The revival of tourism in Thailand threatened by the lack of flights and the rise in fuel prices

As Thailand has just lifted restrictive entry rules and hopes to welcome at least 10 million tourists in 2022, obstacles threaten the recovery.

According to the Tourism Authority of Thailand (TAT), the lack of incoming flights and the surge in air ticket prices are compromising the revival of the Thai tourism industry.

TAT Governor Yuthasak Supasorn said the number of international flights represents only 30% of pre-pandemic levels.

He stated that to help revive the entire tourism industry, the country should have at least 55% of the airlines' pre-pandemic seat capacity.

This could happen during the fourth quarter, with Korean Air and Air Canada having confirmed their schedules for non-stop services.

Air Canada plans to launch its first direct link between Vancouver and Bangkok with four flights per week on Boeing 787, from December 1, 2022 to April 17, 2023.

Korean Air has committed to the TAT, during its recent visit to Seoul, to resume its flights to Thailand in the fourth quarter.

However, many airlines are hesitant to expand their routes or increase their frequencies, as several global uncertainties threaten profit prospects.

Among these threats are the high operating costs due to the surge in fuel prices as well as the longer flight times needed to avoid the airspace over the Russia-Ukraine combat zone.

“Tourists are facing higher travel costs, particularly due to inflation and air fares, which have increased by 20 to 40%.

The TAT works with airlines, whether they are scheduled or charter airlines, to implement joint promotions to help offset these costs.

However, for the European summer season in August, it may be too late to prepare stimulus measures »;, said Mr. Yuthasak.

See: Air fares for Thailand reach crazy levels

Hotel operators indicated that the average occupancy rate should reach 55% to benefit the entire supply chain, but the current flow of tourists is not strong enough to convince more hotels to reopen and bring back their employees.

According to the Tourism Council of Thailand (TCT), the average occupancy rate in Thailand is 34%, while 80% of properties have revenues below 50% of the level recorded before the pandemic.

Chamnan Srisawat, President of the TCT, said that the labor shortage could be a major obstacle during the upcoming high season if arrivals meet government targets.

He said hotels that need to recruit more workers will struggle to hire if they offer salaries similar to those before, given inflation, the likelihood of a minimum wage increase this year and job insecurity in the hotel industry.

Mr. Chamnan said businesses and the TAT are partnering to propose a "Booster Shot" project in collaboration with the Economic Situation Administration Center, aiming to create one million jobs in the tourism sector this year by offering discounted airfare and nights at small hotels.

Source: Bangkok Post