Thailand Tourism: What to expect after lockdown?

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Thailand is one of the countries you’ll often find on travel bucket lists. But, like so many others, has been off limits since closing its borders to foreign tourists in March. The country was fast in its response to contain the coronavirus. Now, it is easing back into what is widely being called a ‘new normal’. With it, comes hopes of restarting a tourism sector in dire need of reawakening.

Amid this ‘new normal’, however, is it realistic to expect that we’ll recognise the tourism sector as we once knew it? Different countries are at different stages of tackling the pandemic. And it means there’s no guarantee that Thai authorities will throw open the borders to foreign tourists just yet. It could still be late September before international flights can return to the country.



The effect of Covid-19 on the industry

The ban on international flights is not a minor issue. For Thailand, the tourism industry is huge business. Foreign visitor numbers hit a record level in 2019 – with 1.93 trillion baht (US$59.98 billion) of spending added to the Thai economy in 2019. That accounts for 11%!o(MISSING)f the country’s total GDP. It is a hole in the economy that Thailand can scarcely afford.

Thai authorities came into 2020 hoping to recapture some of the lost European visitor numbers that were pinned on a strong baht. But its value started to fade as Chinese guests were banned from travelling as the pandemic started to take effect in early 2020. It’s ironic that a factor that was seen as a potential problem for the sector then lessened by a lack of demand in the sector.



A new focus on the domestic market

In the short-term, a lack of international tourists will present a significant challenge to Thailand and its ability to bounce back from the lockdown. Such a sizeable contribution to GDP is always going to be hard to cover. To try and mitigate this, the Tourism Authority of Thailand (TAT) has set its sights on the 12 million Thai people who are expected to holiday abroad this year.

TAT is working with the sector to create promotions that will help achieve this. One example is now running on Ko Samui, with discounts of up to 70%!a(MISSING)vailable. TAT governor Yuthasak Supasorn said: “If 6 million of the outbound market is converted to domestic travellers, the number of domestic trips should be doubled because they might travel more than one time”.



From mass tourism to high-end travel

The restart of international flights later this summer doesn’t automatically mean going back to the tourism sector of old, either. Moving away from backpackers, the country is contemplating a shift towards high-end travel. The government is considering targeting specific demographic groups when relaunching its inbound market – including former visitors to luxury resorts.

It isn’t a policy that has been universally welcomed, however. There are worries that courting higher-end travellers at the expense of mass tourism could harm smaller businesses the most. Others say the two markets can work hand-in-hand, provided it is done right. Either way, Thai tourism is looking as if there will be some form of reset – the extent of which we’re still to see.

Notes: now that the lockdown is slowly being lifted in Thailand and foreigners are being allowed to visit the country again, what can we expect financially for the country? How is the Baht doing compare to other South Asian currencies? Will the country go back to its mass tourism? According to the minister of natural resources and environment in Thailand, the lockdown has resulted in gradual ecological recovery, there are also talks of turning away from mass tourism to high-end tourism

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