Tourism Overview in Thailand PDF

Overview
2.1 Tourism Overview
Thailand is one of the major players in the tourism market, throughout Asia as well as
worldwide. In regards to its tourism economy, it is one of the most developed tourism
markets in Asia, with many flocking both domestically and worldwide to have a taste of
what Thailand has to offer. Thailand is regarded as having everything a traveller world want
on their trip, exceptional hospitality, pristine beaches, historical places and eco-attractions,
great food all while having great infrastructure and affordable accommodation, making it
accessible to a large proportion of travellers of different price ranges. According to Ho,
Bangkok, Thailand is the most popular destination in the South Asian region (2018). Thailand
offers unique activities that attract different people such cultural tourism which allows
travellers to experience the cultural heritage and natural beauty. Increasingly there have
been segmentation to what Thailand offers to people, with examples including medical
tourism, food tourism, as well as elephant tourism (Netherlands Embassy 2020).
2.2 Tourism contribution to GDP
Compared to other countries, tourism in Thailand plays a significant role in the Thai
economy. As each year goes by, the contribution to the economy and GDP that tourism has
increases. It has been reported that in 2016, Thailand had the 10th fastest growing tourism
industry after growing 11%, with the World Travel and Tourism Council (WTTC) stating that
over the next decade, the growth per annum in the tourism market would have an average
of 6.5% (The Nation 2020). This therefore shows in the GDP contribution, where in February
2019, the National Economic and Social Development Council (NESDC, recently renamed
NESDB) reporting that tourism alone accounted for 18.4% of GDP in Thailand, with GDP
contribution from tourism increasing from 14.2% in 2015. However, lagging growth in the
Thai economy in other sectors such as manufacturing and good exports mean that
authorities are more reliant on the tourism sector to do well to make up the difference. That
means that investment for infrastructure to support tourism needs to occur, with 7.1% of
GDP or 245.5 billion baht already invested into the tourism sector.

2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 80.00%
5.00%
10.00%
15.00%
20.00%
25.00%
18% 17% 16%
14%
15% 16%
18% 18%
20% 21% 21% 22%
Thailand's Contribution of travel and tourism to GDP (% of GDP)
Source: Knoema 2018
2.3 Domestic and International inbound tourism statistic
Per year, more and more people are visiting Thailand, with data showing that 35 million
people arrived into the country in 2017, increasing to 38 million in 2018 and increasing
further to 40 million in 2019. However, authorities reported that the increase of 4.24% the
last year was less than what authorities expected (ThaiWebsites 2020). Breaking down the
types of visitors, foreign tourists contribute 1.93 billion baht (Reuters 2020) or $59.98 billion
USD, whilst domestic tourists contribute to 950 billion baht to the economy (Bangkok Post
2017). Recent data shows that an increasing number of Chinese tourists are visiting Thailand
more than ever before, amounting to 27.5% of total tourists. These tourists spend nearly
544 billion baht alone in 2019. However, recent reports suggest that domestic tourists
outnumber foreign tourists, but domestic tourists spend less per day and their trips shorter.
Another point is the impact of COVID-19 on tourist numbers in Thailand; as the number of
travellers going overseas for recreational activities being non-existent. Thailand’s authorities
reported that they are bracing for a 40% reduction in visitors in March-April period, with a
minimum 50-60% afterwards in tourists’ numbers (Thepgumpant 2020).