The Tourism Authority of Thailand (TAT) is adjusting its proposed stimulus budget of 3.5 billion baht, with plans to add subsidies for chartered flights from China and promotional campaigns for global online travel agents, in addition to the domestic co-payment scheme.
The agency hopes the revisions will help it meet this year’s tourism revenue target of 3 trillion baht.
The revised marketing plan aims to help Thailand reach the new downwardly revised target of 35.5 million foreign tourist arrivals, close to last year’s level, but with revenue from foreign tourists growing by 10% from 1.67 trillion baht last year.
The TAT previously targeted 39 million foreign arrivals this year, generating 2.23 trillion baht.
TAT governor Thapanee Kiatphaibool said the target for the domestic market remains unchanged at 1.17 trillion baht from 205 million trips, as the co-payment scheme for Thai tourists is expected to be launched in the second half.
The agency earlier expected to request the cabinet to allocate 3.5 billion baht for these promotions.
However, as increasingly sluggish foreign markets became a priority, the budget for the domestic programme will be reduced in order to enhance international stimulus plans.
International arrivals in the first four months of this year plunged 0.2% year-on-year, with several key short-haul markets plummeting. Arrivals from China plunged by 30%, while arrivals from Hong Kong dipped 19% and those from South Korea fell 14%.
“The target for arrivals is lower, but we have to maintain revenue growth of at least 10% by increasing the expenditure per person among the markets with impressive growth in the first four months, such as Europe, which gained 16%,” Ms Thapanee said.
Although sentiment towards Thailand among prospective Chinese travellers remains negative due to a series of incidents, such as call centre scams and the March 28 earthquake, the Thai tourism industry cannot afford to neglect the Chinese market, she said.
In the TAT’s worst-case scenario, the number of Chinese tourists will decline to 4 million this year, from 6.7 million in 2024 — and 11 million in pre-pandemic 2019 — if no measures are taken to restore tourist confidence.
The agency plans to host a grand forum on May 29 called “Sawasdee Nihao” for 300 tour agents from all of China’s 30 provinces. Prime Minister Paetongtarn Shinawatra is expected to attend, along with representatives of the security authorities, such as the chief of the Tourist Police, to emphasise the safety measures Thailand is taking.
Ms Thapanee said subsidising chartered flights is part of the plan to help restore seat capacity, following a drop in the Chinese market from 8.8 million seats in 2024 to 7.9 million this year.
To maintain the growth of long-haul markets and other emerging Asian markets, the TAT will allocate part of the proposed budget to promotional campaigns with online travel agents (OTAs), which have the ability to penetrate independent markets globally.
Regarding the domestic co-payment programme, Ms Thapanee said the number of privileges per tourist may be reduced from 10, as many had not fully used their allotted benefits in the previous phases, resulting in a significant unused budget.
When it comes to the revised target, the European market is expected to generate the most revenue at 660 billion baht, up 44%, followed by Southeast Asia, generating 407 billion baht, which is a 36% increase. The Chinese market should generate 313 billion baht, representing a decrease of 19%.
