TAT targets higher tourist spending

TAT targets higher tourist spending

Packages could bundle locations

Mr Srettha gives a keynote speech on stimulating domestic tourism spending with an emphasis on secondary cities, at a briefing at Government House on Wednesday.
Mr Srettha gives a keynote speech on stimulating domestic tourism spending with an emphasis on secondary cities, at a briefing at Government House on Wednesday.

The Tourism Authority of Thailand (TAT) plans to overhaul its strategy to stimulate spending per person, which significantly dropped following the pandemic, with foreign expenditure falling from an average of 50,000 baht to 42,000 baht.

Prime Minister Srettha Thavisin on Wednesday encouraged TAT executives and domestic offices to stimulate tourism spending by promoting second-tier cities, spurring expenditure during periods other than high season, creating products that meet tourism demand, and easing connectivity between destinations.

Tourism and Sports Minister Sudawan Wangsuphakijkosol said the ministry will discuss a plan with TAT to increase the length of stay for both Thai and international tourists by offering combined tourism products for more than one destination.

She said TAT must encourage cross-border tourists to stay overnight in Thailand, instead of taking one-day trips.

This strategy should also be applied to domestic travellers across all provinces, as local visitors are driving tourism expenditure in second-tier cities, said Ms Sudawan.

In 2019, foreign tourists spent around 5,100 baht per day, or around 50,000 baht per trip.

Prior to the pandemic, the average growth of spending per person was 2.5-5% per year.

Average spending shrank this year as the country recorded more short-haul tourists from Southeast Asia who typically stayed fewer days than other markets, while the Chinese market remained weaker than expected.

However, she said not every province can accommodate overnight visitors as some may lack adequate hotels or infrastructure.

The TAT has to rethink its strategy by grouping them as a tourism cluster instead of promoting each province separately, said Ms Sudawan.

She said the proposal to increase the proportion of domestic tourism revenue to 40% of the total from 30% would be a challenge and might not be accomplished by next year.

Thapanee Kiatphaibool, the TAT governor, said increasing spending via longer stays was the most feasible option.

The agency is preparing to approach tour agents from markets that usually offer chartered flights to Thailand to select two destinations in the country, combining lesser-known provinces with main destinations, she said.

Potential targets include countries granted stays of more than 30 days, such as Russia, which the government recently extended to 90 days, as well as tourists with long-stay visas, said Ms Thapanee.

As many people are unaware of second-tier provinces, the TAT might need to budget additional spending to offer joint promotions with airlines or tour agents to fly directly to or from these provinces, in addition to their preferred destination, she said.

For example, the agency might discuss with Russian tour agents the possibility of flying to Udon Thani before travelling to beach destinations in the South, or encourage them to choose other beach provinces that have fewer foreign tourists, such as Krabi, instead of flocking to Phuket.

Do you like the content of this article?
COMMENT (42)