TCT index tables a tame rating

BANGKOK, 21 August 2019: Thailand’s Tourism Confidence Index for the second quarter of 2019 held steady in the 100 points zone.

Based on feedback from 600 tourism operators, the Tourism Council of Thailand Index at a count of 100 suggests the situation is stable or normal. Lower than 100 the industry is performing below par while over 100 the future looks bright. The range is from zero to 200.

Most of the time, the TCT quarterly confidence index hovers around 100 and as they are based mainly on the opinions and observations of travel industry executives the results could lack objectivity. It rarely fluctuates plus or minus five points from the 100 benchmark.

But as opinions go a score of 100 for the second and third quarters of this year is on par with 2018 ratings despite troubling economic signs, the rise in the value of the Thai baht and a worrying decline in the China market.

Jointly managed and researched by the Tourism Authority of Thailand, Tourism Council of Thailand and Chulalongkorn University’s Faculty of Economics, the Index splits into six sections.

They comprise of an overview of Thai tourism, confidence index of tourism operators, testimonials from domestic and international tourists, tourism situation during key festivals, foreign tourist arrival projections, and recommendations for future action.

In addition to interviewing 600 tourism operators, as well as government officials from related agencies, the research team interviews 350 international and 350 domestic tourists.

In the second quarter of 2019, the Index identified micro and macro factors affecting Thailand’s tourism industry.

They included a slowdown of the world economy;  the launch of the Thai government’s tax reduction scheme; extension of the visa-arrival fee waiver for citizens of 20 nations until October 2019, and the strengthening of the Thai Baht against major currencies.

Both Bangkok and Chiang Mai are facing over-tourism issues that are impacting the destinations, while Phuket can handle more tourists.

Recommendations

Improve transportation infrastructure between primary and secondary cities and make information on all modes of transportation, including ticket reservations available.

The Index called for more transport improvements such as car hire, hailing services and strict pricing controls.

It identified the need to enforce licensing for tour operators and tourism establishments, and introduce measures to address the carrying capacity covering all destinations.

The Index forecasts that Thailand will welcome 9.7 million international tourists (up 7.06% year-on-year) in the third quarter of 2019. It projects arrivals will reach 40.06 million by the end of 2019, up 4.65% over 2018.

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