Despite reports of reduced foot traffic in the Banthat Thong area, attributed to high prices, the Thai Restaurant Association remains optimistic about the area's growth potential as it is a popular destination.
Chanon Koetcharoen, president of the association, said Banthat Thong benefits from the charm of an old community, which appeals to foreign tourists looking to walk and experience local culture.
Students from the nearby Chulalongkorn University also contribute to the area's foot traffic.
He said Banthat Thong has become increasingly well-known due to the influence of social media.
As a result, there was an influx of tourists and visitors, encouraging many restaurant entrepreneurs to open their doors to cater to the rising demand.
When restaurants notice a surge in customers, they may raise prices, but the stagnant economy is affecting consumer purchasing power, said Mr Chanon.
Moreover, the area has felt the impact of the decline in tourist numbers.
From Jan 1 to June 1, Thailand welcomed 14.5 million foreign visitors, a 2.77% year-on-year decline, according to the Economics Tourism and Sports Division of the Tourism and Sports Ministry.
The source markets were led by the Chinese with 1.96 million, followed by Malaysia (1.92 million), India (985,000), Russia (964,000) and South Korea (677,000).
Panthip Deecharoen, owner of Everyday Thai Tea, which has a shop in Banthat Thong, said she observed a decline in both Thai and foreign diners.
She said the dip could be attributed to negative news about the area as well as the low season for Thai tourism.
Fewer Chinese tourists are expected to visit Thailand during the upcoming high season at yearend, unnerving some operators of eateries, said Ms Panthip.
However, she said she believes Banthat Thong is not in decline, but rather adjusting to a more balanced market.
"It has returned to a more sustainable level and will continue to be a key destination for food lovers," said Mr Chanon.
He said while people still enjoy dining out, they may choose to travel less or be more selective about where they dine, leading the market to find equilibrium.
For restaurants in the area to thrive, Mr Chanon suggested three tactics: offering excellent and distinctive food, providing good value in terms of food and service, and adapting to economic challenges and evolving consumer behaviour.
