Domestic tourism receipts set to fall short of B1tn target

Domestic tourism is on course to reach 200 million trips this year, but revenue is expected to reach just 965 billion, falling short of the target of 1 trillion baht, while the private sector has called for the promotion of second-tier cities in the form of a loyalty programme.

In the first seven months of this year, domestic receipts increased 12.4% to 581 billion baht, from 160 million domestic trips, which rose 8.8% year-on-year.

Somradee Chitchong, deputy governor for domestic marketing at the Tourism Authority of Thailand (TAT), said as the fourth quarter is typically the period that generates the highest revenue, accounting for 35% of annual revenue, the agency still hopes to boost local expenditure to inch closer to the original target of 1 trillion baht.

However, uncontrollable factors, such as flooding in many provinces during this period as well as caution among local travellers when it comes to spending could impact travel decisions as well as spending during their trips.

“We still hope to see a significant improvement in the high season during the final quarter, as this is the hopeful period for tourism. The weather is more favourable and mostly free from PM2.5 dust as in the first quarter, which is also high season,” said Ms Somradee.

According to the TAT, overall tourism revenue from both domestic and international markets between January and July tallied 1.4 trillion baht, while the average hotel occupancy rate nationwide stood at 73%, a slight increase of 4% year-on-year.

The Central region gained most travellers with 68.1 million trips, generating 295 billion baht, up 8.2% and 9.6%, respectively. This region had the Thai market as its main target, with Chon Buri gaining higher domestic revenue than Bangkok despite fewer trips.

However, the South earned the highest revenue of 566 billion baht from 33.1 million trips, thanks to international visitors, who flocked to the region’s leading seaside destinations such as Phuket, Phangnga and Krabi.

Meanwhile, the Federation of Thai Tourism Associations (Fetta) suggested related authorities periodically plan marketing campaigns, elevating some successful events to become regular events in order to let tourists plan their trips in advance.

Sisdivachr Cheewarattanaporn, president of the Association of Thai Travel Agents, which is a part of Fetta, said promoting second-tier cities could help generate income to more provinces and boost the number of trips.

He said Fetta has already proposed to the Tourism and Sports Minister that the ministry initiate a second-tier city airport loyalty programme, enabling tourists to earn points when travelling via provincial airports such as U-tapao in Chon Buri, along with Khon Kaen, Udon Thani, Chiang Rai, Krabi, Hat Yai and Surat Thani, and encouraging the private sector in each province to offer discounts for points redemption.

Mr Sisdivachr said the government should offer incentives to international carriers for flying directly to second-tier cities, along with facilitating convenient transfers between secondary cities and key cities.