Domestic tourism stimulus not going as well as hoped

It appears that the domestic tourism stimulus package from the government is undergoing a significantly lower take-up than officials had anticipated. Yuthasak Supasorn, governor of Thailand's Tourism Authority, says that only about 10,000 tourists a day make use of the benefits offered, well below the target officials had in mind. As a result, the campaign is now being expanded to allow companies to make discounted hotel reservations that can be used for business purposes or offered to employees or business partners. Yuthasak says demand for the 5 million room nights on offer should increase. Fewer than 1 million has been used so far.

A report in the Bangkok Post says there are calls from some quarters to extend it although the scheme is expected to run until the end of October. Yuthasak, however, insists an extension is not on the table and people now need to take advantage of the offer.

"We are not going to extend the campaign beyond October 31, as we want to accelerate tourism spending during the low season. If the deadline is extended, people will wait till year's end.

The President of the northern division of the Thai Hotels Association, though, disagrees. La-Iad Bungsrithong says it is extremely unlikely that 5 million room nights will be spent between now and October 31 even with the inclusion of business travellers. She says while the scheme might see hotels do well on weekends within 300 kilometres of Bangkok, those in the northern provinces are suffering, as their busy time is traditionally the winter season. Additionally, Covid-19's economic downturn has had a significant impact on people's spending power, with businesses having to introduce temporary lay-offs, meaning group reservations are cancelled. La-Iad says all this shows a need for the scheme to be extended through the high season, until March 2021.

"State agencies and financial institutions which are not affected by any cost reduction must drive more domestic trips outside of Bangkok to support the local economy."

However, the chairman of Thailand's Tourism Council, Trirattanajarasporn, disagrees, saying that allowing businesses to take advantage of the scheme will create increased demand for hotel rooms, and there should be no need to extend the campaign.

"I agree with packages of tourism stimulus which will last until 31 October. It should take place during the low season to help operators win cash during this difficult time. In the next high season, local tourists will continue their travel plans even if there is no stimulus.

The maximum length of hotel stays has been increased from 5 nights to 10 in further efforts to increase take-up, while the air travel subsidy has been increased from 1,000 to 2000 baht.

Source