Addressing LGBTQIA2S+ discrimination could open new business opportunities that increase GDP by up to 1.47%, worth US$7.6 billion, according to the Thailand PinkTech Ecosystem Report 2024.
LGBTQIA2S+ is an acronym for a group of sexual orientations and gender identities, including lesbian, gay, bisexual, transgender, questioning, intersex, asexual and two-spirit.
"It's time to recognise the immense value of diversity and create an inclusive environment where everyone can thrive," said Poomporn Thamsatitdej, director of the artificial intelligence centre at Thammasat University.
The pinktech ecosystem is more than just an emerging sector, it's a catalyst for economic and social change, he said.
The report was jointly conducted by the centre and Canvas Ventures International (CVI), identifying Bangkok, with its vibrant LGBTQIA2S+ community and supportive ecosystem, as having the potential to become the epicentre of pinktech innovation in Southeast Asia. The survey interviewed 105 respondents from May to October.
Thailand's progressive policies such as the marriage equality law and gender equality law lay a foundation for pinktech growth and offer an environment that fosters innovation and inclusion, according to the report.
Despite the significant potential of Thailand's pinktech economy, 88.9% of investors in the survey have yet to engage with the market based on a lack of understanding and collaborative opportunities.
Mr Poomporn said there are 78 active pinktech startups in the market, of which 65% are in the early stage or pre-seed, with many struggling to secure funding and scale their businesses. This underscores the urgent need for targeted support and resources.
He suggested healthcare and wellness businesses leverage Thailand's healthcare reputation to serve specific LGBTQIA2S+ needs, ranging from telemedicine to mental health.
The tourism and hospitality sectors can join with pinktech startups to create travel experiences for LGBTQIA2S+ people, while fintech, insurance and marriage equality fuels demand for tailored financial products for individuals and couples in this segment, said Mr Poomporn.
ECONOMIC IMPACT
He said one area where pinktech can create an economic impact is inclusive financial services. Some 89% of surveyed same-sex couples said they are interested in financial services, which can be leveraged to add $2 billion in value to the local financial market, said Mr Poomporn.
Roughly 78% of respondents said they are dissatisfied with current healthcare options, indicating demand for telemedicine services in the segment. The market size is projected to reach $500 million by 2025, he said.
Moreover, 72% of LGBTQIA2S+ professionals face career advancement barriers, underscoring the need for inclusive job platforms and mentorship apps. Addressing this obstacle could add $1.5 billion to GDP annually, noted the report.
As 65% of LGBTQIA2S+ youth feel socially unsafe, this drives demand for augmented and virtual reality social platforms and venue discovery apps. This market is expected to grow 300% over five years, according to the survey.
Tourism also shows strong potential thanks to the legalisation of same-sex marriages, with the sector projected to attract 4 million visitors annually and generate $2 billion.
Bangkok has all the ingredients to become a global pinktech hub, said Tanachai Kulsomboonsin, co-founder of CVI.
"By investing in pinktech, supporting entrepreneurs and fostering collaborations, we can unlock the full potential of this dynamic market," he said.
CVI plays a crucial role in fostering this growth through initiatives like the upcoming PinkTech and OrangeTech Accelerator Programme (PAINT), which provides entrepreneurs the resources and mentorship needed to ensure success.
PAINT is a key component of CVI Labs' venture-building platform dedicated to cultivating tech businesses with a focus on social impact.
Mr Tanachai said PAINT is not just an accelerator -- it's a movement open to entrepreneurs of all ages, genders and backgrounds.
Slated to start in February 2025, PAINT's intensive eight-week programme offers 50 participants the essential skills, mentorship and resources needed to develop and scale their businesses.
Bangkok should aim to solidify its position as a global pinktech hub, driving economic growth through inclusivity and creativity, he said.
PAINT set an ambitious goal to achieve half a billion baht in collective fundraising and 5 billion baht in business value within a few years.