Thailand targets ‘revenge spenders’ to fire up its tourism revival

The South-East Asian nation expects a 30% increase in average spending per trip next year, according to Yuthasak Supasorn, governor of the Tourism Authority of Thailand. - Bloomberg

BANGKOK, Oct 12 (Bloomberg): Thailand is betting on "revenge spending” by tourists and a rush of travelers from Europe and the US looking to trade harsh winter at home for tropical weather to accelerate a recovery in its tourism industry.

The South-East Asian nation expects a 30% increase in average spending per trip next year, according to Yuthasak Supasorn, governor of the Tourism Authority of Thailand. Tourists spent an average 55,000 baht ($1,443) per trip in the second quarter of this year, up 17% from 47,000 baht seen before the pandemic.

As tourist arrivals will only gradually return to pre-Covid levels, Thailand will focus on extracting more from each visitor, Yuthasak said, adding a slump in baht’s value against the dollar to a 16-year low will spur spending.

Thailand is offering longer stay for tourists from about 70 countries during the so-called high season until March after scrapping all Covid-related entry curbs to lure holidaymakers from destinations including long-haul European and North American markets.

High costs of gas and energy during the winter will incentivize westerners to escape the cold for Thailand, Yuthasak said, adding the longer tourists stay, the more they spend.

"Save your money, lock your home, and come to Thailand. Pay for a pool villa in Phuket instead of paying the energy bills,” Yuthasak said at a briefing. "We hope that with revenge traveling there will be a shift to revenge spending. They buy everything.”

Thailand welcomed almost 40 million foreign tourists in 2019, the year before the pandemic, who generated more than $62 billion in revenue, according to official data.

Tourist arrivals totaled 6.48 million this year through Oct. 9 and the number is likely to top 10 million for the full year, up from less than half a million in 2021, according to Yuthasak. The number may double to 20 million next year with tourism revenue seen at 2.49 trillion baht, or 80% of the pre-pandemic levels, he said.

The recovery may be faster, depending on how soon China will reopen borders that have been shut due to its strict Covid-Zero policy, Yuthasak said. China used to be the biggest source of tourists in Thailand, making up more than a quarter of international arrivals before the pandemic.

China may start opening up around the Lunar New Year period that starts in late January, Yuthasak said. - Bloomberg