Thailand hits 10 million visitors in 2022 as tourism sector recovers

Thailand celebrated the arrival of its 10 millionth international visitor of 2022 on Saturday, according to the tourism authority, as the kingdom consolidated the recovery of its Covid-battered travel sector.

Thailand welcomed some 40 million people in 2019, but then the pandemic hit and travel was decimated as nations tightened border controls to contain the coronavirus.

With those restrictions easing worldwide Thailand’s travel numbers have begun a slow recovery and the government expects to generate nearly $16 billion in tourism revenue this year.

Traditional dancers and drummers at Bangkok’s Suvarnabhumi International Airport on Saturday welcomed passengers arriving on a Saudi Arabian Airlines flight that authorities believe clocked the 10-million milestone.

“The sky is open,” Thai Prime Minister Prayut Chan-O-Cha said in a speech at the airport.

“We would like to build confidence that Thailand is still one of the (top) tourist destinations of people around the world.”

Finance minister Arkhom Termpittayapaisith said this week that visitor numbers were expected to grow next year too.

Government figures suggest Thailand would welcome roughly 23 million tourists in 2023, while some analysts believe a full recovery in tourist numbers could happen in 2024. Thai hotel owners and restauranteurs have breathed a sigh of relief as business has slowly picked up.

Marisa Sukosol, president of the Thai Hotels Association, welcomed the 10 million travellers milestone “after two years and a half of pain”.

“I think next year we will see continuous momentum of growth,” she said, pointing to the return of tourists from Russia and across the Asia-Pacific region.

But she cautioned against over-optimism -- economic stagnation as well as lingering pandemic threats continue to impact the tourism sector.

While Thailand has benefited from the loosening of travel restrictions by other nations, its tourism industry has also been affected by the global economic slowdown and persistent inflation.

Recovery in the tourism sector is also heavily dependent on China relaxing international travel rules, Thai officials have said.

China was previously the biggest source of foreign tourists for Thailand.

Thailand’s economy remains firmly on the path to recovery despite global uncertainty, and further interest rate hikes will be gradual to ensure that recovery continues, the finance minister said on last Wednesday.

Southeast Asia’s second-largest economy is stable, with relatively low interest rates, sufficient liquidity and strong fiscal and financial positions, Arkhom Termpittayapaisith told a business forum.

“The Thai economy has proved once again that it is highly resilient and can weather the storms,” he said, adding that annual third-quarter growth of 4.5% was the fastest pace in more than a year.

Thailand’s economy is expected to grow 3.4% this year and 3.8% next year, with the tourism sector a key driver, Arkhom said, citing the ministry’s forecasts.

However, he earlier said the economy may not reach a forecast growth of 3.8% next year due to a global economic slowdown, but this year’s outlook should be achieved.

Thailand’s economic recovery has lagged that of other Southeast Asian countries, with its tourism sector only starting to rebound this year. Last year’s growth of 1.5% was among the slowest in the region.

With the economy in recovery, the central bank will gradually hike interest rates, and fiscal policy will be more targeted in supporting growth and tackling inflation, Arkhom said.

A joint business group on Wednesday predicted growth of 3.2% this year and 3.0-3.5% next year as the tourism sector picks up pace.

Separately, Thailand’s economic outlook remains positive next year despite global headwinds, economists said at the forum “Thailand Insight 2023: Unlocking the Future” taking place on December 7 in Bangkok.

Attending the forum held by the Bangkok Post, Tim Leelahaphan, an economist for Thailand and Vietnam at Standard Chartered said that the bank is very optimistic about the country’s economic outlook despite negative factors across the world.

He said Thailand’s unique domestic factors could provide options for businesses and asset managers as the country prepares for elections that are expected next year.

Its two main growth-driving factors in 2023 are tourism recovery and post-election economic stimulation which is expected to boost domestic consumption.

Tim said that the next Thai government will continue to launch stimulus packages to boost further consumption.

Meanwhile, Kiatipong Ariyapruchya, senior country economist of the World Bank (WB) for Thailand, said that the WB believes the world economy is slowing down, but not entering a recession.