Thailand’s tourism industry has been a key driver of the country’s economy for decades now. The sector has contributed significantly to the GDP, foreign exchange earnings, and job creation in Thailand.
But just how much of Thailand’s economy is based on tourism? Let’s take a closer look.
Overview of Thailand’s Tourism Industry
Thailand’s tourism industry has been growing at an impressive rate over the years. In 2019, the industry contributed around 20% to the country’s GDP.
This figure includes both direct and indirect contributions from the industry. Direct contributions refer to the revenue generated from tourist spending on accommodation, food and beverages, transportation, and activities within Thailand. Indirect contributions refer to revenue generated from supporting industries such as construction, agriculture, and retail.
Number of Tourists Visiting Thailand
Thailand is a popular tourist destination due to its rich cultural heritage, beautiful beaches, vibrant nightlife, and affordable prices. The number of tourists visiting Thailand has been increasing steadily over the years. In 2019, Thailand welcomed around 39 million international tourists which was a new record high for the country.
Revenue Generated by Tourism Industry
The tourism industry is one of the largest sources of foreign exchange earnings for Thailand. In 2019, it generated approximately $60 billion in revenue which accounted for around 12% of total exports. This revenue comes from various sources such as hotel bookings, airfare sales, and tourist activities.
Impact of COVID-19 on Thai Tourism Industry
The COVID-19 pandemic has had a significant impact on Thailand’s tourism industry. With travel restrictions in place globally and lockdowns being implemented in many countries including Thailand itself; tourist numbers have plummeted since early 2020.
Projected Losses Due to COVID-19
According to the Tourism Authority of Thailand (TAT), the country is expected to lose around $47 billion in tourism revenue due to COVID-19 in 2020. This represents a decline of around 80% from the previous year which is a staggering figure.
Conclusion
Thailand’s tourism industry has been a major contributor to the country’s economy for many years. However, with the ongoing COVID-19 pandemic, the sector is facing unprecedented challenges. While the industry is expected to recover eventually, it may take some time before tourist numbers return to pre-pandemic levels.