Thais Ground Overseas Travel Plans Amid Spending Power Squeeze

Thailand’s outbound travel market is experiencing a slowdown in the latter half of this year due to a decline in consumer spending power, according to Charoen Wangananont, president and board committee member of the Thai Travel Agents Association (TTAA).

In an exclusive interview with Krungthep Turakij, Charoen explained that economic uncertainties have prompted many Thais to postpone overseas travel plans to avoid additional expenses during the downturn. Consequently, the TTAA anticipates a subdued outbound market for the remainder of the year, with the typically busy fourth quarter expected to be particularly weak.

“We initially projected that around 7-8 million Thais would travel abroad in 2024, well below the 12 million in 2019 before the COVID-19 pandemic. However, we need to reassess the situation based on the performance of the fourth quarter,” he said.

To stimulate the market, the TTAA typically organizes two major consumer travel fairs – the Thai International Travel Fair (TITF) – in Bangkok each year. However, due to the current economic climate and weakened consumer spending, the association has canceled this year’s mid-year event for the first time in a decade. The next TITF is scheduled for January 16-19.

Despite the overall downturn, China has emerged as a popular destination for Thai travelers, primarily due to affordable tour packages. The implementation of a permanent visa exemption between Thailand and China from March 1 has contributed to a significant surge in visitor numbers, with an estimated 1 million Thai people expected to travel to China this year. However, Charoen cautioned that the China market may slow down in the coming months.

Japan is projected to be the top destination for Thai tourists in 2024, with an estimated 1.2 million visitors. Other popular destinations include Southeast Asian countries such as Malaysia, Vietnam, and Laos, while traditional favorites in East Asia, including South Korea, Taiwan, and Hong Kong, have slipped out of the top five.