Tourism operators on the Eastern seaboard project a restrained year in terms of revenue as Chinese visitors trickle back as their economy struggles.
Domestic tourists represent another segment operators want to pump up as a partial recovery in the Thai economy and travel during the pandemic period have contributed to current hotel occupancy rates wavering around 50%. The operators propose more government stimulus measures to encourage local travel once a new administration is formed.
Pattaya tourism operators will likely face a tough year given the low occupancy rate among the Chinese market, which has yet to recover, while local budget travellers have also been slow to return.
Thanet Supornsahasrungsi, former president of the Chon Buri Tourism Council and group executive director of Sunshine Hotels and Resorts, said this year is still a recovery period for Pattaya tourism because of limited flight resumption across the Thai market.
Mr Thanet said he expects the occupancy rate to reach 40-50% during the low season in the third quarter, with about 70% of hotels back in operation.
The Chinese market, which was supposed to be the key market in the low season, totalled only 1.4 million arrivals in the first half this year.
He said China’s economy is weaker than expected, while Beijing is trying to encourage people to travel domestically to increase consumption.
Flight resumption this year between China and Thailand is estimated at 6 million seats, compared with 13 million in 2019, according to the Tourism Authority of Thailand (TAT).
Mr Thanet said the domestic market is also tepid this year.
High-spending Thais tend to travel abroad, while those with limited budgets who travelled some during the pandemic years have barely rebounded because of rising living costs and the sluggish economy, he said.
One of the biggest challenges for the TAT is to attract more domestic tourists during weekdays with policies and government stimulus measures, such as subsidising “workation” packages for companies or increasing annual leave for employees, which will encourage people to take short trips to Pattaya, said Mr Thanet.
He said he hopes the government will implement a new travel subsidy to generate income for small and medium-sized hotels that have yet to recover from the pandemic. Mr Thanet said the “We Travel Together” scheme mostly benefited luxury hotels, not small players.
Chairat Rattanopas, president of the Eastern Spa and Wellness Association, said climate change has shortened the cool season, which could affect the Russian market during the upcoming high season.
With a longer summer period, many would choose to travel to nearby destinations such as Turkey instead of Thailand, said Mr Chairat.
He said several tourism associations in Pattaya are discussing a plan to set up a tourism federation to drive its own regional tourism industry.
The associations are expected to discuss possible collaboration with the Federation of Thai Tourism Associations, said Mr Chairat.
