The Tourism Authority of Thailand yesterday set its 2011 targets for international arrivals – 15.5 million adding Bt600 billion to the economy – and domestic trips – 91 million generating Bt432 billion in revenue.
Thailand’s tourism sector has begun to recover with the number of foreign tourists set to increase to 15.5 million next year, earning the country around Bt600 billion in 2011, according to the Tourism Authority of Thailand (TAT), which projected the domestic tourism sector to have 91 million trips with a revenue of Bt432 billion next year.
Thailand government’s first stimulus package, may have helped limit the negative multiplier effect on household consumption.
Key risks to the outlook are (i) political uncertainty and (ii) the timing of the withdrawal of fiscal and monetary stimulus. Increased political tensions may have a long-lasting impact on investment, and withdrawal of stimulus (in Thailand and the advanced economies) must be precisely timed to avoid macroeconomic imbalances (including new asset bubbles) while also ensuring that the recovery is on a sufficiently solid footing.
Despite the rebound, Thailand’s Tourism recovery is still subject to several downside risk
“The federation raises its projection for the number of foreign tourists because it considers the political turmoil has eased. The number of Chinese tourists is likely to increase continuously since Beijing has lifted its warning against travel to Thailand.