Arrivals are recovering but business is not

Behind the figures touted by the government are many short-term stays from neighbouring countries, with little economic impact. Despite the 17.5 million tourists registered in the first half of the year (mostly Chinese and Indian), Thailand has dropped to 40th place in terms of turnover. Russians in Phuket instead of Americans and Europeans.

Bangkok () – The Covid-19 emergency is now over, but Thai tourism is still not picking up. The authorities remain optimistic, but the difficulties of an industry that was expected to soften the impact of the crisis are becoming increasingly evident.

The fragility of the sector is intertwined with internal and external factors: the figures that are boasted about are highly influenced by the parameters used (such as the distinction between tourist arrivals, arrivals in general and the inclusion or not of transits) and contrast with the real economic impact, which this year has caused the country to fall to 40th place in the international ranking of the sector. All this creates a situation of uncertainty and highlights the lack of a structural plan to relaunch the economy in which tourism could play an important role.

On the other hand, the country’s image is not helped by political instability due to the constant tug-of-war between former enemies of yesterday and the military, who have joined forces only to keep reformist movements out of power. This is not an encouraging calling card for relations with North America and the European Union, from which, until a few years ago, Thailand was flooded with tourists.

In recent months, the authorities have announced new forms of visas, to allow long-term stays for different categories of visitors, including those for study or temporary work or long stays. In addition, just a few days ago, they extended visa-free entry to 60 days, now applying to 93 countries and territories, compared to the previous 57. But such measures have not so far contributed to increasing tourist flows, but have instead served to encourage special, sometimes even illegal, situations of foreign citizens, which are widely covered by the local media.

In the first six months of the year, official figures indicate 17.5 million tourist arrivals, 35% more than last year but still below pre-pandemic levels. The largest number of arrivals are Chinese and Indian nationals, with other nationalities making shorter stays and benefiting less from the local economy by using pre-paid packages at home, such as Malaysians spending holidays or weekends of leisure or shopping in resorts located immediately across the border between the two countries. The Russian diaspora – which is mainly based on the island of Phuket – has already surpassed that of any other European or Western country in estimated size, with 1.4 million arrivals in 2023. Business organisations point out that the lower spending capacity of these travellers also makes it difficult to make the investments needed to adapt facilities to a more differentiated and often more demanding tourist clientele than in the past.