Chiang Mai tourism operators hope the new government will work to urgently solve the haze problem to lure back long-stay senior tourists, which represent a major loss for the province.
Move Forward Party leader Pita Limjaroenrat visited the province last week to discuss environmental and tourism policies with representatives from the tourism sector.
Tanit Choomsang, vice-president of the Tourism Council of Chiang Mai and president of the Chiang Mai Restaurant and Bistro Association, said the heavy PM2.5 smog in the early part of the year hammered tourism sentiment until the Songkran festival in April, making people hesitant to book in advance.
"Instead of staying for a whole year, a number of senior tourists returned to their home country to escape the smog season in Chiang Mai," said Mr Tanit.
"Thailand has lost opportunities because of this ongoing problem."
He said operators reported some Scandinavian long-stay retirees vowed not to visit Chiang Mai anymore, meaning much of the remaining market is just short-stay tour groups.
However, most Japanese retirees chose to stay during the smog season and adapted their lifestyles, said Mr Tanit.
He said market supply has grown steadily over the past few years as the number of elderly care and wellness centres increased, which indicates demand remains strong.
With more Chinese people migrating to Chiang Mai, parents are sending their children to international schools in the province, said Mr Tanit.
"Chiang Mai has potential as the country's wellness hub, but the seasonal air pollution paints the province in an unflattering light," he said.
If the air pollution issue is solved, the province's economy and tourism sector would improve, said Mr Tanit.
Representatives from the Tourism Council of Chiang Mai submitted a proposal for tourism development to Mr Pita last week.
Mr Tanit agreed with Mr Pita's plans for solving PM2.5, which included increasing the budget for each community, making Chiang Mai an Asean hub for fighting haze, and enacting a Clean Air Act.
The council also wants the government to develop new landmarks in addition to existing sites around Chiang Mai old town.
Data indicated last year Chiang Mai received only 4.2 billion baht in tourism revenue in the first 10 months of 2022, despite being a gateway city in the North. Phuket tallied more than 127 billion baht during that period.
Mr Tanit said this figure suggested the province still had work to do to increase tourism value, which could be achieved by bringing international events to the province, such as the International Horticulture Exposition that was held almost 20 years ago, yet still delivers a positive impact to this day.
He said the move to support indigenous communities is another good idea to generate wealth for local tourism.