to 1.2%, highlighting uncertainties surrounding the post-pandemic recovery. The data was made available in November end.

Economists commented that the strong recovery of tourism, as well as the pick-up of consumption likely led the charge in pushing GDP to grow in the third quarter, wherein the push from the former was likely stronger than the latter. As tourists return more and more by the month regardless of the global challenges ahead, it is expected that Thailand would likely pose another strong GDP print next quarter, and even for 2023.

Analysts in a separate Reuters poll expected GDP growth to average 3.3% in 2022, in line with the Bank of Thailand’s estimate, and then rise to 4.0% in 2023 when tourist arrivals are expected to gather pace. After some pandemic curbs were lifted late in 2021, the tourism-driven economy made a steady recovery and is expecting more than ten million tourist arrivals in 2022 and 21 million next year.

Long-term Optimism

Given that the GDP of Thailand depends significantly on the income from foreign tourists, the local tourism market alone won’t be sufficient to bring the country’s revenue from tourism back to pre-pandemic levels; the tourism sector’s recovery would rely on a resurgence in international travel. This recovery would likely reshape the world’s travel industry landscape and bring a strong imperative for the public as well as investment opportunities in Thailand in the private sector for ensuring the industry’s survival.

Over the longer term, the Thai government and the Thai market alike remain optimistic about international travel. Southeast Asia is among the fastest-growing markets in the world and home to a large middle class of around 300 million people with a strong interest in travelling and a thirst for international aspirations. The Thai tourism industry has requested the Thai government to be flexible with the entry restrictions for tourists both domestic and international. The government is also eagerly looking for foreign investment in Thailand to give a lift to its tourism sector.

Efforts to Stimulate Tourism

The Thai government has arranged several efforts to compensate for the loss of income due to the lack of international and domestic tourists. The Thai government’s effort to encourage domestic travel took the form of offering subsidies for flights and hotel stays for travellers. The Thai government also rolled out various measures for stimulating international travel to its beach destinations and attracting high-end tourists from international markets.

Thailand’s revenue from domestic travel reduced from $34.5 Bn to $15.4 Bn in 2020. An increase in local spending won’t alone compensate for the effect of the pandemic on its economy. Thailand has largely been reliant on the international markets, which represented around 60% of its total tourism spending in 2019.

In response, the country launched the “Phuket Sandbox” last year, an effort to draw demand from international tourists. The initiative allowed fully vaccinated tourists exemption from requirements of quarantine, provided they stayed in Phuket for not less than 14 days before travelling to different parts of the country. The model hopes to attract visitors from Asia, America and Europe—all key markets for Thailand. Various other reopening plans followed, such as “Andaman Sandbox” and “Samui Plus” plans. Together, the plans have created a network of reopened tourist spots, which hopes to position the country as an attractive destination for domestic as well as international travelers alike. Tourist Arrivals in from 91,255 in November 2021 to 230,497 in December 2021.

Contact Startup in Thailand for professional startup consulting if you are contemplating to set up a business in Thailand.

Let the Startup Specialists  handhold you for doing business in Thailand.

Interesting Reads : 

Take a FREE Online Consultation here or get essential tips by downloading this e-Book on how to Startup in Thailand.