With the long New Year weekend upon us, Thais will likely travel either to their hometowns or other domestic venues, helping generate additional income for related travel businesses. We at KResearch are of the view that domestic travel will be as busy as last year, given that public agencies in Bangkok and other provinces, as well as the private sector, are staging tourism campaigns to attract more tourists.
In addition, government economic stimuli, i.e., tax deduction on domestic travel expenses of up to THB15,000, effective until December 31, 2015, and on purchases of goods or services, plus travel-related services during December 25-31, 2015, at up to THB15,000, will also likely bolster domestic travel spending during the New Year holiday.
Meanwhile, the government's policy of promoting the private sector to develop new tourism venues has resulted in more choices for tourists, helping redistribute income to secondary attractions, thus easing traffic at established tourist destinations.
Because many have begun leisure trips before the official New Year holiday to avoid traffic jams, KResearch expects that the number of Thais who will be taking domestic excursions during the 7-day period (December 28, 2015 - January 3, 2016) will increase 11.3 percent YoY, generating THB22 billion, up 12.4 percent YoY, in revenues across the country. Of that estimated spending, the highest at THB5.2 billion would no doubt go to accommodation. Next would likely be THB4.6 billion for F&B, then THB4.3 billion for goods and souvenirs, THB2.8 billion for entertainment (adventure activities, water and amusement parks), THB1.9 billion for sightseeing or diving, THB1.8 billion for vehicle or boat rentals and THB1.4 billion for travel-related services.
Inevitably, increased spending over the long New Year holiday will be a blessing for the domestic economy as cash spent at various attractions will increase, thus offering an opportunity for businesses to earn more. Therefore, travel-related businesses are advised to ensure that they have high-quality service and sufficient personnel to cope with patrons during the holiday. Currently, competition in the Thai tourism industry is intense among travel businesses and tourist attractions. It is expected that many tourists will explore the new attractions now in place in many provinces