The domestic tourism problem

VHO - Domestic tourism has long been considered the "backbone" of the tourism industry whenever the international market fluctuates. However, in Thailand, although the number of international tourists remains stable, the challenge of domestic tourism is becoming increasingly difficult as purchasing power weakens and people tighten their spending habits.

Tourists at Bangkok International Airport, Thailand . Photo: THX/VNA

This reality shows that, for the domestic market to develop sustainably, short-term stimulus packages are necessary but not sufficient. More importantly, it is crucial to build long-term policies to strengthen consumer confidence and spending power.

According to Thai tourism businesses, the number of domestic tourists this year is likely to be lower than last year if timely support measures are not implemented. The decline in domestic tourism stems from increasing economic pressure on the population. Declining household incomes, rising living costs, a sluggish real estate market, and concerns about the economic outlook have led many families to prioritize saving over spending on vacations.

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In this context, the Thai government's plan to implement a 3 billion baht co-payment program for tourism is expected to boost the market, especially during the off-season. Partial cost support will encourage more people to travel, while also easing the pressure on hotels and travel businesses facing declining customer numbers. However, this is only a short-term solution to the domestic tourism problem. If the economic foundation of households does not improve, the effectiveness of these support programs will only be temporary.

A notable fact is that many financially well-off Thais are choosing to travel abroad due to competitive costs and more diverse experiences. This shows that domestic tourism is facing both economic difficulties and intense competition from the international market. To retain domestic tourists, the tourism industry needs to innovate its products instead of just lowering prices. Developing new destinations, diversifying tourism types, and creating flexible tour packages will help enhance competitiveness and attract domestic tourists sustainably.

More importantly, stimulus measures must be implemented at the right time. The off-season is when businesses need support the most; if implemented too late, policies will struggle to be effective and create momentum for the domestic tourism market.

Lessons from Thailand show that stimulating demand is only a short-term solution. The sustainable solution to the domestic tourism problem must come from a stable economy, improved purchasing power, and continuously innovative tourism products to retain domestic tourists.

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Source: https://baovanhoa.vn/du-lich/bai-toan-du-lich-noi-dia-241334.html