25-7-2023 (BANGKOK) In an unexpected turn of events, Thailand experienced a tourism deficit with Japan during the first half of 2023. For the first time, the number of Thais heading to Japan exceeded inbound Japanese tourists to Thailand, raising eyebrows in the travel industry.
Data from January to June revealed that a total of 497,700 Thai tourists visited Japan, while 326,347 Japanese nationals arrived in Thailand. While the volume of Thai tourists traveling to Japan was lower than the 683,595 recorded during the corresponding period in 2019, the shift in the tourism balance was primarily attributed to the stagnant outbound Japanese market.
Another noteworthy trend emerged as South Korean tourists outpaced the Japanese market, with 830,576 visitors arriving in Thailand from South Korea between January 1 and July 16.
In 2019, Thailand warmly welcomed 1.88 million tourists from Japan and 1.78 million travelers from South Korea, according to data from the Tourism and Sports Ministry. Conversely, based on figures from the Japan National Tourism Organization, 1.3 million Thai tourists traveled to Japan.
Yuthasak Supasorn, the governor of the Tourism Authority of Thailand (TAT), explained that the slow outbound Japan market was mainly due to the sluggish Japanese economy, particularly the weak yen, which discouraged people from spending money abroad. However, this economic situation offered an advantage to Thai tourists, who found themselves with increased spending power when choosing Japan as their preferred destination over other options.
Mr. Yuthasak noted that the recent end to Japan’s border control measures on May 8 also contributed to the sluggish flow of tourists, as many travelers wanted to avoid complicated procedures, especially those who had not been vaccinated.
“The overall number of outbound Japanese shrank. Not only Thailand felt the impact. Meanwhile, as Japan has been the favorite destination of Thai tourists, when the borders were reopened and their spending power became more valuable due to the currency situation, Thailand saw a tourism deficit for the first time,” he said.
Despite the challenges, there were encouraging signs in 2022, as the market share of Thai tourism in Japan increased to 12%, up from 10% in 2019.
Looking ahead, the TAT is optimistic about the market recovery and aims to further increase the market share to 15%. The agency hopes to witness a strong resumption of tourism during the holiday period in August.
To stimulate the market and maintain awareness among tourists, the TAT organized the Amazing Thailand Fest 2023 in Osaka last week. The festival showcased Thai soft power through traditional events such as the Loy Krathong Festival. In a bid to attract younger tourists, two famous Thai artists from the “Boys Love” TV series were brought to the festival to create new exposure to Thailand.
Additionally, in August, the TAT plans to invite media representatives from Japan to explore new tourism products in Bangkok, Ayutthaya, Chiang Mai, Phetchaburi, and Samut Songkram. This initiative follows a successful media briefing in Osaka to update the new products with 50 media organizations and travel agents.
As part of its post-Covid promotional strategy, the agency has planned Thailand festivals in four cities across four continents: New York, Barcelona, Osaka, and Sydney.
Mr. Yuthasak also revealed that the TAT is gearing up to open two new offices in Riyadh, the capital of Saudi Arabia, and the US city of Chicago. The Riyadh office aims to boost the market, which has shown an upward trend since Thailand restored its diplomatic relationship with Saudi Arabia in 2022. Meanwhile, the Chicago office will replace its Toronto counterpart, which has already been closed.
