TAT: Tariff may affect Indian tourism
The Tourism Authority of Thailand (TAT) anticipates growth of more than 10% for the Indian market until 2026, after recording a surge of 14.4% to 1.3 million as of July 20.
Tourism growth has been sluggish for most Asian markets this year.
"We need a period after the new US tariff rates for India start on Aug 1 to gauge the impact on the Indian economy and tourism demand," said Siriges-a-nong Trirattanasongpol, director of the TAT's New Delhi office.
Last year, Thailand claimed a 6.15% share of the Indian outbound market, following the United Arab Emirates (25%), Saudi Arabia (11%) and the US (6.9%).
During an overseas market briefing held by the TAT last week, the agency dubbed this a "bittersweet year" for the Indian market as more countries step in to seize a share of the 30 million outbound travellers.
The potential of this market is huge as the number of Indians travelling overseas is expected to post annual growth of 8% and reach 39 million in 2028. Their expenditure is forecast to increase 9% annually through 2030, noted the authority.
However, the situation over the next 18 months has become more challenging as other destinations offer cheaper airfares on new routes with increased frequencies, matching some Indian preferences for "pocket-friendly" trips, said Mrs Siriges-a-nong.
According to the air tickets portal Skyscanner, flights from India to Almaty in Kazakhstan dropped by 44% in 2025, as well as to Jakarta by 27% and to Singapore and Kuala Lumpur by 19%.
Airfare cost influenced 62% of Indians' travel decisions, compared with 65% for accommodation costs, while 50% of respondents chose hotel rooms that cost around 7,000 Indian rupees per night, or around 2,620 baht on average, according to Skyscanner.
For Thailand, the number of flights are projected to fully recover this year to the level in 2019 with 19,118 flights, rising 31.9% year-on-year for a capacity of 3.79 million seats. The Indian government already lifted restrictions on flight expansion to Thailand.
Eleven airlines operate direct flights from cities in India to three destinations in Thailand, with Bangkok accounting for 78% of the 374 weekly flights, while Phuket accounts for 19% and Krabi 3%.
"For the India market, it's necessary to grow value with volume, stimulating more spending from both metro cities and more areas, as Thailand already has flights connecting 18 cities in India to three destinations in Thailand," she said.
OFF THE RADAR
Mrs Siriges-a-nong said MakeMyTrip, one of the largest Indian agents providing market data, reported 23% of travellers have a preference for shopping and luxury, with Dubai and Singapore the most preferred destinations for these activities.
Searches for business-class flights in the international segment grew by 10%, according to the agent.
Unfortunately, Thailand is not yet considered a luxury destination among Indian tourists, she said.
Mrs Siriges-a-nong said Thailand still has room to grow the Indian luxury travel market as revenue from this segment is projected to reach US$124 billion by 2030, with a compound annual growth rate of 9.8% from 2024-2030.
According to the TAT, luxury tourists are mostly aged 35-65 and live in urban areas, taking 4-6 international trips a year. They are willing to spend for ultra-luxury travel, allocating more than $300 per day, noted the authority.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bangkok Post
3 hours ago
- Bangkok Post
Thailand records 6.56% drop in foreign tourists
Thailand's foreign tourist arrivals from Jan 1 to Aug 3 fell 6.56% from the same period a year earlier, the Ministry of Tourism and Sports reported on Tuesday. There were about 19.57 million foreign visitors during the period, the ministry said in a statement. China was the largest source market with 2.73 million visitors. Last week, the Finance Ministry cut its forecast for foreign tourist arrivals this year to 34.5 million from 36.5 million. There was a record of nearly 40 million visitors in 2019, before the coronavirus (Covid) pandemic. Thailand's foreign tourist arrivals from Jan 1 to June 29 fell 4.56% from the same period a year earlier. The Tourism Authority of Thailand (TAT) reported this week that the 1-million target set for the Middle East and African markets this year remains challenging due to geopolitical conflicts, but the country still has opportunities from new flight openings this winter.
