The deadly Myanmar earthquake is set to hurt foreign tourist arrivals to Thailand in the coming weeks, the latest blow to an industry already reeling from dwindling Chinese visitors worried about travel safety.
International tourist arrivals are expected to drop by 10 to 15 per cent or even more in the next two weeks as the 7.7-magnitude earthquake on Friday (Mar 28) shook buildings in Bangkok and other Thai tourist hot spots, spooking prospective travellers, the Thai Hotels Association said.
About 10 per cent of foreign tourists checked out early after the quake, said Thienprasit Chaiyapatranun, president of the association, citing an initial survey among the group’s members. Some tourists, however, later returned to their hotels as they had no other options, he said.
“A short-term impact is expected for the tourism industry because of safety concerns,” Thienprasit said by phone on Saturday.
Even a short-lived impact on tourist arrivals will hurt an economy where the industry employs one in five of the country’s workforce and accounts for about 13 per cent of gross domestic product. Thai authorities are betting on an improved tourism performance to propel growth to 3 per cent this year as merchandise exports, another key driver of growth, faces headwinds from the Trump administration’s trade tariffs.
Thai authorities have in the meantime reassured foreign tourists. The country is safe for tourists, Minister of Tourism and Sports Sorawong Thienthong said on Saturday, adding that the government has ordered a safety audit of hotels and major tourist attractions.
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While the earthquake rattled buildings across Bangkok, leading to mass evacuations and suspension of public transport for a day, the city emerged largely unscathed in contrast to the massive destruction in Myanmar. The collapse of a high-rise building under construction in Bangkok was the biggest hit from the temblor, killing workers and trapping dozens under its debris.
To be sure, tourist arrivals were already on the decline due to safety concerns in recent months. A series of high-profile human trafficking to scam centres in Myanmar via Thailand prompted some travellers from China, Thailand’s largest source for tourists, to shun the South-east Asian nation.
Hotel bookings during the water-splashing Songkran festival next month have not been as good compared with two years ago, and post-tremor safety concerns could further hurt confidence among foreign visitors, Thienprasit from the hotel group said.
Foreign tourist arrivals have been falling on a weekly basis since the end of the Chinese New Year rush in early February. Bank of America economists expect downside risk to its forecast of 38.1 million tourist arrivals this year, with the country moving into the low season when European tourists subside and Chinese tourist arrivals still showing no sign of recovery.
Thailand, popular among tourists for its pristine beaches, a vibrant nightlife and Buddhist temples, has welcomed 8.9 million tourists since the start of the year, up 2.9 per cent from a year earlier, according to latest official data.
Foreign visitors travelling in groups are not as concerned about safety, as seen from the normal flight schedules at key Thai airports, said Adith Chairattananon, secretary-general of the Association of Thai Travel Agents.
“But tourists who haven’t made bookings to Thailand may decide to halt travel plans,” Adith said. “The impact could surface in the next two weeks.” BLOOMBERG
