Latest news with #SummerBlastChina&OverseasMarket
Bangkok Post
09-07-2025
- Business
- Bangkok Post
Impact of tariff hikes on tourism likely to unfold next year
Tourism operators view the US's tariff policy as indirectly hampering Thai tourism in the form of reduced spending, but this impact is not expected to unfold until next year, as many tourists have already booked trips for the upcoming high season. They have also suggested the Thai government use this opportunity to upgrade the country's tourism infrastructure, develop new attractions to remain competitive with Vietnam, and accelerate the 350-million-baht chartered flight incentive to prevent a freefall in arrivals. Rangsiman Kingkaew, president of the Tourism Council of Phuket, said the economies of major inbound markets to Thailand, such as South Korea and Japan, had been stunned by the US's latest tariff rates, although there's still room for negotiation until the end of this month. Trade tensions between the US and China also persist, which could result in higher living expenses and increased prices of goods for US residents, leading to a reduction in spending and a slowdown in travel, said Mr Rangsiman. He said domestic tourism, a key driver during the low season, is also being hampered by the 36% tariff rate imposed on Thailand, as the policy would hinder the export sector and overall GDP growth. "These developments will undeniably impact the global tourism industry," said Mr Rangsiman. "However, the major tourism slowdown might occur next year, as many tourists, especially long-haul travellers, have already booked their trips to Thailand and Phuket for the high season." He said that during this period of uncertainty, the government should take the opportunity to address weaknesses in the tourism sector. These include addressing the country's image in relation to safety and incomplete infrastructure projects. Mr Rangsiman said Thailand's rivals, such as Vietnam, have been heavily investing in new attractions and infrastructure, but Thailand's tourism development has been inconsistent and continues to rely primarily on its existing charms. Thanapol Cheewarattanaporn, president of the Association of Thai Travel Agents (Atta), said slow forward bookings, particularly from short-haul and Chinese markets, during the second half of this year could be further affected by the severe US tariffs imposed on multiple countries. The short-haul market is a vital source for Thai tourism, typically accounting for over 70% of inbound visitors. Mr Thanapol said it was very disappointing that the subsidy for the chartered flight programme under the 750-million-baht "Summer Blast China & Overseas Market" had not yet been officially launched. He said many Chinese travel agents had asked Atta about this project as they are reluctant to launch tour packages to Thailand at present. "Other countries have been consistently promoting inbound tourism, notably China, which has extended visa-free entry to more nations and continues to offer promotional travel packages," he said.
Bangkok Post
08-07-2025
- Business
- Bangkok Post
Short-haul bookings remain weak
Airlines report forward bookings for short-haul markets for the remainder of this year are weak, in contrast to the long-haul segment, while some carriers expressed interest in joining the Tourism Authority of Thailand's (TAT) stimulus campaign. Pattaraanong Na Chiangmai, deputy governor of international marketing for Asia and South Pacific at TAT, said tourism in the second half is still marred by several challenges. Forward bookings for flights across all short-haul markets between June and December have been reduced year-on-year, according to Forwardkeys, an air traffic data company. Asia and South Pacific were down by 22% year-on-year to 849,034 seats, while Southeast Asia, South Asia and Oceania decreased by 16% to 303,325 seats. The East Asia market contracted by 25% to 528,480 seats, including a 40% nosedive on Chinese routes to 109,676 seats. During the first six months, Thailand welcomed 16.6 million foreign tourists, of which 11.1 million were short-haul visitors, far below the target of 28.2 million in 2025. However, long-haul markets gained strong momentum, with 5.5 million arrivals in the first half, said Chiravadee Khunsub, deputy governor for Europe, Africa, the Middle East and the Americas at TAT. She said Thailand is on track to secure 10.7 million long-haul tourists as expected this year. Mrs Chiravadee said forward bookings from these markets in the third quarter tallied 713,491 seats, increasing from 677,211 seats in the corresponding period last year. Passengers from Europe, the Americas and Africa are expected to increase year-on-year. However, passengers from the Middle East are set to contract by 9% to 97,246 seats, due to geopolitical conflicts. Ms Pattaraanong said the TAT will soon launch a 750-million-baht subsidy for airlines and tour operators called "Summer Blast China & Overseas Market" aiming to attract over 790,000 visitors in one year. Nuntaporn Komonsittivate, head of commercial at Thai Lion Air, said the airline is interested in participating in the joint-promotion programme for commercial flights. She said there is room to increase foreign passengers in its existing flights to boost tourism, whether from Indonesia, India or China, with Thailand experiencing a sharp decline since the beginning of the year. At present, Thai Lion Air's Chinese flights secured about 60-70% load factor. Anlee Do, general manager of Thailand, Vietnam, Philippines and the Mekong Region at Lufthansa Group, said the airline may need to study the TAT's proposal first before deciding to join. At present, the group is committed to daily operations across its three airlines -- Lufthansa, Swiss and Austrian Airlines -- to Thailand this summer.
