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28 Dec 2016

Tourism

2017 New Year Holiday Tourism to Generate THB62.3 billion Revenues (Current Issue No. 2809)

 Businesses are depending on this New Year holiday to boost sales. Travel-related businesses are no exception, with everyone pitching in to create favorable climate for tourism by organizing activities and offering services that are compatible with Thailand's current situations. With an emphasis on Thai culture and the uniqueness in each community, it is believed the latest promotions will appeal to Thai and foreign tourists alike, helping generate additional holiday revenues for related businesses.

During this 2016 year-end holiday, a somewhat lackluster tourism market is predicted versus that of 2015, given that the number of Chinese travelers has been declining since ‘zero-dollar' tourism crackdowns were collaboratively carried out by Thai and Chinese authorities. Even so, this time of the year is typically the high season for long-haul vacationer arrivals from places like Europe and America who have made plans with family/friends well in advance. Also, short-haul tourists may help stimulate the market around the year-end, too.

Boosted not only by holidaymakers with plans to stay here beginning earlier this month, and perhaps lasting until after the New Year, tourism here will also be reinforced by short-haul travelers from Malaysia and Singapore, to name a few, who often visit Thailand during holidays or on weekends, and as such should add more momentum to the market. We thus forecast that international arrivals may increase 1.3 percent YoY, and receipts may reach THB38.3 billion, climbing 3.7 percent YoY.

KResearch views that some Thai travelers this season may choose to travel before or after the holiday to avoid traffic and crowds, although there are always some who go during the holiday. We predict that Thai holidaymakers this season should swell 8.6 percent in number over last year, generating income of around THB24 billion. That would be equivalent to 9.1 percent YoY growth.

Overall, we at KResearch also estimate that domestic and international travelers vacationing in Thailand December 29, 2016 to January 4, 2017, will climb 5.7 percent YoY. Total turnover is projected to reach THB62.3 billion.

Considering the above forecasts, there should be ample opportunities for tourism operators, e.g., hotels/other accommodation, restaurants, souvenir shops and other service providers such as package tour operators, massage parlors and spas, etc. Businesses should employ marketing approaches vis-à-vis the government's year-end stimuli to attract more targer customers. However, they should place equal importance on service quality, careful management and attentive staff, especially during the long holiday when they must accommodate more customers. Tourists' safety should also be one of their top concerns.

Tourism