White Lotus buzz can't reverse Thailand's tourism decline

The Star

2 days ago

The White Lotus, whose third season featured the islands of Samui and Phuket, is attracting vacationers from the US and Europe, but Thailand needs more than a TV show to stop Asian tourists - who would see The White Lotus's setting as far less exotic - from heading elsewhere. - Bloomberg
BANGKOK: Thailand's tourism outlook in such doldrums that even the so-called The White Lotus effect - a temporary boost in Western visitors inspired by the latest Koh Samui-set season of HBO's hit show - hasn't been enough to offset a slump in arrivals from neighbouring countries.
Foreign arrivals to Thailand dropped for the fourth straight month in May, slipping 14 per cent to 2.6 million, government data show. That's the country's longest streak of declines since 2021, when the Covid pandemic closed international borders.
The biggest drop came from travelers from other Asian countries, whose citizens make up the vast majority of tourists to Thailand. Regional arrivals fell nearly 11 per cent this year through May, compared to the same period in 2024. Visits by Chinese tourists, who make up the largest group by nationality, have plummeted - nearly one million fewer arrivals so far this year versus 2024.
The plunge heading into the summer holiday period and beyond is causing consternation in Thailand, where tourism makes up about 12 per cent of gross domestic product. It's being fueled by lingering concerns about safety, with fears about the growing presence of scam centres around the Myanmar border spooking visitors from China.
Thailand has also in recent months contended with an earthquake that beamed images of a destroyed Bangkok skyscraper around the world, the rising popularity of Japan and China as regional tourism destinations and a strong baht that's made it less of a value destination.
"We have lost a lot tourists to other competing countries in Asia because we didn't tackle the negative images seriously,' said Ratchaporn Poolsawadee, vice president of the Tourism Council of Thailand. "Thailand's tourism is resilient, but this may take months to rebound.'
Arrivals from China have fallen 33 per cent so far this year after a scam gang's January kidnapping of Chinese actor Wang Xing near the Thai border. Wang's ordeal went viral in the mainland, prompting thousands of cancellations as mainland tourists opted for regional competitors including Japan and Singapore that they perceive as safer.
Visits from Malaysia, Thailand's second biggest source of arrivals, dropped as much as 17 per cent during the same period. Travel warnings from Hong Kong, the UK and Australia have cited concerns related to earthquakes and safety.
Flight bookings for the height of summer, June to August, show a 15 per cent decline in Chinese arrivals compared to a year ago, according to data from China Trading Desk, which tracks the mainland tourism market.
Hotel occupancy is forecast to fall to 52 per cent in May from 63 per cent the month before, driven largely by the drop from China, according to a survey of nearly 140 hotel operators within the Thai Hotel Association. Daily room rates are expected to decline in the second quarter as hotels slash prices to compete for guests.
The self-branded "Land of Smiles' has publicised efforts to shut down some scam compounds and arrests following Wang's kidnapping. The efforts come as concerns mount in the tourism industry that Thailand will miss its goal of attracting more than 39 million visitors this year, accounting for about US$68 billion in tourist spending.
To avoid that, industry officials are calling for further action to reassure would-be visitors, including more promotion to non-Chinese markets.
In a bright spot, The White Lotus, whose third season featured the islands of Samui and Phuket, is attracting vacationers from the US and Europe. The third season of the show - which follows the lives of guests and staff at an ultra luxury resort - was filmed at a Four Seasons in Koh Samui and at Anantara resorts.
Tourists from the US have spiked 12 per cent this year through May to more than 625,000, and adventurers from Europe have jumped nearly 18 per cent to more than three million in the same period from a year ago, government data show.
Still, the country could need more than a TV show to stop Asian tourists - who would see The White Lotus's setting as far less exotic - from heading elsewhere.
"Thailand was hit with a string of bad news events,' said Thienprasit Chaiyapatranun, president of the Thai Hotels Association, whose members include the biggest hoteliers in the country. "So now we have travelers concerned about safety and security. The government should act right now and do a lot more to reassure and attract visitors.' - Bloomberg