The strong recovery of Thailand’s tourist numbers has provided a welcome boost for the country’s airlines, although the China market is still lagging and will be the key to further improvement.
When Thai Airways reported its first-half earnings, it highlighted the overall tourism rebound as a major factor behind the revenue growth that is keeping it profitable, despite mounting cost pressure.
Tourism is a vital part of the Thai economy, and it was one of the most popular leisure destinations in the Asia Pacific region before the COVID-19 pandemic. The government recognises this, so it has introduced a range of initiatives to encourage the return of tourists.
The Thai government has set an annual tourist goal for 2024 that is much closer to the 2019 total, and also set a target for the rebound of visitors from China, which is Thailand’s most important market.
Halfway through the year 2024, overall tourist numbers appear on track to meet the government’s target. However, it is less certain that the Chinese goal will be reached.
Fortunately, tourist numbers from other important markets have essentially reached – and in some cases even surpassed – their pre-pandemic levels.