Bangkok Post
03-07-2025
- Business
- Bangkok Post
Early birds to benefit most from planned tourism subsidies
The 750-million-baht subsidy for airlines and tour groups to stimulate the tourism industry will be distributed on a first-come, first-served basis, aiming to generate 33.5 billion baht in revenue, according to the Tourism Authority of Thailand (TAT). The 'Summer Blast China & Overseas Market' programme was among seven projects worth 3.96 billion baht the government allocated to the TAT on June 24. These seven projects were estimated to generate 200 billion baht for the economy, creating 226,102 jobs and earning 7.78 billion baht in tax collection. The result should be a 49-fold return on investment, said TAT governor Thapanee Kiatphaibool. The largest chunk of stimulus funding is 1.76 billion baht for the co-payment domestic tourism scheme. However, it got off to a rough start when the online registration system crashed and needed to be overhauled to meet heavy demand. Another 800 million baht is allotted for promotional campaigns with online travel agents. For the Summer Blast scheme, 350 million baht is earmarked for chartered flights from China, Taiwan and South Korea, with a target of adding 140,000 tourist arrivals via 1,000 flights, said Pattaraanong Na Chiangmai, deputy governor for international marketing for Asia and the South Pacific at the TAT. She said each chartered flight recording a load factor of more than 80% is eligible to receive a 350,000-baht subsidy, while those attaining a 60-79% load factor are eligible for a 300,000-baht subsidy. The TAT expects this programme to help penetrate 15 second-tier cities in China and persuade operators to fly to less busy airports in Thailand, such as Krabi and Samui. Another 250 million baht is allocated to a joint promotional campaign with commercial airlines, aiming to bringing in at least 500,000 inbound travellers. Ms Pattaraanong said in addition to Thai carriers, international airlines are also eligible to benefit from this scheme, and can apply for the subsidy based on three conditions. Airlines can submit their proposals requesting a subsidy if they are able to increase frequencies of their existing flights, open new routes to Thailand, or increase their load factor compared with their performance over the last three months. She said airlines wishing to join the scheme must commit to attaining the passenger number targets set by the TAT. Meanwhile, tour companies worldwide can participate by arranging groups of at least 30 people to travel to Thailand and stay for a minimum of four nights. The incentive for tour companies was set at 150 million baht, with a target of attracting 150,000 tourists. Ms Pattaraanong said the TAT discussed the scheme with local airlines, while the TAT's overseas offices plan to publicise the campaign to international airlines within their sphere of influence. She said every airline has shown an interest in joining the scheme and they are eager to start as soon as possible. However, the TAT is still awaiting a budget allocation, which is expected in the middle of the month, said Ms Pattaraanong. This means it is likely these projects will commence in August, she said, with the duration running through July 2026.
Bangkok Post
03-07-2025
- Business
- Bangkok Post
Early birds to benefit most from planned TAT subsidies
The 750-million-baht subsidy for airlines and tour groups to stimulate the tourism industry will be distributed on a first-come, first-served basis, aiming to generate 33.5 billion baht in revenue, according to the Tourism Authority of Thailand (TAT). The 'Summer Blast China & Overseas Market' programme was among seven projects worth 3.96 billion baht the government allocated to the TAT on June 24. These seven projects were estimated to generate 200 billion baht for the economy, creating 226,102 jobs and earning 7.78 billion baht in tax collection. The result should be a 49-fold return on investment, said TAT governor Thapanee Kiatphaibool. The largest chunk of stimulus funding is 1.76 billion baht for the co-payment domestic tourism scheme. Another 800 million baht is allotted for promotional campaigns with online travel agents. For the Summer Blast scheme, 350 million baht is earmarked for chartered flights from China, Taiwan and South Korea, with a target of adding 140,000 tourist arrivals via 1,000 flights, said Pattaraanong Na Chiangmai, deputy governor for international marketing for Asia and the South Pacific at the TAT. She said each chartered flight recording a load factor of more than 80% is eligible to receive a 350,000-baht subsidy, while those attaining a 60-79% load factor are eligible for a 300,000-baht subsidy. The TAT expects this programme to help penetrate 15 second-tier cities in China and persuade operators to fly to less busy airports in Thailand, such as Krabi and Samui. Another 250 million baht is allocated to a joint promotional campaign with commercial airlines, aiming to bringing in at least 500,000 inbound travellers. Ms Pattaraanong said in addition to Thai carriers, international airlines are also eligible to benefit from this scheme, and can apply for the subsidy based on three conditions. Airlines can submit their proposals requesting a subsidy if they are able to increase frequencies of their existing flights, open new routes to Thailand, or increase their load factor compared with their performance over the last three months. She said airlines wishing to join the scheme must commit to attaining the passenger number targets set by the TAT. Meanwhile, tour companies worldwide can participate by arranging groups of at least 30 people to travel to Thailand and stay for a minimum of four nights. The incentive for tour companies was set at 150 million baht, with a target of attracting 150,000 tourists. Ms Pattaraanong said the TAT discussed the scheme with local airlines, while the TAT's overseas offices plan to publicise the campaign to international airlines within their sphere of influence. She said every airline has shown an interest in joining the scheme and they are eager to start as soon as possible. However, the TAT is still awaiting a budget allocation, which is expected in the middle of the month, said Ms Pattaraanong. This means it is likely these projects will commence in August, she said, with the duration running through July 2026.
