Tourism set to capitalise on man-made destinations
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Tourism set to capitalise on man-made destinations

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Hanging laterns prepared for the Yi Peng lantern hanging festival in Nonthaburi's Mueang district. (Photo: Pattarapong Chatpattarasil)
Hanging laterns prepared for the Yi Peng lantern hanging festival in Nonthaburi's Mueang district. (Photo: Pattarapong Chatpattarasil)

Man-made tourist destinations could be a key factor in driving up income for Thailand's tourism sector and supporting the country's economy in the long term, according to Krungthai Compass, a research centre under Krungthai Bank (KTB).

Krungthai Compass anticipates that the global growth rate of man-made tourist destinations will range between 8.2% and 16.4% annually over the next five years, depending on the type of destination or event. The sports and tourism events segment is also expected to experience positive growth during this period.

Tourism income from man-made destinations and event segments in Thailand is projected to reach about US$5.3 billion in 2025, representing a 33% year-on-year increase and contributing 0.9% to the country's GDP. Furthermore, international travellers in this segment are expected to total 3.1 million in 2025.

The average income per trip for tourists in this segment is projected to reach 58,300 baht this year, 19% higher than that of foreign tourists in general, according to Krungthai Compass.

Patcharaphot Nuntramas, Krungthai Compass's chief economist, said Thailand's tourism industry has been recovering continuously from the pandemic over the past few years, but foreign tourist arrivals and tourism income have not yet returned to pre-pandemic levels.

As a result, all related parties in both the government and private sectors should develop a new tourism roadmap to prepare new growth areas over the next five years.

"Man-made destinations are a key solution for boosting tourism income and sustaining Thailand's long-term potential as a global tourism leader, which is vital for the country's economy," said Mr Patcharaphot.

According to Mr Patcharaphot, Thailand has significant growth potential in the sports and events sectors, but these currently play a limited role in both the domestic and regional tourism landscapes, and they are poised for long-term growth in line with global trends.

Post-pandemic, the Middle East has demonstrated remarkable growth in the tourism segment. For the first seven months of 2024, the region recorded a 126% increase in cross-border travellers, with tourism income rising by 145% compared to 2019.

Krungthai Compass forecasts foreign tourist arrivals to Thailand at 39 million in 2025, slightly below the 39.9 million recorded in 2019. This steady recovery is partly attributed to the slower return of Chinese tourists. If Chinese visitor numbers normalise, total international arrivals could exceed 40 million.

The research centre also noted that man-made tourist destinations could bolster long-term investment growth in Thailand. These investments could range from small to large-scale projects, particularly those targeting family tourism, which would positively impact tourism income.

Additionally, Mr Patcharaphot highlighted the government's entertainment complex project, which involves casinos, as a significant driver of investment, economic expansion and job creation in Thailand.

"With large-scale investments, this project could contribute more significantly to GDP, surpassing the 0.9-percentage-point contribution estimated for man-made destinations. However, the exact impact on GDP will depend on the scale of the investment budget," he added.

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