Thailand’s recent drop from 36th to 47th place in the World Economic Forum’s (WEF) latest Travel and Tourism Development Index has prompted calls for significant investment and strategic changes within the country’s travel and hospitality sector. The disappointing ranking, coupled with a meager 1.5% growth in the first quarter of 2024, highlights the urgent need for improvement.
The WEF index provides an analytical overview of a nation’s travel and tourism industry, evaluating sustainability, socioeconomic, and environmental factors, and incorporating stakeholder consultations. It is based on five pillars: Business Environment, Safety and Security, Health and Hygiene, Human Resources and Labour Market, and ICT Readiness.
The index’s findings pose a challenge to Thailand’s current tourism strategies, despite efforts to streamline visa processes and promote the country’s attractions. Industry leaders believe more substantial improvements are necessary.
Infrastructure Improvements Essential
Sandy Liw, General Manager of InterContinental Khao Yai Resort, emphasizes the need for enhanced infrastructure, particularly in less-known locations. “The government may want to consider upgrading and expanding transportation infrastructure, including airports, roads, and public transit systems, to improve accessibility and convenience for tourists. This is especially important for remote areas like Khao Yai,” Liw suggested. He also highlighted the potential impact of completing new highways or introducing high-speed trains and providing investment incentives in tourism infrastructure and services.
Opportunity for Collaboration and Innovation
Sukamal Mondal, Area General Manager for Amari Bangkok and Shama Properties Bangkok at Onyx Hospitality Group, views the index’s results as a wake-up call. “The drop in Thailand’s ranking is certainly a matter of concern. But, we see this report as a call to action to enhance our collective efforts in improving the country’s tourism appeal,” Mondal stated. He underscored the necessity of ground-level funding to upgrade transportation networks and modernize accommodation facilities and advocated for effective public-private partnerships to address ongoing issues. Focusing on sustainability and safety in tourism practices, Mondal believes, will draw more tourists and enhance their experience.
Broadening the Focus Beyond Major Tourist Centers
Anne Arrowsmith, General Manager at 137 Pillars House Chiang Mai, recommends a broader strategic approach to regional tourism. “Regional tourism requires a bigger spotlight and a broader strategic approach, especially with respect to increased and more geographically diverse international flight arrivals. Chiang Mai is a prime example,” she explained. Arrowsmith pointed out the surge in hotel supply in Chiang Mai and the need to attract key airline partners from the Middle East, India, and beyond.
Arrowsmith also suggested leveraging big international events to raise Thailand’s profile, similar to how Formula 1 has boosted Singapore’s appeal. “It would be good for the country to secure key sporting events to gain broader appeal. Look what F1 did for Singapore and how Saudi Arabia is investing heavily in elevating its appeal through golf and tennis events,” she said.
The collective response from Thailand’s hospitality leaders underscores the need for a multifaceted approach to address the issues highlighted by the WEF index. By investing in infrastructure, fostering public-private partnerships, and strategically promoting regional and international events, Thailand aims to improve its global tourism standing and ensure sustainable growth.