The Krabi Restaurant Association projects a 10-15% year-on-year sales increase for the Lunar New Year festival.
However, this figure still lags pre-pandemic levels, primarily attributed to the sluggish economy.
Supphachai Rodthong, president of the association, said tourist arrivals increased, particularly foreigners, coinciding with Krabi's peak tourism season.
The uptick in tourist numbers is expected to help the province's restaurant industry, he said.
"The Chinese New Year festival is another positive factor during peak season," said Mr Supphachai.
However, he said restaurant spending this year may not reach the level from 2019, when sales during the festival rose by 30%.
Mr Supphachai anticipates celebrations this year will drive up sales by 10-15%.
However, he said restaurants in Krabi are grappling with escalating raw material costs.
Many operators are hesitant about raising menu prices for fear of losing customers, leading to thin profit margins, said Mr Supphachai.
He said he anticipates a 15-20% uptick in restaurant sales during the first half of this year, which could have been higher given the growing number of tourist arrivals, but global and domestic economic challenges influence consumer spending, particularly travel-related expenses.
As travel demand surges during the high season, which runs from the fourth quarter to the first quarter, airfare increases have been significant, said Mr Supphachai.
While foreigners can typically absorb these higher costs, he warned that sustained high airfares through March might deter Thai travellers during this period.
"If airfares stay elevated in March, Thai tourists might find them too expensive and choose alternative destinations," said Mr Supphachai.
He urged the government to implement tourism stimulus initiatives during the low season to foster domestic travel.
Mr Supphachai suggested subsidising travel-related expenses and launching campaigns that encourage Thais to explore domestic destinations.
He also commented on the "Rao Tiew Duay Kan" (We Travel Together) scheme introduced during the Prayut Chan-o-cha administration.
While the programme offered substantial discounts on accommodation, airfares, and dining in an effort to spur domestic tourism during the pandemic, Mr Supphachai said he doubts it would be as relevant now given the return of international travel options.
Throughout the pandemic, many Thais confined their travel to domestic trips.
However, with pandemic-era health restrictions lifted worldwide, Thais can travel abroad freely, he said.
