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Bangkok Post
Bangkok Post
Business

Operators awaiting B1.03bn stimulus

The tourism industry is awaiting a marketing stimulus budget of around 1.03 billion baht to help generate 265 billion baht in tourism receipts as a booster for the local economy this year.

Tourism Authority of Thailand (TAT) governor Yuthasak Supasorn said the agency held a workshop with tourism operators last month and concluded with a stimulus plan for both the international and domestic market in 2022.

"We cannot wait for organic growth as there are too many setbacks in the second half, led by inflation and insufficient seat capacity. The additional plan under the budget of 1.03 billion baht will help strengthen the private sector, such as hotels, airlines, tour bus and tour operators, which is the essential part to bring back tourists and sustain the overall economy," he said.

As of June 30, Thailand welcomed 2.12 million tourists -- still a far cry from the updated target of 7-10 million this year.

Meanwhile, the domestic market is expected to record 78.3 million trips from January to September -- lagging behind the target of 160 million trips within this year.

He said if the Center for Economic Situation Administration approves this plan at its next meeting, the tourism industry will be able to secure at least 80 million additional domestic trips, generating 215 billion baht, as well as providing the international market with an additional 1 million tourists, contributing 50 billion baht.

The plan to strengthen the international market will be achieved via cooperation with airlines. The joint promotion with around 10-20% budget support from the TAT would be earmarked for carriers that have a commitment to increase seat capacity to Thailand.

He said this plan will help cushion the impact from soaring fuel costs and enable airlines to have more budget to increase services after most airlines were affected by the pandemic.

Mr Yuthasak said the agency reaffirms the visa proposal to help absorb travel expenditure for tourists within this year, including the fee waiver for all types of tourist visas and the extension of eligibility to stay to 45 days.

"Prior to the pandemic, we might have used the visa scheme to accelerate decision-making, however, our goal now is different. Those who are ready to travel during the pandemic mostly have a well-planned budget. If we can redirect the visa fee into their pockets for other types of expenditure, such as spending on local or agricultural products or food, there should be at least 5-7 billion baht circulating in the local economy," said Mr Yuthasak.

He said on July 18, the TAT will also hold discussions with Airports of Thailand and the Civil Aviation Authority of Thailand about air travel in the second half.

The meeting is aimed at minimising obstacles for airlines that have strong demand to Thailand but cannot expand their services.

As of June 27, the country recorded 17.3 million airline seats from 72,548 inbound flights. This year, TAT wants to retrieve 50% of 2019's level which closed at 56.2 million seats from 250,000 inbound flights.

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