The prolonged political situation in Thailand is expected to slash tourism revenue this year by 10 percent from the THB 2 trillion projected earlier, reports The Nation. However, it is difficult to accurately predict the fate of tourism, given the uncertainties surrounding the duration of the demonstrations, as well as the status of the caretaker government.
“Nobody can predict when the political movement would end; last Sunday’s election cannot save the country from the crisis,” said Pornthip Hirunkate, vice president for marketing of the Tourism Council of Thailand. “The longer the situation drags on, the more the tourism industry suffers. Foreigners are losing confidence in Thailand as a favoured destination.”
Hirunkate also expressed the views that the political scenario will likely drag on for a few more months. Also, “if we can maintain 2014 performance at the same level as last year, we will be very lucky,” she said.
Inbound arrivals from overseas, especially China, one of Thailand’s largest mass tourist markets, are dwindling due to fears of political violence. However, at the moment, visitors from the United States, Europe and South Africa are holding steady; there has been a slight drop in the number of Australian tourists.
Small and medium-sized enterprises (SMEs) in the industry are suffering the most from the decrease in visitors and service cancellations. An estimated 70 percent of hotels and 80 percent of travel agents in Thailand are considered SMEs.
