High oil prices, increased traveling expenses and fear of political instability forced the TAT to reduce its 2009 projection for tourist arrivals and tourism revenue sharply.
The Tourism Authority of Thailand (TAT) has significantly reduced its forecast for 2009 on international tourist arrivals and tourism revenue, as reported by nationmultimedia.
According to TAT, only 3.3% rise is expected in the international tourist arrivals, a sharp decline from earlier forecast of 10% growth. Just 16 Million tourists are expected to visit Thailand in 2009, while nearly 15 Million tourists are projected for 2008. TAT also reduced its tourism revenue growth forecast to nearly 5% for 2009, while the revenue is expected to reach nearly $17.9 Billion in 2008. Per trip per head spending is likely to reach around $1,175 in 2009 over $1,159 in 2008.
According to a Research Analyst at RNCOS, “Unfavorable economic conditions across the globe are discouraging people from visiting Thailand, thus reducing the number of tourist arrivals in the country.”
The other reason for the sharp decline in the forecast is soaring fuel prices. Rising fuel prices are also pushing the travel cost up, thereby discouraging people from travelling. Also, high oil prices are forcing airlines to reduce their flights, resulting in the slowdown of tourist arrival.
Another important factor for decline in the number of tourist arrivals is political uncertainty in Thailand. The fear of political instability is rising in Thailand as the government is facing with several court cases and had to counter seven weeks of street protests. With this, the slowdown in global economy is also leading to a downfall in the number of tourists visiting the country.
However, as per RNCOS analyst, various marketing schemes by the government are likely to boost tourist arrivals. For instance, about 14 road shows are planned by the TAT in 2009 to promote tourism sector in the country. It is also planning to distribute nearly 100,000 tourism value-cards to foreign tourists with Amazing Thailand theme that gives discounts on shopping in the country. This scheme is going to target mainly three markets - Singapore, Stockholm and London. These schemes will attract many tourists to Thailand as they will promote the country as a tourist destination on the world map.
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