Slower growth of Thai tourism receipts in 2023 compared with Asian peers is attributed to the sluggish Chinese market, which flocked to other countries, as well as Thai hotels' inability to adjust their prices.
Tourism revenue from foreign markets tallied 1.2 trillion baht, recovering to only 60% of the 1.9 trillion baht posted in 2019.
The rate is also below the Tourism Authority of Thailand's goal of 1.6 trillion baht, while foreign arrivals totalled 28 million, or 70% of the 2019 level.
Japan, which reopened its borders months later than Thailand, recorded a new high in tourism revenue of US$35.8 billion, exceeding the pre-Covid level.
Sisdivachr Cheewarattanaporn, president of the Association of Thai Travel Agents, said Japan's record revenue mainly derived from the weak yen, enticing foreign tourists to visit and spend on their products and services.
Mr Sisdivachr said expenditure in Japan was also driven by higher living costs, such as transport and accommodation.
Given its reputation for safety, unique culture and a service-minded attitude, Japan was able to lure an influx of tourists, he said.
Meanwhile, visitors to Thailand were mostly short-haul travellers, such as the Malaysian market, who were frequent visitors and unlikely to spend as much as long-haul tourists, said Mr Sisdivachr.
In addition, there were fewer Chinese visitors last year as Thai tourism was portrayed as unsafe on Chinese social media, he said.
Another roadblock for tourism is inefficient connectivity between large and second-tier tourism areas in Thailand, unlike in Japan or China where the mass transport network covers all regions, said Mr Sisdivachr.
"If Thailand wants to accommodate 70-80 million foreign tourists in the future, it's essential to distribute them to second-tier provinces," he said.
"The government must outline a plan, selecting new potential destinations to welcome tourists and build up necessary facilities to accommodate them, such as sufficient hotel rooms, attractions and connectivity."
Marisa Sukosol Nunbhakdi, president of the Thai Hotels Association, said the revenue figures could be the result of an uneven recovery among hotels.
She said while many five-star hotels could raise their room rates above the 2019 level, the majority of hotels, mostly rated four stars and lower, were unable to charge a similar rate as prior to the pandemic.
Thailand has a glut of hotels, forcing many operators to reduce their prices, while Japan does not have this problem, said Mrs Marisa.
Tourism revenue can be maximised by increasing spending per trip and extending the length of stay, she said.
The government should entice niche markets that tend to stay longer in Thailand, such as the Mice (meetings, incentives, conventions and exhibitions) segment, digital nomads and medical and wellness tourists, said Mrs Marisa.
Promoting soft power, such as film locations and large festivals across all regions, will enable foreigners to travel year-round, she said. Mrs Marisa said Thailand's arts and craft products are also popular with foreign tourists.
She said the special visa for foreign Muay Thai students is a good move, although it will have a minor impact because of its specific target.