The recent release of the World Economic Forum’s (WEF) latest Travel and Tourism Development Index saw Thailand tumble from 36th place to 47th, a significant blow to the government, which grew a meagre 1.5 per cent in 1Q2024.
The news has seen many within the travel and hospitality sector call for greater investment, financially and conceptually, in the industry.
The WEF index is an analytical overview of a nation’s travel and tourism industry. Using sustainability, socioeconomic, and environmental factors, alongside stakeholder consultations, to inform its conclusions.
The index has five pillars. The first is the Business Environment, which looks at the extent to which a country’s policy environment is conducive to investment and enterprise. The next pillar, Safety and Security, considers security risks to locals, tourists and businesses. Health and Hygiene looks at this healthcare infrastructure and accessibility to treatments.
The Human Resources and Labour Market pillar monitors workforce skill levels, worker health and safety, pay rates, and equality in the workplace. The final pillar is ICT Readiness, which analyses the access and utility of information and communication technology infrastructure and digital services.
The WEF index’s findings pose a challenge to the Thai government’s tourism initiatives. Despite their efforts to streamline visa processes and promote the country’s travel product, the index’s results underscore the need for more substantial improvements.
Sandy Liw, general manager of InterContinental Khao Yai Resort, believes that improved infrastructure across the country, especially in less well-known locations, is key.
“The government may want to consider upgrading and expanding transportation infrastructure, including airports, roads, and public transit systems, to improve accessibility and convenience for tourists. This is especially important for remote areas like Khao Yai, which is such a beautiful destination and relatively new to the international traveller,” noted Liw.
“Completing the new highway early or introducing a high-speed train could significantly enhance access to such locations. Additionally, providing investment incentives in tourism infrastructure and services, particularly in underdeveloped areas, could be beneficial.”
For Sukamal Mondal, area general manager for Amari Bangkok and Shama Properties Bangkok at Onyx Hospitality Group, the index’s less-than-favourable results are an opportunity to improve.
He said: “The drop in Thailand’s ranking is certainly a matter of concern. But, we see this (report) as a call to action to enhance our collective efforts in improving the country’s tourism appeal. While it’s a setback, it also presents an opportunity for stakeholders to collaborate and innovate to regain our standing.”
However, Mondal cited the need for more funding at the ground level to address fundamental issues, stating that investment in upgrading transportation networks and modernising accommodation facilities is “essential”.
Mondal also called for more effective public/private partnerships to solve ongoing problems. Collaboration between the government and private sector can foster innovative solutions and ensure better resource utilisation. Additionally, focusing on sustainability and safety in tourism practices will not only draw more tourists but also enhance their overall experience. He added: “By addressing these areas collectively, we can work towards improving Thailand’s position in global tourism rankings.”
Anne Arrowsmith, general manager at 137 Pillars House Chiang Mai, also suggests looking past the obvious tourist centres to help reverse the issues raised in the WEF index.
“Regional tourism requires a bigger spotlight and a broader strategic approach, especially with respect to increased and more geographically diverse international flight arrivals. Chiang Mai is a prime example. Here, we have a surge in hotel supply while inbound flights have yet to attain pre-Covid levels. Initiatives are needed to attract key airline partners from the Middle East, India and beyond.”
Arrowsmith also explained how big international events will raise Thailand’s profile: “It would be good for the country to secure key sporting events to gain broader appeal. Look what F1 did for Singapore and how Saudi Arabia is investing heavily in elevating its appeal through golf and tennis events.”