Thailand’s tourism income drops to next historic low in 2021

Total receipts from tourism in all of Thailand’s 77 provinces slipped to another historic low in 2021, declining by 69.6 per cent to 241.4 billion baht ($7.32 billion).
The revenue was mainly created by domestic travelers as international arrivals dropped to just around 430,000 last year from pre-pandemic numbers of almost 40 million visitors.
The tourism recession continued from 2020, when total receipts from 77 provinces plunged over 55.4 per cent.
Even though domestic tourism took place across the country, the income gap between Bangkok and other major provinces remained wide, according to Thailand’s tourism and sports ministry.
Bangkok receives most from tourists
The capital was on top on the income list with 62.7 billion baht, plummeting by over 75 per cent, while Chiang Mai followed second with a decrease of more than 53 per cent to 23.3 billion baht and Phuket third with 21.3 billion baht, a drop of over 80 per cent.
At the bottom, northern Nong Bua Lam Phu province, northeastern Amnat Charoen province and Samut Sakhon southeast of Bangkok, which is more an industrial province, earned the lowest tourism income at 58.24 million baht, 139.6 million baht and 142.2 million baht, respectively.
Hotel occupancy at just 32 per cent
Meanwhile, almost 42 per cent of hotel operators in Thailand remain concerned about the Covid-19 situation, even though more have started to reopen.
The hotel business operator sentiment index compiled by the Thai Hotels Association and the Bank of Thailand – which polled 200 operators nationwide in January – showed the ongoing impact from the pandemic as 49 per cent of hotels reported revenue less than 30 per cent of pre-pandemic levels.
The average occupancy rate in January dipped to 32 per cent from 37 per cent in December last year as the temporary suspension of the quarantine-free “Test & Go” programme put a break on new arrivals.
Cash flow problems for many allow only “casual employment”
Some 50 per cent of hotels had less income compared to December, while 53 per cent had cash flow to sustain them for less than three months, according to the survey.
Even though 73 per cent of the hotels have already returned to business, employment in the hotel sector continued to decline to two thirds of the 2019 level as half of the hotels turned to “casual employment” to reduce fixed costs amid the uncertain situation.

[caption id="attachment_38212" align="alignleft" width="300"] Phuket's Patong Beach, formerly the heart of the island's tourism scene, lies mostly empty since the start of the Covid-19 pandemic[/caption] Total receipts from tourism in all of Thailand’s 77 provinces slipped to another historic low in 2021, declining by 69.6 per cent to 241.4 billion baht ($7.32 billion). The revenue was mainly created by domestic travelers as international arrivals dropped to just around 430,000 last year from pre-pandemic numbers of almost 40 million visitors. The tourism recession continued from 2020, when total receipts from 77 provinces plunged over 55.4 per cent. Even though domestic tourism...

Total receipts from tourism in all of Thailand’s 77 provinces slipped to another historic low in 2021, declining by 69.6 per cent to 241.4 billion baht ($7.32 billion).
The revenue was mainly created by domestic travelers as international arrivals dropped to just around 430,000 last year from pre-pandemic numbers of almost 40 million visitors.
The tourism recession continued from 2020, when total receipts from 77 provinces plunged over 55.4 per cent.
Even though domestic tourism took place across the country, the income gap between Bangkok and other major provinces remained wide, according to Thailand’s tourism and sports ministry.
Bangkok receives most from tourists
The capital was on top on the income list with 62.7 billion baht, plummeting by over 75 per cent, while Chiang Mai followed second with a decrease of more than 53 per cent to 23.3 billion baht and Phuket third with 21.3 billion baht, a drop of over 80 per cent.
At the bottom, northern Nong Bua Lam Phu province, northeastern Amnat Charoen province and Samut Sakhon southeast of Bangkok, which is more an industrial province, earned the lowest tourism income at 58.24 million baht, 139.6 million baht and 142.2 million baht, respectively.
Hotel occupancy at just 32 per cent
Meanwhile, almost 42 per cent of hotel operators in Thailand remain concerned about the Covid-19 situation, even though more have started to reopen.
The hotel business operator sentiment index compiled by the Thai Hotels Association and the Bank of Thailand – which polled 200 operators nationwide in January – showed the ongoing impact from the pandemic as 49 per cent of hotels reported revenue less than 30 per cent of pre-pandemic levels.
The average occupancy rate in January dipped to 32 per cent from 37 per cent in December last year as the temporary suspension of the quarantine-free “Test & Go” programme put a break on new arrivals.
Cash flow problems for many allow only “casual employment”
Some 50 per cent of hotels had less income compared to December, while 53 per cent had cash flow to sustain them for less than three months, according to the survey.
Even though 73 per cent of the hotels have already returned to business, employment in the hotel sector continued to decline to two thirds of the 2019 level as half of the hotels turned to “casual employment” to reduce fixed costs amid the uncertain situation.