Bangkok Post
7 hours ago
- Bangkok Post
Trump vows substantial India tariff hike over Russian oil buying
US President Donald Trump said he would be 'substantially raising' the tariff on Indian exports to the United States over the Asian nation's purchases of Russian oil, a move New Delhi slammed as unjustified in an escalating fight between the two major economies. 'India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits,' Trump wrote on social media on Monday. 'They don't care how many people in Ukraine are being killed by the Russian War Machine. Because of this, I will be substantially raising the Tariff paid by India to the USA.' Trump didn't say by how much he would increase the levy. Last week, he announced a 25% rate on Indian exports — one of the highest of any major economy — and vowed more duties if India continued to buy oil from Russia. The US president's warning comes ahead of an Aug 8 deadline for Russia to reach a truce with Ukraine, with the administration threatening so-called secondary sanctions on countries that purchase Russian energy. Ukraine's allies view those purchases as helping to prop up Russian leader Vladimir Putin's economy and undercutting pressure on Moscow to end a war that is now in its fourth year. India has been a top Trump target in the campaign to end the war. Prime Minister Narendra Modi — who previously enjoyed warm relations with Trump — has been defiant, urging Indians to buy local goods and signalling that his country will continue to buy Russian oil. In a social media post later on Monday, India's Ministry of External Affairs hit out at the European Union and the US for continuing to buy energy and other materials from Russia when 'such trade is not even a national compulsion.' It noted that India began buying oil from Russia because traditional supplies were diverted to Europe after the start of the war, and the US 'encouraged such imports.' 'The targeting of India is unjustified and unreasonable,' the ministry said. 'Like any major economy, India will take all necessary measures to safeguard its national interests and economic security.' India has morphed into a major buyer of Moscow's crude since the 2022 invasion of Ukraine, spurred on by discounts. On average, the country has been buying Russian crude at a rate of about 1.7 million barrels a day so far this year, according to tanker tracking data compiled by Bloomberg. India exported about 1.4 million barrels a day of refined fuels in the first half of this year, according to Kpler data compiled by Bloomberg. Diesel or gasoil cargoes made up approximately 40% of total fuel exports, while gasoline and blending components comprised about 30% of the shipments. Still, it's hard to quantify how much of India's oil exports derive specifically from Russian crude because refiners generally consume an array of barrels and then sell an even wider range of fuels. The EU recently launched a package of sanctions that will ban the purchase of fuel made from Russian crude, but traders are still waiting for the body to detail how the measures would work in practice. At least four tankers discharged millions of barrels of Russian crude at Indian refineries at the weekend, a sign the closely scrutinised deliveries are continuing as normal. Any disruption to Indian purchases of Russian oil could force it to look elsewhere for supplies. Last week, the country's largest processor bought several million barrels of crude from the US and United Arab Emirates in sudden large purchases that were set to be delivered relatively quickly, people familiar with the matter said. Under the president's deadline for Putin to halt the fighting in Ukraine, secondary sanctions targeting buyers of Russian oil could be imposed Friday. 'Secondary sanctions and tariffs against those that are paying for this war — like China, India and Brazil — by buying the oil that Russia is producing, is an obvious next step to try and bring this war to an end,' Matt Whitaker, the US ambassador to NATO, told Bloomberg Television. 'This is really going to hit them where it counts, and that is in their main revenue source, which is the sale of oil to these countries.' Trade talks Trump's escalating tariffs stunned India after months of negotiations. The president has intensified his rhetoric against India, assailing its levies and other barriers to US goods. He's also hit out at the nation's energy purchases from Russia and participation in the Brics group of developing economies, in particular over the bloc's consideration of alternatives to the US dollar. The Indian government has indicated it intends to continue talks with the US in hopes of securing lower tariffs. India is considering ramping up natural gas purchases from the US and increasing imports of communication equipment and gold. Officials see those moves as helping to narrow India's trade surplus with the US, a key concern for Trump. The US had a trade deficit with India of about $43 billion last year, the 11th largest, according to figures from the International Monetary Fund. But there are numerous sticking points, with Modi reluctant to open up sensitive sectors like agriculture and dairy to the US. Relations between Modi and Trump have deteriorated in the president's second term. After clashes earlier this year between India and Pakistan, Trump threatened to block access to US markets if the countries did not halt the fighting. Trump has claimed his actions brought peace, a view that has rankled Modi's government. Pressure on Russia India has been caught in the middle of Trump's enhanced focus on ending Russia's war in Ukraine. The president vowed to quickly end Russia's invasion but those efforts have been stymied by Putin, who has responded with only maximalist demands for Ukrainian territory and refused face-to-face discussions with Ukrainian President Volodymyr Zelenskiy. Trump has grown increasingly frustrated with Putin, leading to his latest threats to impose economic penalties on Moscow. He has floated tougher sanctions in the past only to delay action in hopes of preserving negotiations. Trump told reporters Sunday that special envoy Steve Witkoff would go to Russia this week — on Wednesday or Thursday — for further discussions. Tensions between Washington and Moscow intensified last week when Trump said he had moved two nuclear submarines in response to 'highly provocative statements' from former Russian President Dmitry Medvedev.
