The Tourism Authority of Thailand (TAT) forecasts domestic tourism to tally 3.14 million trips during the New Year holiday, generating 11.2 billion baht, with the northern region posting the highest occupancy rate at 78%.
The countdown celebrations in 12 provinces are poised to stimulate 4.21 billion baht for the local economy, said the agency.
Yuthasak Supasorn, the TAT governor, said the New Year holiday from Dec 31 to Jan 2 would see a surge of local tourists, with 560,380 trips projected for the northern provinces as travellers want to experience cold weather in mountainous destinations.
With the highest occupancy rate at 78%, the North would earn income of 2.05 billion baht, followed by the Northeast and the East with occupancy rates of 75% and 72%, earning 1.26 billion baht and 3.88 billion baht, respectively, said the TAT.
Cool weather in the North and Northeast is seen as the most favourable factor to attract families, groups of friends and couples, while the eastern provinces are packed with man-made attractions and various activities for tourists of every age, said the agency.
He said the eastern provinces also benefit from the short driving distance from Bangkok and lower expenditure compared with other regions, which require travel by air for convenience.
The southern region and the central region's occupancy rate stood at 70% and 68%, respectively.
Excluding Bangkok, the top five destinations for domestic tourists are Chon Buri, Nakhon Ratchasima, Kanchanaburi, Khon Kaen and Rayong.
Most Thais tend to choose these destinations as they can travel by car, which can save on costs and time, said the TAT.
Mr Yuthasak said Chon Buri is expected to gain the most travellers with 533,000 trips, securing an 85% occupancy rate thanks to several events, including a countdown concert in Pattaya featuring Thai K-pop singer "BamBam" Kunpimook Bhuwakul, which could draw more than 100,000 people to the event.
However, domestic tourism still faces challenges, with sluggish spending stemming from household debt, soaring goods and service prices, and volatile energy prices, he said.
Mr Yuthasak said domestic tourists would face a 10% increase in costs per day, while some travellers may opt for shorter routes and reduce their length of stay.
The TAT and business partners are set to hold Amazing Thailand Countdown 2023 events in 12 provinces.
Bangkok events are slated for Nakarapirom Park, Iconsiam, the Ratchaprasong shopping district and CentralWorld.
The TAT expects to have 899,000 visitors across all countdown venues, generating 4.21 billion baht, of which Bangkok will gain the highest income at 1.52 billion baht.