Thailand's tourism confidence declines due to flood damage, reduced spending

By Hoang Vu   October 10, 2024 | 10:20 pm PT
Thailand's tourism confidence declines due to flood damage, reduced spending
An aerial view shows trees and houses in the aftermath of floods, in Phrae Province, Thailand, Aug. 24, 2024. Photo by Thailand's Department of Royal Rainmaking and Agricultural Aviation via Reuters
Thailand's tourism confidence index has dropped in the third quarter of this year, impacted by widespread flooding, reduced domestic spending, and the off-peak season for international tourists.

The index for the July-September period was recorded at 68, showing a slight year-on-year decline from 69, and a more significant decrease from 79 in the previous quarter, according to the Tourism Council of Thailand.

The ongoing floods, especially in the northern region, have caused substantial economic damage, with estimated losses exceeding 500 million baht (US$15 million), said Chamnan Srisawat, president of the council, as reported by the Bangkok Post.

Hotels were particularly affected by the September floods, with an average occupancy rate of 54% during the third quarter, Thaiger reported, adding only larger, international hotels managed to exceed the industry average.

The council expects the index to rise to 80 in the fourth quarter, driven by a surge in pre-bookings for the peak travel season and increased flight availability towards the year's end.

So far this year, Thailand has welcomed nearly 27 million foreign tourists and aims to reach 36 million by year's end.

Tourism revenue for 2024 is projected to reach up to 2.8 trillion baht (US$84 billion).

 
 
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