Cuisine, Culture and Sustainability: Study Identifies Tourism Trends

Krungthai Bank’s research centre, Krungthai COMPASS, has revealed six new travel trends designed to attract high-potential tourists with significant spending power to Thailand. The aim is to generate economic value of over 135 billion baht.

These trends were identified in a recent insight study released during a press briefing on Tuesday, titled “Exploring Modern Travel Trends as Further Opportunities for the Thai Tourism Sector”.

The study sought to maximise Thailand’s tourism potential, currently the country’s sole engine driving growth and revenue generation.

Foreign tourist numbers are estimated to continue recovering, with a chance of reaching 40 million – the pre-pandemic level – by 2025. This figure is expected to support the Thai tourism sector’s revenue, reaching 3 trillion baht in that same year.

However, to attract high-spending tourists and generate at least 135 billion baht in additional value for the tourism industry, Krungthai COMPASS identified six key trends to which travel operators should adapt their services.

• Gastronomy: Street food, particularly popular with foreign tourists, has seen an 18.1% increase compared to the pre-Covid period.
• Cultural tourism: Events like the recent Songkran Festival showcased the potential of cultural tourism. More than 780,000 tourists attended, generating up to 2.88 billion baht.
• Film tourism: Travelling in the footsteps of films, TV shows, or music videos is a growing trend. For example, Lisa’s song “Rockstar” inspired many tourists to visit Yaowarat Road for photos.
• Sustainable tourism: According to a Booking.com survey, three-quarters of modern travellers plan to travel sustainably in the next year. Environmental stewardship, wellness and an ageing society all contribute to new and interesting travel trends focused on sustainability.
• Digital nomad tourism: This group, a burgeoning market driven by the “Workcation” trend, offers significant potential. The average cost per digital nomad is nearly twice that of a general tourist.
• Wellness tourism: This sector has the potential to grow alongside the increasing number of elderly people and the global trend towards preventative healthcare.

Shifts in tourism behaviour observed

Thana Tunlayakitjawat, an analyst with the research centre, explained that tourist behaviour has shifted from mass tourism pre-pandemic to a more specialised focus, aligning with the government’s ongoing “Soft Power” policy.

“Thai food and historical attractions are becoming new-era travel trends, unlocking opportunities to create additional value for the Thai tourism sector,” he said.

Adapting to modern trends vital

Another of the centre’s analysts, Weeraya Tongsuar, emphasised that Thai businesses should adapt to seize opportunities presented by modern tourism trends.

She suggested adjusting products and services to meet the specific needs of tourists. For example, hotels could renovate to meet Green standards and join the Sustainable Tourism Acceleration Rating (STAR) project to cater to nature-loving tourists.

She also recommended implementing innovative technologies, such as robots in restaurants, to address labour shortages.

Policy recommendations for the government sector

Tongsuar further suggested policy considerations for the government to further promote tourism:

• Target high-potential markets: This could involve expanding health insurance options for digital nomads applying for the Destination Thailand Visa (DTV).
• Promote year-round travel: Encourage travel to secondary cities, especially for wellness tourists (often elderly) who may be more flexible with travel dates.
• Infrastructure development: Accelerate development to improve connections between tourist destinations both domestically and internationally. This includes creating a robust safety system to build confidence and attract more visitors.

Tourism crucial to growth

Citing the recent decline in Thai GDP from 2.6% to 2.3% this year due to a weaker-than-expected export sector, Phacharaphot Nuntramas, Krungthai Bank vice president and chief economist, emphasised the critical role of tourism in the Thai economy.

There are clear signs of recovery. The number of foreign tourists is expected to reach 36.5 million in 2024 and 40 million in 2025, returning to pre-pandemic levels. While the recovery of Chinese tourists may be slower (65%-90% of pre-pandemic levels), Thailand’s tourism sector will be supported by growth in other key markets, including Malaysia, India, Russia, South Korea, Europe and the Middle East,” he said.

This positive momentum, he continued, should generate total tourism income of around 2.65-3 trillion baht in 2024-2025.

Despite income continuing to be concentrated in major tourist cities, income distribution in secondary provinces has begun to improve.

This is reflected in the increase of spending in secondary cities to approximately 13.4% of total tourism sector revenue in the first half of 2024, up from 9.2% in the pre-Covid period. The top five most popular secondary cities are Suphan Buri, Samut Songkhram, Chiang Rai, Chanthaburi and Udon Thani. Currently, the number of tourists has recovered to 130% to 343% of pre-Covid levels, indicating increased interest from both Thai and foreign tourists in visiting secondary provinces.

Via: The Naiton