Thriving Tourism in Thailand
In 2019, Thailand and Bangkok—the capital of the country—were the ninth most visited country and the second most visited city, respectively, in the world, with a total of some 38 million and 26 million arrivals (Street, 2019; Wright, 2020). Thailand is a Southeast Asian country, hosting a population of 69.3 million, known for its tourism and hospitality. Not only does Thailand welcome inbound travels, but also the fairly large population size suggests that the country has plentiful demand for domestic tourism (Fitch Solutions, 2020). The revenues of the Thai tourism industry increased by 8.2 percent in 2018, reaching a total of US$ 116.1 billion (MarketLine, 2020) (see Tables 1 and 2). The lucrative revenues represented a compound annual growth rate (CAGR) of 6.8 percent from 2014 to 2018. Comparatively, the tourism industries of China and Indonesia, the largest East Asian and Southeast Asian countries, grew only by 5.6 percent and 4.5 percent, respectively, in terms of CAGR during the same course (MarketLine, 2020).
Table 1. Thailand travel and tourism industry value 2014-18 (CAGR: 2014-18)
| Year | $ Billion | THB Billion | € Billion | Percent Growth |
| 2014 | 89.2 | 2,883.0 | 75.6 | - |
| 2015 | 93.0 | 3,006.6 | 78.8 | 4.3 |
| 2016 | 99.3 | 3,209.4 | 84.1 | 6.7 |
| 2017 | 107.3 | 3,467.2 | 90.0 | 8.0 |
| 2018 | 116.1 | 3,752.0 | 98.4 | 8.2 |
Source: MarketLine
Table 2. Thailand travel and tourism industry geography segmentation
| Geography | US$ Billion in 2018 |
| China | 975.8 |
| Japan | 485.2 |
| India | 213.4 |
| Thailand | 116.1 |
| Indonesia | 63.1 |
| Rest of Asian-Pacific countries | 1570.9 |
| Total | 3,424.5 |
Source: MarketLine
In 2019, tourism uptick was decreasingly positive, at 4.3 percent year-on-year, since mainland Chinese tourists shunned Thailand as a travel destination after the 2018 Phuket ferry disaster, wherein two tourist boats capsized during a sudden storm resulting in 47 deaths, alongside the then rising Thai currency–BHAT (THB). Despite these challenges, Thai tourism has proved its resilience, where the industry enjoyed a double-digit annual growth rate during the years despite the Bangkok bombing in 2015 and the death of the country’s monarch (i.e., King Bhumibol Adulyadej) in 2016 (Fitch Solutions, 2020).
To stimulate domestic and inbound travels, Thailand launched a series of policies. For example, the Tourism Authority of Thailand (TAT) has regularly organised the Thailand Tourism Festival in Lumphini Park, Bangkok, in order for tourists to explore Thai cultures. Moreover, the government has removed the visa extension fees and reduced the visa on arrival application fees from 21 countries, including China and India. Such policies have prompted international tourists to stay longer and consume more in the country (MarketLine, 2020). Their consumptions include spending on food and accommodations, where the food services and hotels/motels segments of the industry earned as much as US$ 28.7 and US$ 28.3 billion tourism-related revenues respectively (MarketLine, 2020) (see Table 3). Thai government’s endeavors to boost its countries’ tourism development suggest the importance of tourism economy for economic sustainability and growth. Such an understanding motivates the design of this reviewed chapter where existing literature and reports are studied to explore how heavily the outbreak of COVID-19 has impacted the Thai economy.
Table 3. Thailand travel and tourism industry category segmentation
| Category | 2018 |
| US$ Billion | % |
| Foodservice | 28.7 | 24.7 |
| Hostels & Motels | 28.3 | 24.3 |
| Casino & Gaming | 25.5 | 22.0 |
| Travel Intermediaries | 23.0 | 19.8 |
| Airlines | 10.4 | 8.9 |
| Passenger Rail | 0.2 | 0.2 |
| Total | 116.1 | 99.9 |
Source: MarketLine
On one hand, Thailand’s travel and tourism industry had been growing between 2014 and 2018, demonstrating that the country could continue to capitalize on the industry to earn lucrative revenues (see Figure 1). On the other hand, the growth rates had been flattening during the course, possibly leading to uncertainty of the Thai economy, should any regional or global challenges discouraging international travels and tourism and domestic consumption occur in the proceeding years. The occurrence of one of the arguably most sizable public health challenges in modern history—the outbreak of the coronavirus (COVID-19)—from December 2019, has caused a cloud of uncertainty and financial difficulties towards the development of the Thai economy. In this chapter, the author summarizes and evaluates the existing literature and reports, outlining and analysing how the public health crisis has had an adverse influence on the Thai economy in the first few months of the outbreak of the pandemic due to Thailand’s undue reliance on tourism. The author then suggests public policies that help local businesses and Thai nationals to weather the storm of economic hardships.
Figure 1. Thailand travel and tourism industry value: $ billion, 2014-18