With India overtaking China as the most populous country, tourism operators see an opportunity for Thailand, especially among the young generation and the Mice (meetings, incentives, conferences and exhibitions) segment.
In 2022, India surpassed China as Asia's largest tourism source market, with more than 70% of visitors travelling to Asia, according to tourism consultant IPK International and ITB Berlin.
Rajesh Nair, chief executive of Enchantive Asia, an inbound tour company focusing on the Indian subcontinent, said Thailand's opportunity lies with the increasing working age population.
In addition to robust demand following the pandemic, this segment also has more spending power than other groups, he said.
Mr Nair said Thailand is known for its beaches and cities among both leisure and business groups, particularly Mice and wedding travel groups, thanks to quality facilities and affordable costs.
The UN previously predicted India to overtake China as the world's most populous country by this month, fuelled by the expansion of the young population.
He said Thailand remains the No.3 destination for Indian tourists in the first quarter, following only Dubai and the US.
However, Mr Nair said the Mice segment in the second quarter may recover to only 50% of the 2019 level because of the abrupt change in travel policy, with India requiring arrivals from Thailand to show a negative PCR test from Jan 1, 2023 before lifting the mandatory test on Feb 13.
Many groups cancelled their plans at that time, with limited flight capacity and high airfares also hindering Mice groups from visiting Thailand.
He wants the government to consider reducing visa fees for Indian tourists, with the Thailand Convention and Exhibition Bureau possibly subsidising foreign Mice groups to boost the market and help offset high airfares.
Tanes Petsuwan, deputy governor for Asia and the South Pacific at the Tourism Authority of Thailand (TAT), said reports on the Indian population prompted the TAT to expand marketing promotions to secondary cities to tap the growing customer base.
The TAT aims to draw 2 million Indian tourists to Thailand this year, nearing the tally in 2019.
Most of them have high spending power and are interested in luxury tourism products such as wedding groups, families, the young generation and digital nomads, he said.
Mr Tanes said flight frequency between Thailand and India has recovered to 65% of the level in 2019.
Thailand has recorded more than 400,000 Indian arrivals this year, which is among the top five markets.
