Thailand’s strict curfew has now been lifted and this leaves an open door for the return of domestic tourism. This will allow Thailand’s tourism economy to have a higher chance of a quicker recovery due to domestic airlines being able to operate. Covid-19 has shown to have a colossal impact on tourist destinations like Thailand. The country felt the impact earlier than other destinations due to its reliance on Chinese tourism.
In 2019, Thailand saw 135 million domestic trips, this figure is forecast to reach 160 million by 2023, increasing at a CAGR of 4%. Although there may be a decrease in 2020 due to the pandemic, domestic tourism has the potential to rise once again through increased promotional activity, offering a possible economic boon in the process.
It is critical for destinations, in particular tourism-reliant destinations like Thailand, to create strategic actions to be able to recover from Covid-19. These strategic actions must be implemented now, otherwise, it will be too late.
As seen on GlobalData’s Global Ads Database, Thai tourism authorities and tourism-related companies have shown a heavy presence by creating promotional material during the pandemic. Thailand Tourism released an international video to show a sense of community and how the country has become one during these times. These promotions will be highly useful to initiate domestic tourism.
According to GlobalData’s Covid-19 Week 10 global consumer survey, respondents are showing a strong preference for local products and services. 76% of respondents said they find local products and services ‘completely’ and ‘somewhat trustworthy’. This highlights the potential for domestic tourism in Thailand, but also for other destinations across the world.
The easing of lockdown offers a huge opportunity for domestic tourism in Thailand, which is a larger market than international tourism for the nation. In 2019, the country saw 135 million domestic tourists compared to 40.8 million international ones, emphasising the size of the domestic market. Thailand also has no choice but to try and increase domestic demand. International tourism is not currently possible, and tourists now want to travel close to home due to the ‘fear factor’ created by Covid-19.
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By GlobalDataNo date has been set on the easing of restrictions on international arrivals, which are still banned until the end of June. As Chinese tourism is showing signs of recovery, Thai authorities should be looking to promote to this vital source market for when international travel restrictions are eased. According to the Tourism Council of Thailand, Chinese holidaymakers spent almost $18bn in Thailand last year, highlighting why it is crucial to revive Chinese demand as soon as possible.