Thailand Eyes $11 Billion From Tourist Rush in Second Half

Anuchit Nguyen
·2 min read

(Bloomberg) -- Thailand expects to net about 400 billion baht ($11 billion) from a surge in foreign tourist arrivals in the second half as leisure travelers return to the Southeast Asian country following the easing of most Covid curbs.

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About 7.5 million international travelers are expected to travel to tourist hotspots such as Bangkok, Phuket and Koh Samui between July and December, a 1,840% jump from a year earlier, according to Rachada Dhnadirek, a deputy government spokeswoman. That will propel the full-year arrivals to 10 million, she said.

Thailand, like most tourism-reliant countries, is benefiting from a rebound in global travel demand with authorities scrapping all pandemic-era restrictions that kept visitors out for almost two years. The better-than-expected recovery in tourism has prompted the central bank and other government agencies to raise estimates on arrivals, helping cushion the blow to Southeast Asia’s second-biggest economy from multiyear high inflation and slowing exports.

“Government incentives and measures will further accelerate the recovery in the country’s tourism industry,” Rachada said in a statement Tuesday. Still, a persisting Covid outbreak, Ukraine-Russia tension and inflation are seen as key obstacles for Thailand’s tourism recovery, she said.

Thailand’s benchmark stock index climbed as much as 0.7% as Bangkok Dusit Medical Service Pcl and Bumrungrad Hospital Pcl, the nation’s two largest private hospitals with large international patients, advanced more than 2%. While Minor International Pcl, the country’s largest resort operator, rose as much as 2.3%, Airports of Thailand gained 1.1%.

READ: Top Thai Hospital Bets on Tourists as Covid Revenue Slides

The return of holidaymakers has also fueled registration of new tourism-related businesses. Almost 550 new businesses sought permission in the first seven months, up 169% from a year earlier, Rachada said, citing the commerce ministry’s data.

Thailand will permit tourists from more than 50 countries to extend their stay in the country up to 45 days between October and March to lure more visitors and support the economic recovery, the government said earlier this month.

Before the pandemic, the tourism industry contributed about 12% to Thailand’s gross domestic product and 20% of overall jobs. Almost 40 million foreign tourists visited Thailand in 2019, generating more than $60 billion in revenue, according to the central bank.

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