BANGKOK: The Thai travel and tourism sector has posted the expected tourism revenue round about (US$22 Billion) by 2019. Tourism flows to key beach destinations suffered only temporary downturns, according to Travel & Tourism IC’s report ‘Travel & Tourism in Thailand to 2019’.
Key Findings
– Thailand recorded significant growth in the number of tourist arrivals from emerging countries, such as India, China, and Russia at respective historic period CAGRs of 5.0%, 38.44%, and 28.31%. The increase can be attributed to a rise in income levels in these countries, the abundance of low-cost flying options, and the Tourism Authority of Thailand’s (TAT) promotional efforts
– Political protests in Bangkok, the country’s hub of tourism activity, which lasted for seven months starting from October 2013 and ending in May 2014, have had a negative impact on the country’s tourism sector. A quick solution to the crisis is not expected and military intervention is a possibility. While the country’s beach destinations typically recover from negative international media coverage, prolonged unrest has damaged Thailand’s image as a safe tourist destination
– The TAT set a domestic tourism volume goal of 136.8 million trips in 2014, and expected the revenue generated from these tourists to reach THB700 billion (US$22 billion). Domestic tourism is also encouraged by Thai government offices and large companies offering domestic trips as part of their incentive programs, and holding business meetings and training sessions within the country itself. A number of annual travel trade shows are organized in the country, providing small- and medium-sized enterprises (SMEs) with opportunities to expand.
– The aviation market in Thailand performed well during the historic period, primarily driven by the growth of LCCs. Total revenue registered a double-digit historic period CAGR of 10.67%, supported by an increase in the number of Chinese and Indian tourists, who have a preference for low-budget flying options. Robust growth was recorded in all categories, with low-cost carriers (LCCs) posting the highest CAGR of 23.27% during the historic period, followed by charter airlines with 9.98%, and full service airlines with 9.37%
– The car rental market value increased at a robust CAGR of 10.33% during the historic period, rising from THB18.1billion (US$570million) in 2010 to THB26.8billion (US$848 million) in 2014. Most car rentals in the country are made at non-airport locations, with sales from these accounting for 67.6% of the total car rental market value in 2014.Thailand’s travel intermediaries’ industry value increased at a CAGR of 8.10%, from THB340.6 billion (US$10.7 billion) in 2010 to THB464.9billion (US$14.7 billion) in 2014. This growth has been driven by increases in leisure and business travel, and a rise in online bookings.