Bangkok Post
12 hours ago
- Bangkok Post
TAT sees hope in winter flight prospects
The 1-million target set for the Middle East and African markets this year remains challenging due to geopolitical conflicts, but Thailand still has opportunities from new flight openings this winter, according to the Tourism Authority of Thailand (TAT). Hatsanai Chaisri, marketing manager for the Middle East and Africa at TAT's Dubai office, said growth in the Middle East market has been slow, particularly among family groups and first-time visitors. They are hesitant to travel abroad due to geopolitical uncertainty in the region, as well as the 12-day war between Israel and Iran, which took place in June, even though it ended with a ceasefire, said Mr Hatsanai. He said the agency expects travel momentum to rebound in August, which aligns with the school break for summer -- a high season for the market. TAT Dubai is responsible for marketing in 13 Middle East and nine African markets, mostly in North Africa, along with South Africa. Prior to the 12-day war, arrivals from the market had strongly increased since the beginning of the year, but growth has weakened with a year-on-year increase of roughly 2%. As of July 27, the markets under the TAT Dubai office tallied 497,697, growing 2.22% year-on-year. To achieve the 1-million target set for the TAT's Dubai office, it must secure at least 11% growth year-on-year in 2025, he said. Key drivers include Saudi Arabia, the United Arab Emirates and Oman, which are expected to generate 243,000, 181,000 and 118,030 arrivals, respectively, this year. Mr Hatsanai said a strong flight recovery of over 95% compared to the level recorded prior to the pandemic could also be a crucial factor. Currently, 11 airlines operate direct flights between the region and Thailand, serving roughly 231 flights per week and 288,380 seats per month. There are three new flights scheduled for this winter, namely Abu Dhabi-Krabi and Abu Dhabi-Chiang Mai via Etihad, and Sharjah-Krabi via Air Arabia. Typically, the Gulf Cooperation Council (GCC) market accounts for 70% of overall arrivals from the region each year, said Mr Hatsanai. Major segments are families and millennials, with high average spending of 9,600 baht a day or more than 100,000 baht a trip. They mostly choose five-star or luxury hotels and enjoy shopping, beaches and nature, as well as health and medical tourism. A decisive factor is halal-friendly trips offering halal food, prayer facilities and exclusive programmes or privacy options, such as private pool villas and VIP airport transfers, he said. As the outbound market among GCC countries is forecast to grow by 7% annually over the next five years, tourism operators are urged to adapt to changing behaviour. They have started using AI to plan their trips and are gravitating towards sustainable travel. Providing content and advertisements in Arabic is recommended for Thai operators, as they have higher click-through rates than English. Next month, the TAT will host the Middle East Trade Meet in Bangkok and Koh Samui, and organise a luxury roadshow to Kuwait and Bahrain in November. Next year, one of its flagship projects is Wellness Escapes in Amazing Thailand, targeting the Saudi Arabia and Oman markets in particular. Opportunities in other markets include Morocco, with a population of over 38 million. Arrivals surged after visa requirements were lifted for this market last year. A large portion of them are honeymooners. However, growth in some countries remains challenging due to sluggish economies and devalued currencies, such as Iran and Egypt.
