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7 Nov 2016

Tourism

2016 Foreign Tourist Arrivals to Grow at Least 8.6% Despite 4Q16 Dip (Current Issue No. 2791 Full Ed.)

The fourth quarter is a high tourism season in Thailand where foreign holidaymakers typically visit various attractions nationwide. During 4Q16, it is expected that an important factor that will help support our inbound tourist market is the continuing growth in the number of European tourist arrivals since late 2015, particularly, those from Russia and Scandinavia who have largely revisited Thailand's southern destinations, e.g., Phuket, Krabit and Surat Thani (Samui).
Meanwhile, our tourism is still facing many challenges, including a crackdown on “zero-dollar” tours, which has dented the number of Chinese tourist arrivals via packaged tours somewhat, as have foreign government advisories towards travelling to Thailand for safety and security reasons, plus other specific issues here. Therefore, travel-related businesses here should adjust their marketing strategies to bolster receipts. They should also attach importance to marketing communications through offering useful travel advice to foreign visitors, e.g., guidelines to observe during the tourists' stay here via online media on their own websites and those of their business partners, plus online social networks, and a 24-hour information service.

In 2016, given that the number of international tourist arrivals to Thailand has increased steadily since the beginning of the year, we at KResearch expect that their numbers will reach perhaps 32.5 million, increasing 8.6 percent YoY. They will likely generate income to Thailand of some THB1.6 trillion, rising 10.3 percent YoY over the THB1.45 billion recorded in 2015, representing growth for a second consecutive year.

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