Discover Why a Change in Tourism is Great for Thailand’s Economy
Thailand is currently experiencing a change, meaning today we see a completely different view when it come to the Kingdom’s tourist industry. Over the years, the visitors to the country came from the UK and other European nations but times have changed, mainly due to the exchange rates and a strong baht.
Nowadays, fewer Europeans are arriving in Thailand. When they do, it’s for shorter periods of time, spending less money, which has affected many businesses. The traditional entertainment industries such as those built around “girls” are feeling the pinch, with many closing or up for sale.
The other concern lies with the property market. Real Estate companies are struggling, in a market that is suffering from over supply, as prices tumble at an alarming rate.
Yet tourism has increased. The Tourist Authority of Thailand, continually release improved figures to back this up. So how can this be? Well – the answer is simple.
Thailand is surrounded by nations such as China and India, which have huge economies, meaning they have money to spend. However, they also have different cultures and so prefer to spend their money in other ways but spend it they do.
Asia is home to over 60% of the world’s population, most of which are a short-haul flight away from Bangkok. The Chinese, are enjoying greater wealth than ever before, resulting in tourists flocking to Thailand.
Unlike their neighbours, Thailand has the ability to cater for tourists. It has the infrastructure already in place, the shopping malls and the theme parks, making it an ideal destination for family holidays. It is one of the most beautiful countries in the world, with many tourist attractions. It is an ideal location for the Chinese and Indian people to book a holiday. Many can fly here in under three hours as Thailand is to China as Spain is to the UK.
Westerners came in their droves over the last ten years and we saw the condominium market flourish but times have changed. With fewer westerners arriving, the property market is seeing a downturn, meaning there is an over supply of single and two room properties. However, there are excellent opportunities to he had if you invest in the hotel industry, which is thriving due to the Asian tourists arriving.
This is the new target audience for ambitious investors.
Figures from China’s largest travel website, Ctrip, show a 70% drop in tourist heading to South Korea this year as Thailand rose to take the number one spot, and is now the preferred holiday destination for the Chinese people.
The Chinese are becoming richer as their economy is at an all time high, and that is something that is unlikely to change, due to its large population. These new tourists to Thailand require holiday accommodation, which is why places like Pattaya, require more quality hotels.
Now is the time to invest in Thailand and its tourist industry. The Asian market is growing and will continue to do so for the foreseeable future.