The global energy crisis has pushed up airfares and transportation costs, particularly affecting short-haul travel within the region, a key driver of Thailand’s tourism recovery.
“Tourist arrivals slowed in the week of March 30 to April 5, particularly from short-haul markets,” said Permanent Secretary of the Tourism and Sports Ministry, Natreeya Taweewong, in a statement on Tuesday.
She noted that arrivals from Malaysia declined due to concerns over reports of fuel shortages at service stations in Thailand, which dented travellers’ confidence and led to the cancellation of tour bus trips.
Even so, she said Malaysia remained Thailand’s second-largest source market, with cumulative arrivals surpassing one million this week.
Total international arrivals for the week stood at 569,593, down 60,509 or 9.6 per cent from the previous week, averaging 81,370 visitors per day, she said.
Arrivals from the United Kingdom rose by 3.16 per cent week-on-week, while those from Malaysia, Russia, China and India fell by 39.59 per cent, 9.67 per cent, 6.23 per cent and 4.38 per cent, respectively.
Thailand recorded about 9.7 million international arrivals between Jan 1 and April 5, generating about 474.4 billion baht in revenue.
Across the industry, hotel operators and tourism-related businesses are grappling with higher electricity and logistics costs, squeezing margins as the sector continues to recover from the pandemic.
The Thai Hotels Association (THA) has called on the government to introduce direct cost-relief measures, including tax reductions such as lower land tax rates, as well as working capital support for small and medium-sized enterprises (SMEs).
Its president Thienprasit Chaiyapatranun said domestic travel during the Songkran festival is expected to be affected by persistently high fuel prices.
“Tourism during this year’s Songkran is quieter than last year. The continued rise in fuel prices has further dampened travel,” he said, warning that the outlook for the second quarter is “very concerning” as it coincides with the low season and rising costs.
Booking data shows Phuket is likely to record the strongest occupancy, while Chiang Mai is facing the most severe impact from the PM2.5 haze crisis, compounding the effects of the energy crunch, he said.
“Compared with other rising costs, hotels are unable to raise room rates under current conditions. Operators must focus on reaching break-even while offering additional services to stimulate demand,” he said.
Songkran or the traditional Thai New Year will be observed from April 13 to 15, marked by family reunions, paying respects to elders and ancestors, and the cleansing of Buddha images.
The UNESCO-recognised festival is also a highlight of the tourism calendar, drawing visitors from around the world to take part in lively and colourful water-splashing activities, celebrating local culture and heritage.