Thailand's tourism sector has met the authorities' proposal to increase the period of visa-free entry for citizens of 56 countries rather skeptically. According to experts, this is unlikely to help overcome the decline in tourist traffic caused by the pandemic.
Pros and cons of the initiative
The Thai authorities recently put forward an initiative to increase to 60 days the period of visa-free stay in the country for citizens of 56 countries. Previously, a 30-day visa-free regime was in effect for them. In addition, for Russians temporarily introduced a 90-day visa-free regime, and for the Chinese, Kazakhs, Indians and Taiwanese canceled visas at all.
These measures are designed to revive the tourism industry in Thailand, which suffered because of the pandemic. However, tour operators themselves look at them rather skeptically. In their opinion, the benefit will be mainly received by long-haul tourists from Europe. They often travel to Thailand for 2-3 weeks in the high winter season and will now be able to visit more regions.
However, it is unlikely that the occupancy rate of hotels will increase significantly. Rather, tourists will choose apartments and condominiums. In addition, they may reduce their daily budget due to longer stays.
As for Asian tourists, they usually go only for a few days, but often. So an increase in visa-free travel is unlikely to attract them.
Costs and revenues
In addition, there are concerns about the ratio of costs and revenues. Tourists do not actually pay taxes, except for VAT. At the same time, they actively consume various resources, the price of which for the local population is subsidized by the state.
Therefore, it might make sense to introduce a special tourist tax, which could be used for infrastructure development. Especially if we take into account Thailand's ambitious plans for tourism revenue against the backdrop of global instability.
What else can be done?
Thus, increasing visa-free travel time alone is clearly not enough. A comprehensive approach is needed, taking into account the interests of all parties. In particular, it makes sense to emphasize the attraction of wealthy tourists, as well as the development of health and ecotourism.
In addition, it is important to improve safety in the tourism sector and increase the frequency of air flights. The solution of all these tasks will help to restore the affected industry and bring tangible revenues to the budget.
Author of the article: Ekaterina Antonova
